Elon Musk to Scale Back White House Role as Tesla Profits Nosedive 71%

Billionaire entrepreneur Elon Musk announced that he will significantly reduce his involvement with former President Donald Trump’s administration in May to refocus on Tesla, following a sharp drop in the company’s quarterly earnings.

Speaking during Tesla’s earnings call on Tuesday, Musk said, “Probably in the next month, my time allocation to DOGE will drop significantly,” referring to the “Department of Government Efficiency,” a Trump-era initiative he has been leading.

The announcement came as Tesla reported a 71% year-over-year decline in first-quarter profits, down to $409 million. Analysts attributed the decline in part to reputational damage from Musk’s controversial political engagement, particularly his role in government downsizing efforts under Trump.

Revenue also fell 9% to $19.3 billion, prompting the company to withdraw its 2025 guidance due to mounting uncertainty around global trade policies and shifting consumer demand.

“Uncertainty in the automotive and energy markets continues to increase,” Tesla said in a statement. “Rapidly evolving trade policy is disrupting the global supply chain and impacting the cost structures for Tesla and the industry at large. Combined with changing political sentiment, this could significantly affect near-term demand.”

Despite the financial headwinds, Tesla emphasized progress on future product launches, noting that new, more affordable vehicle models are scheduled for release in the first half of 2025. The company also confirmed that its much-anticipated Robotaxi service remains on track for a June launch in Texas.

Musk reaffirmed his long-term optimism for Tesla, pointing to its continued leadership in robotics, autonomous driving, and artificial intelligence.

Musk, currently the world’s richest person, has drawn increased scrutiny for his political involvement after donating over $270 million to Trump’s 2024 re-election campaign. His leadership of DOGE has faced criticism for enabling deep budget cuts and gaining access to sensitive government data, sparking concerns about the future of vital programs like Social Security, hurricane forecasting, and humanitarian aid.