Elon Musk, the Department of Government Efficiency boss, told Tesla shareholders on Tuesday that he plans to dramatically cut back on his duties as the "First Buddy" for the Trump administration from next month and will be focusing more on his company, Tesla, after the carmaker reported a sharp decline in its first-quarter earnings.
Tesla's profits for the first quarter plunged by 71%, bringing in only $409 million compared to $1.4 billion during the same period last year. The disappointing first-quarter results fell short of Wall Street's expectations, and investors are growing increasingly concerned about the future of the once-leading electric vehicle manufacturer, with Musk dedicating more time to DOGE.
Musk to Focus on His Company
"Starting next month, I will be allocating far more of my time to Tesla," Musk said after Tesla earnings call, according to Business Insider. Tesla's stock has lost nearly 40% of its value since January when Musk took over the role of chief of the Department of Government Efficiency (DOGE) and could regularly be seen accompanying Trump.
Tesla's shares recovered slightly after Musk's post-earnings announcement.
Musk explained that "the major work of establishing" of DOGE is now complete, and his involvement in Trump's government cost-cutting efforts will "drop significantly" starting May.
However, the Tesla CEO said he still plans to dedicate one or two days a week to help DOGE in its work.
Speculation was rife that Musk would step down from his role as the chief of DOGE by the end of May, when his designation as a special government employee (SGE) expires.
According to federal guidelines, SGEs are limited to serving in government roles for not more than 130 consecutive days. This makes May 30 Musk's likely final day overseeing DOGE. Musk currently also heads Tesla, SpaceX, and Starlink.
Musk's Departure Assured
Earlier this month, Trump told reporters that he wants Musk to stay involved in his administration "for as long as possible," although he admitted that the billionaire entrepreneur might prefer to refocus on his business ventures.
"We're in no rush, but there will be a point in time in which Elon's going to have to leave," Trump said on April 3, noting that Musk has "a number of companies to run."
The president didn't give an exact time when Musk would be leaving DOGE but said that he expects it will take place "in a few months."
"I think a great wrong is being done to the people of Tesla and to our customers," Musk said in an interview last month with Bret Baier on Fox News' Special Report, referring to the recent wave of vandalism.
"I mean, Tesla's a peaceful company that has made great cars, great products — that's all it's done," he argued. "It hasn't harmed anyone, and yet, people are committing violence."
