Elon Musk will take a step back from his role at the Department of Government Efficiency (DOGE) after Tesla’s profits slumped during the first quarter of the year.
Tesla’s share value has tumbled, with the company reporting a 20 per cent decreased in the number of cars sold during the first three months of the year, compared with the same period in 2024, and a 70 per cent fall in profits. Last month, it was reported that chief executive Musk had lost $148 billion (£111 billion) of his net worth since 17 January.
During an earnings call on Tuesday (22 April), Musk said that from May his “time allocation to DOGE will drop significantly”, and he will only spend two days per week working for the Trump administration.
He will continue to do what he called the “critical work” of DOGE “for as long as the president would like me to do so and as long as it is useful”, adding: “I continue to believe that Tesla, with excellent execution, will be the most valuable company in the world by far.”
Musk called on investors to look beyond the “bumps and potholes of the road immediately ahead of us” and towards a “bright, shining citadel on a hill”.
The richest man in the world, Musk became a major Donald Trump donor during the election campaign and has – controversially – been at the heart of cutting US government spending and jobs since the new administration took office.
His unelected involvement in politics has sparked protests and boycotts of Tesla cars across the world, with critics holding rallies, causing damage to vehicles, hanging unflattering signs at factories and describing the power he has been afforded by Trump as a “coup”.
Musk has denied any “hostile takeover” of the government, saying: “The public voted for major government reform… and they’re going to get what they voted for. That’s what democracy is all about.
“We have this unelected, fourth unconstitutional branch of government: the bureaucracy, which has, in a lot of ways, more power than any elected representative.”
Temporary government employees are normally limited to work 130 days per year, and Musk’s allowance would be up by late next month, if the days are counted from Trump’s inauguration.
The decision to step back from DOGE comes after rumours swirled that Musk was leaving the role, something he branded as “fake news” as recently as earlier this month.
White House press secretary Karoline Leavitt said it was “garbage” that he was leaving, adding: “Elon Musk and president Trump have both publicly stated that Elon will depart from public service as a special government employee when his incredible work at DOGE is complete.”
DOGE has been responsible for a series of controversial moves to cut and freeze federal funding and foreign aid, including a $25,000 (£18,800) award to help LGBTQ+ refugees and the President’s Emergency Plan for Aids Relief.
Thousands of jobs have also been culled, resulting in several lawsuits being filed in state and federal courts.
Share your thoughts! Let us know in the comments below, and remember to keep the conversation respectful.
The post Elon Musk to take step back at DOGE after Tesla earnings crash appeared first on PinkNews | Latest lesbian, gay, bi and trans news | LGBTQ+ news.