Elon Musk said Tuesday that he will take a major step back from his work as the leader of the Department of Government Efficiency.
Why it matters: The Tesla CEO has become a close and outspoken ally of President Trump, but his government-slashing work via DOGE has sparked a damaging backlash on Tesla.
The big picture: Musk said on Tesla’s earnings call that “my time allocation to DOGE will drop significantly” likely starting in May, declaring the effort “mostly done.”
- “I’ll have to continue doing it for I think the remainder of the President’s term just to make sure the waste and fraud that we stopped does not come roaring back, which it will do if it has the chance,” Musk said.
- “I think I’ll continue to spend a day or two per week on government matters for as long as the President would like me to do so and as long as it would be useful,” he added.
Musk also acknowledged “some blowback” on Tesla due to his Trump ties, saying there’s been “a few bumps in the road,” but said the company’s future is still bright.
- “I encourage people to look beyond the bumps and potholes of the road immediately ahead of us,” he said. “Lift your gaze to the bright shining citadel on the hill — I don’t know, some Reagan-esque imagery — and that’s where we’re headed.”
He also claimed, without evidence, that Tesla protesters are “receiving fraudulent money” from the government: “That is the real reason for the protests,” he said.
The intrigue: His comments came after Tesla acknowledged, for the first time, that the backlash might be hurting the company’s financial performance.
- Tesla’s first-quarter revenue totaled $19.3 billion, down 9% from a year earlier and short of S&P Capital IQ expectations of $21.3 billion.
Tesla also said that President Trump’s tariffs would hurt the company. Musk disclosed on the earnings call that he had voiced his opinion on tariffs directly to the president.
- “I’m an advocate of predictable tariff structures and generally I’m an advocate for free trade and lower tariffs,” he said.
- He said he’s “hopeful” that Trump will “perhaps weigh my advice differently in the future” but said he respects the president’s right to do what he wants.
Go deeper: Elon Musk’s Tesla admits “political sentiment” may hurt the company
Editor’s note: This article was updated with additional comments from Tesla’s earning’s call.<br/>
