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Elon Musk to Scale Back Role in Trump’s DOGE Department as Tesla Refocuses Amid Slumping Sales

Tesla CEO Elon Musk announced Tuesday that he will scale back his involvement with the Trump administration’s Department of Government Efficiency (DOGE) beginning next month, citing a renewed focus on his core businesses amid mounting criticism and declining Tesla sales.

Musk has faced growing political backlash over his leadership role at DOGE, where he spearheaded contentious efforts to slash federal jobs. The initiative has triggered widespread protests and acts of vandalism at Tesla showrooms. Meanwhile, investors have expressed concern over Musk’s divided attention as Tesla’s sales have faltered in recent months.

During a quarterly earnings call, Musk stated, “The large slog of work necessary to get the DOGE team in place and working with the government to get the financial house in order is mostly done.” He added that while his direct involvement will decrease, he still plans to dedicate approximately 40% of his time to DOGE.

Markets reacted positively to the announcement, with Tesla shares rising 5.5% during the call after initially gaining 4% in after-hours trading. However, the stock remains under pressure, having lost nearly half its value since its peak in December.

Despite the turbulence, Tesla reported stronger-than-expected profits in its core electric vehicle segment and confirmed plans to launch a lower-priced model. Still, the company indicated it may revise its growth outlook in the next quarter due to rising global trade tensions and shifting political dynamics.

“We find it difficult to measure the impacts of shifting global trade policy on the automotive and energy supply chains,” Tesla said in a statement. “Changing political sentiment could have a meaningful impact on demand for our products in the near-term.”

Further complicating the outlook are escalating tariff disputes. The U.S. recently raised tariffs on Chinese imports to 145%, prompting retaliatory measures from Beijing. In response, Tesla has suspended orders for its Model S and Model X in China and paused some imports of components from the country, according to Reuters.

Musk reiterated his opposition to high tariffs and acknowledged broader economic headwinds. “Macro demand for cars isn’t immune,” he said. “Economic uncertainty causes people to pause on making a major capital purchase like a car.”

The announcement marks a notable shift in Musk’s priorities as he seeks to reassure investors and re-center his leadership around Tesla during a challenging period for the company and the global auto industry.

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