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TESLA'S ELON MUSK TO REDUCE ROLE IN GOVERNMENT EFFICIENCY DEPARTMENT
AppleMagazine
|April 25, 2025
Tesla CEO Elon Musk announced plans to significantly scale back his involvement with the Department of Government Efficiency (DOGE), a Trump administration initiative aimed at slashing federal spending, starting in May 2025.
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Speaking on Tesla's first-quarter earnings call, Musk said he would shift his focus to the electric vehicle company, which has faced a 20% drop in automotive revenue and a 71% plunge in net income year-over-year. For Tesla investors, employees, and policy watchers, this move signals a potential turning point as Musk seeks to stabilize the automaker amid protests and brand challenges tied to his political role.
Musk, who joined DOGE as a special government employee limited to 130 days of service, has spearheaded controversial cuts estimated at $160 billion in savings, though some figures have been disputed. His political activities, including support for President Donald Trump and Germany's far-right AfD party, have fueled boycotts and vandalism targeting Tesla, contributing to a 40% stock decline in 2025. With Tesla's market capitalization down nearly $600 billion since December 2024, Musk's reduced DOGE role could refocus efforts on revitalizing the company's aging vehicle lineup and addressing competitive pressures from Chinese manufacturers.
The announcement comes as Musk navigates a complex landscape of public backlash, investor concerns, and regulatory shifts. While DOGE's mission to streamline government operations continues, Musk's planned reduction to one or two days per week on government matters reflects a strategic pivot to prioritize Tesla's recovery. As the company grapples with Trump's 25% tariffs on foreign autos and a shifting global market, Musk's leadership will be critical in steering Tesla toward renewed growth.
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