Tesla Inc (NASDAQ:TSLA) CEO Elon Musk clarified Tuesday that he is not stepping down from the Department of Government Efficiency (DOGE), but is merely reducing his time commitment. Responding to a post on X, Musk stated, “Not stepping down, just reducing time allocation now that @DOGE is established.”
This statement follows Tesla’s Q1 earnings call, during which Musk announced plans to focus more on Tesla beginning in May. While stepping back, he will continue advising President Donald Trump and remain involved with DOGE a few days per week. DOGE, an initiative launched by Trump and led by Musk, aims to reduce government spending, initially projecting a $2 trillion fiscal deficit cut within two years. However, Musk has since scaled back those targets.
Musk emphasized that the foundational work to establish DOGE is mostly complete, allowing him to reallocate attention to Tesla. Despite this, he noted that around 40% of his time will still go to the agency.
Critics, including Tesla shareholders, argue Musk’s involvement in political ventures has distracted him from managing the EV company. Tesla recently reported weaker-than-expected Q1 earnings amid declining vehicle sales, intensifying competition from Chinese automakers, and uncertainty tied to Trump’s proposed trade tariffs.
Additionally, Musk’s political alignment with the alt-right has sparked calls for a Tesla boycott in both the U.S. and Europe, further pressuring the brand’s public image.
As Tesla navigates a challenging market environment and investor concerns mount, Musk’s balancing act between government duties and Tesla leadership remains in sharp focus.