Austin – Elon Musk announced Tuesday he will decrease his work with the Trump administration starting next month. Musk stated the move allows him to focus on Tesla more. During an earnings call, Musk said, “Probably in the next month, my time allocation to DOGE [Department of Government Efficiency] will drop significantly.”
Tesla Reports Financial Difficulties
This announcement comes as Tesla faces financial problems. The company reported quarterly profits dropped 71 percent to $409 million. Auto sales also fell, and revenue decreased nine percent to $19.3 billion.
Analysts express concern that Musk’s government work could harm the Tesla brand. The company faces market uncertainty. Changing trade policies affect supply chains and costs. Tesla acknowledged, “this dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term.” Tesla still plans new, cheaper models in early 2025, but reports mention a possible delay for the lower-cost Model Y.
Analysts Want Musk to Focus on Tesla
Investors and analysts want Musk to prioritize Tesla. Dan Ives at Wedbush Securities called Musk’s continued DOGE role a “Code Red” issue. Ives pointed to Tesla’s stock decline since Trump returned to office.
Morgan Stanley analysts noted investor feeling depends on Musk showing he is prioritizing Tesla. “Investors will be searching for any signs of Tesla’s CEO reprioritizing the efforts of Tesla vs. politically oriented endeavors,” they wrote. Analysts believe it is important for Musk to focus on Tesla.
Abiodun Labi
