On the same day that Tesla reported one of its worst quarterly performances in years — missing revenue targets and posting a staggering 71% drop in net income, Elon Musk announced plans to significantly scale back his involvement with the Department of Government Efficiency (DOGE) starting in May.
“I think the heavy lifting is done,” Musk said during a call with investors. “Starting in May, the time I spend on DOGE will drop considerably.” He clarified that he will continue handling “essential tasks” one or two days per week “as long as the president deems it useful.”
Musk’s formal mandate as a special executive appointee is set to expire on May 30, marking the end of a 130-day term in the temporary federal role focused on optimizing public spending.
Meanwhile, Tesla recorded its weakest quarter since 2022. Revenue fell 9% year over year to $19.3 billion, missing analysts’ expectations of $21.45 billion. The drop in profit was even steeper, plunging from $1.39 billion to $409 million. Earnings per share came in at just $0.27, well below the $0.43 consensus.
Vehicle deliveries sank 13% to 336,681 units — Tesla’s lowest quarterly figure in three years. The stock has lost half its value compared to a year ago, and signs of trouble are mounting: a rise in used Tesla sales, reported vandalism targeting vehicles, and a high-profile snub from the Vancouver Auto Show, which excluded the company from its March edition. Adding to the setbacks, Tesla has issued a recall for 46,000 Cybertrucks—nearly all units sold to date.
Still, Musk struck an optimistic tone. “Tesla has never been more promising,” he said. “Our core value is delivering sustainable abundance through intelligent, affordable robots. This is the best future imaginable—abundant and environmentally positive.”
At the top of Tesla’s roadmap is the rollout of fully autonomous vehicles. Musk claimed that by the end of the year, “you’ll be able to fall asleep in your car and wake up at your destination — at least in many U.S. cities.” The company plans to launch its Robotaxi service in June, and aims to have “millions of Teslas operating in full autonomy” by 2026.
Wall Street responded with caution, but not panic. “Given the anxiety going into this report, the numbers—while clearly negative—are almost a relief,” said Thomas Monteiro, senior analyst at Investing.com. “If this is the bottom, there’s room to rebound, especially with the upcoming low-cost models and Robotaxi rollout.”
Others were more critical. In a client note, Wedbush Securities said Musk’s dual role has created “a damaging feedback loop.” The firm wrote: “If he chooses to remain in the White House orbit, the brand impact could be lasting. But if he returns full-time to Tesla, the company regains its strategic linchpin.”
Musk pushed back on the criticism. “There’s no demand crisis—just economic uncertainty,” he said. “When macro conditions are unstable, people delay big-ticket purchases. In a normal environment, we don’t see signs of weakening demand.”
Tesla declined to provide guidance for the next quarter. The outlook remains tied to unpredictable factors: global trade policy, production timelines, and the pace of autonomy development. But the company’s quarterly report included a warning: “Shifts in the political climate could materially affect near-term demand.”
