Elon Musk, a tech billionaire who is known for his revolutionary ventures such as Tesla, Neuralink, SpaceX, and others, had surprisingly gotten engaged in politics. His surprising collaboration with the Trump administration through the Department of Government Efficiency (DOGE) is one that sparked controversial and widespread curiosity, criticism, and media coverage. As the Trump administration’s cost-cutting initiative, DOGE has slashed tens of thousands of federal jobs in the name of reducing fraud, waste, and abuse. But DOGE has also sparked a backlash and plenty of lawsuits as critics accuse it of accessing voters’ private data and cutting programs that are vital to many Americans.
The Department of Government Efficiency (DOGE) was formed under President Donald Trump’s administration. This initiative aimed to slash government waste and streamline government spending. Its mission was clear: to cut bureaucracy, terminate redundant contracts, and identify and end fraudulent expenditures despite the raised brows at its name, as it had a resemblance to Dogecoin, which is a coin that Elon Musk openly supported.
While Elon Musk’s involvement with DOGE was never stated in specific terms or made fully public, he was reportedly involved in overseeing reviews of large federal contracts, identifying outdated technologies, and proposing alternatives that leverage automation and AI. This was also not without backlash, as critics questioned whether a multi-billionaire CEO should be given a role in national government, especially one of such consequence.
Tesla’s rundown.
Tesla’s sales had taken a hit as the automaker’s vehicles have increasingly become a symbol of the Trump administration, repelling some consumers. The stock has also plunged more than 50% from its most recent high in December, when the shares increased after the presidential election on optimism that Musk’s role advising Mr. Trump would help the EV maker’s bottom line.
Tesla’s first-quarter earnings, announced Tuesday, fell far short of analyst expectations, with revenue tumbling 9% and profit slumping 71%.
It is important to note that Tesla’s issues go beyond politics. The company once dominated the electric vehicle market; however, it has been facing competition from U.S. automakers like Ford and rivals in Europe. Earlier this year, Chinese electric vehicle maker BYD announced it had developed an electric battery charging system that can fully power up a vehicle within minutes. Moves like this are likely to hurt Tesla.
The turning point
In a Tesla earnings call held in April 2025, Elon Musk finally addressed the elephant in the room. He announced that he would reduce his involvement with the Department of Government Efficiency (DOGE) starting from May 2025. He says that instead of devoting full weeks to the department, he would only work one or two days per week so as to get more time to recenter his focus on Tesla’s struggling growth.
While the announcement reassured Tesla’s shareholders, the announcement stirred up another question: Why not withdraw from DOGE completely?
Elon Musk responded that he would remain involved for as long as the Trump administration found him useful. “If the president wants my help, I can offer without sacrificing Tesla’s future”. This was his statement during the call.
Tesla shares, which have fallen 41% this year, jumped 4% to $247.53 after Musk vowed to scale back his work at DOGE.
Some analysts say that Elon Musk leaving DOGE might not heal the wounds caused by Elon Musk activities
