Tesla Profits Drop as Elon Musk Steps Back from DOGE Role during Trade Turmoil

By Evanns Momodu, updated 14:21

Tesla reports a major earnings miss as Elon Musk announces plans to scale back his role in Trump’s DOGE agency. Trade war uncertainty clouds the company’s outlook.

Tesla CEO Elon Musk told investors he will be scaling back his involvement in the Department of Government Efficiency (DOGE), the Trump administration agency where he serves as a senior advisor. The announcement comes as Tesla revealed a steep drop in quarterly profits and growing concerns over the impact of global trade tensions.

Speaking during Tesla’s latest earnings call, Musk said he plans to limit his DOGE duties to just “a day or two a week” starting in May.

“Beginning next month, my time allocation to DOGE will drop significantly,” Musk said, as he addressed mounting investor concerns over his divided focus and the company's underperformance.

Tesla’s quarterly results fell short of Wall Street expectations, prompting a reassessment of its financial outlook for the remainder of the year. The company cited ongoing global trade disputes and economic uncertainty as major contributing factors.

Despite producing its vehicles domestically, Tesla imports key parts for its U.S. operations. With President Trump’s recent wave of auto-related tariffs—announced on April 3 and with more expected—cost pressures are expected to increase.

“It is difficult to measure the impacts of shifting global trade policy on the automotive and energy supply chains, our cost structure and demand for durable goods and related services,” the company stated.

Tesla now plans to revise its forward guidance in response to the unpredictable trade environment.

While Musk acknowledged investor unease, he defended his contributions to the Department of Government Efficiency. He argued that the initiative plays a vital role in reducing waste and inefficiencies within the federal system.

“I urge everyone to look beyond the bumps and potholes immediately ahead of us,” Musk said, reiterating his belief in long-term growth for Tesla.

Still, by announcing his partial withdrawal from government service, Musk appeared to distance himself from the fallout of Trump’s protectionist trade agenda, which many analysts see as a drag on the tech and auto sectors.

Though Musk stopped short of directly criticising the Trump administration, his remarks hinted at a growing divide between Tesla’s business goals and Washington’s economic strategy. Tesla emphasized that while it is less exposed to direct auto import tariffs, the ripple effects on the supply chain and component costs are unavoidable.

Industry analysts say Musk’s step back from DOGE is a sign that investor pressure is reshaping his priorities.
Source: CNN