Tesla CEO Elon Musk confirms time spent with DOGE will drop ‘significantly’

In a recent earnings call for Q1 2025, Tesla CEO Elon Musk announced that his time allocation towards the Department of Government Efficiency (DOGE) will decrease substantially in the coming month, as he aims to refocus on Tesla's operations. This announcement follows the release of Tesla's disappointing Q1 results, where the company reported a 9% decrease in total revenue year-over-year, amounting to $19.3 billion, and a significant decline in vehicle deliveries. Tesla delivered 336,681 vehicles in the first quarter, a drop from 386,810 during the same time a year prior. Despite these challenges, Musk remains optimistic about Tesla's prospects, highlighting the ongoing development of autonomous vehicles and energy products, which he believes will propel the company into a new phase of growth. Analysts, including Wedbush's Dan Ives, noted that Tesla is at a crucial juncture, exacerbated by Musk's dual commitments to his duties with DOGE and leading the automotive giant. Ives expressed concern that Musk's political engagements may be conflating the Tesla brand with polarized political sentiments, which potentially impacts its image among consumers. Despite the challenges, Musk emphasized that Tesla's production lines are gearing up for new, more affordable models and autonomy software expected to launch in the second half of 2025. The energy division also demonstrated resilience, with revenues from energy storage products showing a notable increase of 67%. Experts believe that focusing on profitability and innovation will be critical for Tesla as it navigates the shifting landscape of the automotive and energy markets, marked by increasing tariffs and political uncertainties. Furthermore, the call hinted at the strategic need to localize supply chains and accelerate advancements in AI and robotics, which Musk sees as pivotal to Tesla's future. Opponents of Musk's involvement with DOGE have raised flags about the potential distractions it might cause, suggesting that his full return to Tesla could stabilize stock prices and investor confidence going forward.