Elon Musk’s role in the Trump administration has been evolving, particularly as Tesla faces financial challenges and declining profits in recent months.
Elon Musk was appointed to head the DOGE Department under president Trump
When President Donald Trump returned to office, he appointed Elon Musk to lead the Department of Government Efficiency (DOGE) with a clear goal: reduce unnecessary government spending.
Musk’s responsibilities at DOGE included overseeing cost-saving initiatives.
These initiatives reportedly saved $65 billion through asset sales, fraud eliminations, and programmatic changes.
However, some reports have questioned the accuracy of these figures.
One report even claimed that nearly $1 billion in savings “disappeared” overnight.
Tesla faces financial struggles amid Musk’s government involvement
While Musk has been focusing on his government role, Tesla has been grappling with a series of setbacks, including vandalism and falling stock prices.
Ross Gerber, an early Tesla investor, urged Musk to step down as CEO due to his government role.
Speaking on Sky News, Gerber said: “The company’s reputation has just been destroyed by Elon Musk.
“Sales are plummeting so, yeah, it’s a crisis. You literally can’t sell the best product in the market place because the CEO is so divisive.
“It’s time for somebody to run Tesla. The business has been neglected for too long.”
Additionally, Tesla’s profits recently dropped by $981 million.
It reflected the company’s ongoing struggles as it faces declining sales and a turbulent reputation.
Musk’s government role, especially in DOGE, has led to tensions between his political and business responsibilities.
While, Tesla investors have voiced growing concerns about Musk’s divided attention.
Musk announces reduced role in DOGE as he shifts focus back to Tesla
During a recent earnings call, Musk revealed that his involvement with DOGE will be significantly reduced from May onwards.
He emphasized that he would continue spending “one or two days per week” on government issues, but only as long as President Trump requests his involvement.
This move marks a clear pivot for Musk. It signals his renewed focus on leading Tesla amid the company’s struggles.
Controversy surrounds Musk’s government role and Its impact on Tesla
Musk’s political involvement has been controversial, with some Tesla investors expressing frustration.
Ross Gerber, an early investor, publicly called for Musk to step down as Tesla’s CEO.
Gerber criticized Musk, stating that Tesla’s reputation has suffered due to his political activities.
Additionally, he also noted that sales have been negatively impacted by Musk’s controversial actions.
Tesla’s stock price has dropped by over 50% since December, exacerbating concerns about the company’s future under Musk’s leadership.
However, Musk’s tenure at DOGE was never meant to be permanent.
He was initially appointed for a limited period of 130 days, a transition that is now expected to occur soon.
Both Trump and Musk have hinted at a possible exit from government responsibilities in the near future.
Musk has suggested that by the time his role ends, substantial work in reducing the deficit will have been accomplished.
