On April 23, 2025, Tesla CEO Elon Musk announced plans to significantly reduce his working hours at the Department of Government Efficiency (DOGE) starting next month, dedicating more attention to Tesla's operational management. This decision effectively alleviated investor concerns over his distraction with government affairs, with Tesla's stock price rising approximately 5% in after-hours trading.
Musk stated that from next month, he will devote more time to Tesla, noting that his work at the Department of Government Efficiency is essentially complete. Previously, due to significant declines in Tesla's sales and the rising costs driven by the Trump administration's tariff policies, investors and analysts urged Musk to refocus his attention on the company's operations. Musk's involvement in government affairs also provoked dissatisfaction among some consumers.
Tesla's first-quarter financial report revealed adjusted earnings per share of 27 cents, falling short of analysts' expectations, and abandoned its earlier prediction of sales growth resuming by 2025. Wall Street expressed dissatisfaction with Musk's political activities, believing these activities alienated Tesla's core customers and damaged the brand's image. This year, Tesla's stock has declined, and Musk's personal wealth shrank by over $130 billion.
Gene Munster, managing partner at Deepwater Asset Management, stated that Musk should end his work at the Department of Government Efficiency, viewing it as a crucial step to repairing Tesla's brand image. Nevertheless, Musk indicated he would not resign from the department and would continue to engage in government affairs to some extent during Trump's term. As Musk approaches the work-hour limit for his role as a special government employee, his participation in government affairs will decrease in the coming months.
During a conference call, Musk emphasized that Tesla is currently laying the groundwork for future growth through "prudent investment," particularly by advancing self-driving (robotaxi) and robotics businesses, such as the humanoid robot Optimus. He also mentioned Tesla's efforts to localize its supply chain to address rising costs and logistical pressures. Despite escalating challenges, particularly the Trump administration's tariff policies potentially affecting the global automotive supply chain, Tesla still expects minimal impact.
Additionally, Tesla stated that the company will continue to drive hardware-related profit growth and plans to launch updated versions of the Model Y and more affordable models in the first half of this year, while also initiating a robotaxi service in Austin. Musk plans to deploy 10 to 20 robotaxis at the service's outset and gradually expand the fleet.
