Musk to Focus on Tesla After Profit Slump, Scaling Back Washington Role

Elon Musk revealed his intention to decrease his Washington presence while focusing on Tesla operations because of the significant profit decrease at the electric vehicle company. During a Tuesday analyst call Musk declared that the “major work” of building the Department of Government Efficiency (DOGE) is finished so he will dedicate his attention to Tesla starting in May while maintaining government work to only one or two days per week.

The first quarter results at Tesla showed a 71% decline in profits together with a 9% decrease in revenue because of negative public reaction toward Musk's leadership of DOGE and its controversial cost reduction measures. The Austin-based company experienced declining vehicle sales because public demonstrations across the nation exposed deep national disagreements about DOGE's employment reductions.

According to Wedbush Securities analyst Dan Ives the return of Musk to Tesla represents a major positive development because investors want him to concentrate on the company. Tesla stock increased by more than 5% in evening trading but its year-to-date performance shows a decline exceeding 40% because of market uncertainties.