Musk to scale back role in Trump administration amid Tesla revenue slump

During a presentation of Tesla's performance, Musk said he would continue to support the president through DOGE "to make sure that the waste and fraud that we stop does not come roaring back."

Having spent nearly $300 million on the 2024 campaign to help return Trump to the White House, Musk created DOGE and joined the administration with the mission of radically downsizing and limiting the capabilities of the federal government.

Tesla CEO said he would continue to devote "day or two per week" to government matters "for as long as the president would like me to do so."

Tesla's problems

Musk's comments came after his company reported disappointing first-quarter results, including a 20% drop in revenue compared to the same period last year and a 71% decline in net income.

In addition to challenges Tesla has already faced - such as competition from China and an aging fleet of electric vehicles - the company recently encountered protests in the US and Europe, along with reputational damage stemming from Musk's ties to Trump and his support for Germany's far-right AfD party.

"The protests that you'll see out there, they're very organized," Musk said on Tuesday's call. He claimed, without evidence, that some people are likely protesting "because they're receiving fraudulent money" or are "recipients of wasteful largesse."

Musk's department

On its website, DOGE claims - without evidence - that its cuts have saved $160 billion. However, Musk's savings estimates have been challenged, and DOGE has deleted some of its largest projected savings. Over the same period, Tesla has lost about $600 billion in market capitalization.

DOGE has also enacted cuts at agencies responsible for oversight of Musk's companies. These include the SEC, Federal Aviation Administration, and National Highway Traffic Safety Administration.

In early February, the White House stated that Musk holds the role of a "special government employee," a designation subject to fewer requirements for disclosure of conflicts of interest and ethical standards.

The Department of Justice states that this role is intended for those who will work in government for no more than 130 days per year. That period ends in late May.

According to the Associated Press, job cuts through DOGE have affected all government agencies, including the Internal Revenue Service, National Park Service, Consumer Financial Protection Bureau, and the Departments of Agriculture, Education, Energy, Health and Human Services, Homeland Security, and Veterans Affairs.

Agency staff said that in February, DOGE personnel pushed senior officials from the Department of Education out of their offices, rearranged furniture, and installed white noise machines to muffle their voices. US senators expressed concern that DOGE may have gained access to data on federal student loans held by tens of millions of borrowers.

Also in February, the Trump administration announced that USAID would cease to exist as an independent agency and would be absorbed into the State Department.

Meanwhile, a group of Democrats in the US House of Representatives is launching a concerted campaign to force Musk to leave the White House by May 30. They stated that Musk would not be allowed to return as a special government employee for a year without giving up his companies, including Tesla and SpaceX.