Elon Musk will take a significant step back from the Department of Government Efficiency (DOGE) after Tesla profits plummeted. 

The electric car company reported a huge drop in profit and sales for its first quarter, with its net income down 71% from the previous year. 

A company earnings report released on Tuesday showed that total revenue decreased by 9% compared to last year, and revenue from car sales dropped by 20% to $14 billion. 

Musk will take a step back from DOGE to focus on Tesla after profits plummeted

Image credits: Win McNamee / Getty Images

Musk, who is the de facto leader of DOGE, told Tesla investors on Tuesday that he would be scaling back his work with the department to possibly one or two days a week.

“I think starting probably next month in May, my time allocation to those will drop significantly,” he said during a call. 

Musk can only work for the federal government for 130 days because of his private-sector roles.

Musk also urged investors “to look beyond the bumps and potholes immediately ahead of us” and said he would continue DOGE work to ensure “the waste and fraud that we stopped does not come roaring back.” 

The Tesla and SpaceX CEO addressed tariffs, saying any tariff decision “is entirely up to the president of the United States.”

He described Tesla as being the “least-affected car company with respect to tariffs” and said the company was in a good position because of its localized supply chains. 

President Donald Trump imposed a 25% tariff on all imported cars to the U.S.

Image credits: The White House

While Tesla isn’t subject to this because it manufactures in the U.S., the company does source materials from China, Mexico, and Canada. 

Musk said Trump “will listen to my advice” but it’s up to him to make tariff decisions.

“I’ve been on the record many times saying that I believe lower tariffs are generally a good idea,” he added.

The report fell far short of analysts’ expectations and came amid protests against the company due to Musk’s involvement with the new administration. 

Tesla dealerships nationwide have seen protests, partially resulting in shares to decrease by more than 40% for the year, AP reported.

Tesla has been subjected to several spates of vandalism and protests due to Musk’s government involvement

Image credits: The White House

On March 29, protestors gathered in a protest at over 250 dealerships worldwide in what was called the “Tesla Takedown Global Day of Action.”

Musk has claimed people are being paid to protest outside Tesla dealerships.

There have also been several instances of vandalism on Tesla cars since Trump took office earlier this year.

Several people have been charged in connection with recent attacks on Tesla car dealerships and charging stations. Some face lengthy prison sentences.

Owen McIntire, a 19-year-old college student, appeared in court on Friday and was charged with arson at a Tesla business in Kansas City, Missouri. McIntire could get up to 20 years in jail.

Amid the vandalism, U.S. Attorney General Pam Bondi issued a warning: “Let me be extremely clear to anyone who still wants to firebomb a Tesla property: You will not evade us. You will be arrested. You will be prosecuted. You will spend decades behind bars. It is not worth it.”

“This is the second arrest this week of a suspect charged with targeting Tesla, more proof that the FBI will not stand for these destructive acts,” FBI Director Kash Patel added.