Tesla CEO Elon Musk plans to reduce the time he spends running the Department of Government Efficiency (DOGE) under President Donald Trump’s administration. This decision is connected with the drop of shares of Tesla by more than 40% since the beginning of the year. About this informs CNBC.
During the presentation of Tesla’s quarterly results, Musk said that he would continue to support the president through his work at DOGE:
“To make sure the waste and fraud we’re stopping doesn’t come back with renewed vigor.”
He added that he plans to continue devoting “a day or two a week” to government issues “as long as the president wants it.”
His comments followed the release of the company’s first-quarter financial report, which reported a 20% year-over-year drop in revenue and a 71% drop in net profit.
In addition to the already known challenges — growing competition from Chinese manufacturers and an outdated lineup of electric cars — Tesla also faced protests in the United States and Europe. The company’s image has also been hit by Musk’s close ties to Donald Trump and his public support for the right-wing populist Alternative for Germany party.
“The protests you will see there are very organized”, — noted Musk.
He also suggested, without providing any evidence, that some of the protesters may be connected to fraudulent receipt of funds or be recipients of unjustified state aid.
DOGE claims on its website that the cuts have saved $160 billion. However, these figures have been questioned and some of the largest claimed savings have subsequently been removed. During the same period, Tesla’s market capitalization fell by about $600 billion.
