Elon Musk to scale back DOGE role amid Tesla's worst Q1, political fallout

Elon Musk’s time heading the Trump administration’s Department of Government Efficiency (DOGE) has come to an end.

His departure follows a series of setbacks, including legal challenges, political pushback, and financial losses, particularly for his electric vehicle company, Tesla.

Musk, who entered Washington as the world’s richest man with a mission to reduce the national debt by cutting government waste, faced increasing scrutiny as his time in government was marked by high-profile controversies. Despite the ambitious goals, his leadership of DOGE has led to mixed results, with several key initiatives either delayed or derailed.

Tesla under pressure

Tesla has faced significant challenges during Musk’s tenure at DOGE, including a 20 percent decline in sales in the first quarter of 2025 and a 71 percent drop in profits compared to the previous year. The company’s stock has also seen a sharp decline, down over 50 percent since December 2024. The drop has been attributed to several factors, including boycotts, growing competition, and concerns over Musk’s involvement in government.

Impact on DOGE, federal agencies

DOGE’s initiatives to streamline government operations have led to the dismantling of several agencies, including USAID, and attempts to eliminate the Consumer Financial Protection Bureau. While some cuts were celebrated as cost-saving, critics argue that many of the changes have been poorly executed, resulting in legal challenges and confusion within federal agencies.

Despite some claims of savings, estimates suggest DOGE’s impact on reducing federal spending was minimal, with experts noting that its "verified savings" accounted for less than 0.1 percent of the total federal budget.

Political, public reaction

Musk’s ties to the Trump administration have also sparked political controversy. His involvement in the Wisconsin Supreme Court race earlier this year, where his financial support did not lead to the desired outcome, highlighted the growing political risks to both Musk and his companies. Additionally, his perceived partisanship has raised concerns about Tesla’s future, particularly as political sentiment shifts.

Scaling back role at DOGE

Musk announced he would reduce his involvement with DOGE starting in May, limiting his time commitment to just one or two days per week. Tesla’s stock saw a brief increase following the announcement, but analysts remain cautious about the long-term impact on Musk’s businesses. His role as a "special government employee" restricts his involvement in the project to 130 working days per year, and his reduced schedule could extend his tenure with DOGE beyond the original end date of 2026.

Looking ahead

Despite the challenges, Musk remains one of the wealthiest individuals globally and continues to wield influence in Washington through his network of allies. While his time at DOGE has been marked by turbulence, the full effects of his political involvement may take years to fully assess. As Tesla faces increased competition and the ramifications of trade policies, Musk's future moves remain uncertain.