JAKARTA – Elon Musk, CEO of Tesla, has announced he will scale back his role as advisor at the US Department of Government Efficiency (DOGE) starting in May 2025, following accusations that he has neglected Tesla.

Musk stated that most of the work to "tidy up the government’s financial house" has been completed, allowing him to reduce his time commitment at DOGE to just one or two days per week. Nonetheless, he will continue serving as long as requested by President Trump.

Musk’s political involvement has sparked a wave of global boycotts against Tesla, which has dampened consumer demand. As quoted from BBC, Tesla’s vehicle sales plummeted by 20% year-on-year in the first quarter of 2025.

As a result, the company’s revenue dropped 9% to USD 19.3 billion—well below Wall Street’s expectations of USD 21.45 billion—while net profit plunged by 71% to USD 409 million.

However, Musk denied that the brand’s image is to blame. He cited global economic uncertainty as the primary factor. “Tesla is not immune to macro demand trends,” he said.

Tesla is also facing pressure from soaring import tariffs imposed by Trump on China, where many vehicle components are manufactured.

Despite these setbacks, Musk remains optimistic about Tesla’s future. He unveiled bold plans to roll out autonomous vehicles and Robotaxi services beginning mid-year.

“I’m confident that cars capable of letting you fall asleep and wake up at your destination will be available in many US cities before the end of the year,” he stated.

Meanwhile, analysts agree that Musk’s continued involvement with DOGE has tarnished Tesla’s brand and eroded public trust.

According to Wedbush Securities, Musk’s decision to remain in government may further damage Tesla’s reputation. On the other hand, a return to a full-time CEO role is seen as a potential path to recovery. (EF/ZH)