Tesla boss Elon Musk has pledged to “significantly” cut back his role in the US government after the electric car firm reported a huge drop in profit and sales for the start of this year.
Musk has led the newly created advisory body – the Department for Government Efficiency (Doge) – since last year, putting the world’s richest man at the heart of cutting US spending and jobs.
On Tuesday, Musk said he thought Tesla was the car company least affected by tariffs because of its localised supply chains in North America, Europe and China, but he added that tariffs were “still tough on a company where margins are low”.
“I’ll continue to advocate for lower tariffs rather than higher tariffs but that’s all I can do,” he said.
Musk said his “time allocation to Doge” would “drop significantly” from next month, adding he would spend only one to two days per week on it after accusations he has taken his focus off Tesla.
His political involvement has sparked protests and boycotts of Tesla cars around the world.
The tech boss said he would now “be allocating far more of my time to Tesla”, but suggested he would not leave the Trump administration completely, calling the work “critical” and pledging to stay on “as long as the president would like me to do so and as long as it’s useful”.
Musk blamed the boycott of Tesla cars on people who would “try to attack me and the Doge team”.
Temporary government employees, such as Musk, are normally limited to working 130 days a year which, if counted from the day of President Donald Trump’s inauguration, is set to expire late next month.
But it is unclear when Musk, who contributed more than a quarter of a billion dollars to Trump’s re-election, will step down completely.
On Tuesday, Tesla reported a 20% drop in car sales for the first three months of the year, compared with the same period last year, while profits fell more than 70%.
The company warned investors that the pain could continue, declining to offer a growth forecast while saying “changing political sentiment” could meaningfully hurt demand.
Shares in the company had shed about 37% of their value this year as of market close on Tuesday. They rose by more than 5% in after-hours trading following the results.
