Elon Musk has announced he will reduce his involvement with the Department of Government Efficiency, shifting his attention back to Tesla following a sharp decline in the company’s quarterly performance.
Musk stated he will now dedicate only one to two days a week to the federal initiative, which was created to streamline government operations. The move comes after Tesla reported a 71% plunge in quarterly profit and a 9% dip in revenue, raising concerns among shareholders and analysts.
His leadership role in the government program had drawn public scrutiny and sparked investor unease, especially as Tesla faced mounting pressure in a competitive electric vehicle market. Musk emphasized that the program is now running on stable footing and can continue with less direct oversight from him.
Tesla’s stock responded positively to the announcement, with markets signaling cautious optimism about Musk’s renewed focus. Industry analysts believe the shift could help stabilize Tesla’s strategy and investor confidence during a critical period for the company.