• Elon Musk will reduce his role in the Department of Government Efficiency (DOGE) to focus on Tesla.
• Tesla reported a 71% drop in profits for Q1 2025, raising concerns among investors.
• The stock price surged by as much as 20% following Musk's announcement to shift his focus back to the automaker.
• Political controversies linked to Musk’s role have contributed to brand damage and declining vehicle sales.
• Despite challenges, Musk remains optimistic about Tesla’s future plans, including autonomous driving initiatives.

Elon Musk has announced he will significantly scale back his role with the Department of Government Efficiency (DOGE) starting in May, a move welcomed by Tesla investors amid troubling financial results for the automaker. Following a dismal first quarter showing a 71% drop in profits and a 9% decline in revenue, Musk's intention to refocus on Tesla was seen as necessary to restore confidence in the brand, according to India Times and The Hill.

Musk informed analysts during Tesla's recent earnings call that he intended to allocate less time to DOGE due to the considerable impact that his role has had on Tesla's public image and profitability. He stated that his time "allocation to DOGE will drop significantly" to just one or two days per week, emphasizing that "the major work of establishing DOGE is done," according to multiple reports, including Channel News Asia and HuffPost.

The announcement positively impacted Tesla's stock, which surged approximately 20% following the news, marking a significant rally for shareholders concerned about Musk's divided focus. Analysts have suggested this could represent a pivotal moment for Tesla, as Musk's political involvement had been a source of controversy, leading to boycotts and protests against the company, as highlighted by sources such as Business Insider and India Times.

Experts have pointed out the considerable damage Musk's political role has caused to Tesla's brand, especially in markets like Europe, where sales reportedly fell by 45% in the EU and even more significantly in major countries like Germany. These drops have been attributed to public backlash against Musk's governmental policies, which included deep cuts to federal spending, as detailed by Bangkok Post and Dawn.

Besides addressing immediate investor concerns, Musk remains committed to Tesla's future strategies, including advancements in autonomous vehicle technology and the anticipated launch of a new Robotaxi service in Austin by June. Musk's statements reflected a positive outlook despite underlying structural challenges within the market, as reported by The Hill and India Times.