How Elon Musk drew flak over both Tesla and DOGE as he now prioritises the former

Elon Musk has announced plans to significantly reduce his involvement with the US government's Department of Government Efficiency (DOGE) to concentrate more on Tesla.

This move follows Tesla's first-quarter report revealing a significant 71% decline in profits, amounting to $409 million, and a 9% drop in revenue to $19.3 billion.

Musk's involvement with DOGE, an initiative launched by US president Donald Trump to streamline federal operations, has been met with controversy. Musk who was assigned to cut federal spending, shook Washington, as he laid off thousands of government employees and shut down several foreign aid programmes. But his cost-cutting spree unsettled key institutions and triggered public backlash.

His stern email ordering federal employees to list five accomplishments from the past week has reportedly been ignored — and even mocked — by many across government departments.

Furthermore, Musk's dual raised concerns about potential conflicts of interest. His position in DOGE has granted him access to sensitive federal data and influence over government operations, leading to legal challenges and questions about the appropriateness of his involvement in both public and private sectors.

His leadership in DOGE has been linked to public protests, including vandalism at Tesla facilities, and a decline in Tesla's stock value. Analysts suggest that Musk's political activities have negatively impacted Tesla's brand image and sales, particularly in markets sensitive to political affiliations.

Trump’s tariffs on China also added pressure on Tesla. While the company assembles vehicles in the US, many of its parts come from China. Tesla warned that the “rapidly evolving trade policy” could disrupt its supply chain and increase costs.