## Musk Defends DOGE Work Amidst Plunging Tesla Profits and Investor Concerns
Elon Musk, CEO of Tesla and SpaceX, has stated he intends to continue his involvement with the Department of Government Efficiency (DOGE) “for the remainder” of President Trump’s second term. This announcement comes as Tesla faces mounting pressure stemming from its weakening financial performance and growing concerns surrounding Musk’s political entanglements.
During Tesla’s quarterly earnings call, Musk revealed plans to reduce his DOGE responsibilities to “a day or two” per week, adding that he would maintain this level of involvement “as long as the President would like me to do so, and as long as it is useful.” However, this commitment arrives shortly after Tesla reported a dramatic 71% drop in profits compared to the first quarter of the previous year. The company itself acknowledged in a shareholder letter that “political sentiment” negatively impacted sales, exacerbated by increasing competition and ongoing tariff disputes initiated by the Trump administration.
Musk’s involvement with DOGE, an organization focused on streamlining government agencies – an effort he has described as feeding agencies “into the wood chipper” – has sparked widespread protests and criticism. These protests, coupled with other factors, have contributed to a growing sentiment that Musk’s political activities are detrimental to Tesla’s brand image and financial health.
Adding fuel to the fire, a prominent Tesla supporter on Wall Street recently warned of a “code red” situation, urging Musk to withdraw from his government role. The investor’s concerns reflect a broader anxiety that Musk’s attention is divided, and that his controversial political stances are alienating potential customers.
On the earnings call, Musk dismissed the protests as “paid for,” alleging, without providing evidence, that participants were either fraudulently compensated or recipients of government waste. He maintained that the “major work of establishing” DOGE is now complete, justifying his planned reduction in time commitment.
As a “special government employee,” Musk’s official capacity is technically limited to 130 days of work within a 365-day period. While the White House has yet to comment on the matter, the situation underscores the increasingly complex relationship between the tech mogul, the Trump administration, and the future of Tesla. The question remains whether Musk’s continued involvement with DOGE will further strain the company’s performance and investor confidence, or if he can successfully balance his political endeavors with his responsibilities at Tesla.
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