Tesla CEO Elon Musk has announced plans to reduce his involvement in U.S. government advisory work amid growing financial challenges and international criticism.
In April 2025, Elon Musk revealed that he will significantly scale back his participation with the U.S. Department for Government Efficiency (known as DOGE). This decision comes shortly after Tesla reported a steep decline in both profit and vehicle sales at the start of the year. Musk, who has led DOGE since 2024, confirmed he would now dedicate only one or two days per week to the role—pending approval from the President.
Tesla’s financial troubles, paired with Musk’s political visibility, have triggered global protests and even led to boycotts of Tesla vehicles in several countries.
Trade Policies and Tariffs Create Manufacturing Headaches
Tesla continues to face external challenges, particularly related to U.S.-China trade tensions. Despite manufacturing its electric vehicles in the United States, Tesla relies heavily on Chinese-made components. Recent tariffs introduced by the Trump administration have increased costs and raised concerns about supply chain disruptions.
Tesla has issued warnings that ongoing political changes and uncertain trade policies could affect production stability and decrease consumer demand. Although Musk has pointed out that Tesla benefits from regional supply chains in Europe and Asia, the company’s tight profit margins make it vulnerable to cost increases.
“Even if all I do is speak up for lower tariffs, I’ll keep doing that,” Musk said during a public appearance this week.
Political Backlash Impacts Tesla’s Global Image
Musk’s deep involvement in government reform efforts has drawn criticism, particularly over budget cuts and federal job reductions linked to DOGE. His political alignment has sparked protests and reduced enthusiasm for Tesla’s brand in several markets abroad.
Earlier this month, Musk faced backlash after mocking White House trade advisor Peter Navarro. Navarro had publicly criticized Tesla’s production model, arguing the company simply assembles parts instead of manufacturing vehicles from scratch. Musk dismissed the claims and defended Tesla’s innovation-driven business model.
Industry Leaders Urge Musk to Refocus
Georg Ell, a former director of Tesla’s Western Europe operations, urged Musk to prioritize the companies where he delivers the greatest impact. “Musk is brilliant but tends to lead without seeking much input,” said Ell, now CEO of translation tech firm Phrase. “He could rebuild trust by returning focus to Tesla, SpaceX, and innovation.”
Despite setbacks, Tesla maintains that artificial intelligence will be key to its next wave of growth. However, investors have remained cautious. Tesla’s stock fell nearly 37% in 2025 before rebounding 5% in after-hours trading following the latest earnings call.
Tesla Faces Sales Decline and Strong Competition
According to recent financial reports, Tesla experienced a 13% drop in global vehicle sales this quarter—the sharpest in three years. This downward trend has alarmed analysts and shareholders alike.
Dan Coatsworth, an investment analyst, commented on the situation, saying, “Investor confidence hit rock bottom, and Tesla must now prove it can bounce back amid stiff competition and trade risks.” Coatsworth noted that unpredictable economic conditions and political scrutiny continue to weigh heavily on the company’s prospects.
A Time for Strategy and Stability
Tesla is at a critical crossroads. Between political controversy, financial strain, and increasing market competition, the company must now refocus its efforts to regain investor and public trust. With Musk stepping back from his government role, industry observers hope to see a renewed emphasis on innovation and stability in Tesla’s operations.
