Tesla's Musk pledges more time to the company amidst sales slump

Tesla CEO Elon Musk has confirmed that he will soon reduce his involvement in the US government, specifically in his role in the Department for Government Efficiency (DOGE). Musk, who has been a key figure in the Trump administration's efforts to cut spending and jobs, will scale back his government duties to one or two days per week.

Musk's political involvement has drawn a lot of criticism and even led to boycotts of Tesla vehicles globally. Temporary government positions like Musk's typically have a 130-day annual limit, which is set to expire soon. However, it remains unclear when Musk will fully step down. President Trump has expressed a desire to keep Musk in his administration, and Musk himself has indicated he will remain as long as the president wishes.

The change in Musk's focus follows Tesla's recent financial report, which revealed a decrease in car sales and drop in profits for the first quarter of the year. The company has warned investors that these challenges may persist, citing "changing political sentiment" as a potential factor in reduced demand. Musk attributed the boycotts to those who "try to attack me and the Doge team."

Tesla's financial performance has been impacted by Trump's tariffs on Chinese goods. While Tesla assembles vehicles in the US, it relies on many Chinese-made parts. The company's quarterly update mentioned that a "rapidly evolving trade policy" could disrupt its supply chain and increase costs. Musk is supportive of lower tariffs despite clashing with other Trump administration officials, such as trade advisor Peter Navarro.

Industry experts suggest that Tesla's future success hinges on Musk's ability to refocus on the company. A former Tesla executive Georg Ell, said it's important for Musk to surround himself with diverse opinions and concentrate on Tesla's product quality. Investors are also concerned about increasing competition and potential supply chain disruptions due to ongoing trade tensions. Tesla's reliance on artificial intelligence for future growth has yet to convince many investors.

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