Elon Musk announced on Tuesday, April 22, 2025, that he will reduce his involvement with the Trump administration's Department of Government Efficiency (DOGE) starting in May to dedicate more time to Tesla. This decision coincides with Tesla reporting a 71% drop in first-quarter profits.
Tesla's Q1 2025 profits fell to $409 million, with revenues down 9% to $19.3 billion. The company cited trade policy unpredictability and demand as reasons for retreating from its 2025 guidance. Musk mentioned his work for DOGE is "mostly done" but plans to dedicate one to two days a week to government matters.
Tesla is still targeting the first half of 2025 for launching new, more affordable vehicles, though reports indicate a delay of "at least months" for the launch of the lower-cost Model Y in the US. The company aims to produce 250,000 units of the new model in the US by 2026. Despite these challenges, the launch of the Robotaxi service in Texas remains on track for June 2025.