Musk says his time working for Trump administration will 'drop significantly' next month - as Tesla profits sink

Elon Musk has said the time he spends with Donald Trump's Department of Government Efficiency (DOGE) will "drop significantly" from May and he will allocate more time to Tesla.

It comes after first-quarter profits at Tesla sank as the company grapples with falling sales, partly due to President Trump's tariffs. As a special government employee, Mr Musk was limited to 130 days in his role at DOGE, which is primarily aimed at slashing federal spending.

In April, he dismissed reports suggesting he would leave his role in the coming months, calling the rumours "fake news". But the cuts, which included axing government jobs, have divided the country and prompted a backlash against his company, including protests and attacks on Tesla showrooms.

Donald Trump labelled the vandals "terrorists". Tesla said on Tuesday that quarterly profits fell by 71% to $409m (£306.77m) from $1.39bn (£1.04bn) in the first quarter of 2024.

Revenues were also well below forecasts, dropping 9% to $19.3bn (£14.5bn) between January and March. The company's share price has plummeted by more than 50% since reaching a record high in mid-December.

Share price plummets Tesla's value has tumbled following the financial market turbulence caused by the global trade war tariffs, competition from Chinese EV rivals and concern over Mr Musk's ability to give the firm the attention it requires. Mr Musk's role as chief executive of the company was among the most common questions shareholders were asking about in a question-and-answer portal ahead of an investor call on Tuesday evening.

As well as his role at the top of Tesla, he is also the CEO of space exploration company SpaceX and owns social media company X, formerly known as Twitter. Musk has 'lost focus' An early Tesla investor Ross Gerber said in a recent interview with Sky's Business Live that Mr Musk had lost his focus and was now too "divisive".

There has been no clear sign of improvement at Tesla as much-awaited updates on making affordable cars and developing driverless technology left some questions unanswered. Read more from Sky News:Could US agree UK trade deal?Impact of Trump's tariffs on MuskTesla sales slump across Europe Tariffs harming outlook Work on an affordable car remained "on track for start of production in the first half of 2025.