Elon Musk has announced plans to scale back his role in the U.S. government as Tesla struggles with declining sales and profits. The CEO of Tesla, who has been leading the Department for Government Efficiency (Doge), stated that starting next month, he will only dedicate a couple of days each week to the position.

This decision comes after Tesla reported a 20% decrease in car sales and a 70% drop in profits for the first quarter compared to last year. Additionally, the company refrained from providing a growth forecast, citing the uncertainty surrounding the market and the potential impact of shifting political sentiments on future demand.

Musk’s involvement in U.S. politics—particularly his support for President Donald Trump, including a significant $250 million donation to Trump’s re-election campaign—has led to protests and boycotts of Tesla products globally. Critics argue that his political activities are detracting from his focus on the company.

Though temporary government roles like Musk’s are limited to 130 working days annually, Trump has expressed his desire to keep Musk in the role for as long as possible, stating, “I’ll keep him as long as I can.”

Musk, however, reassured stakeholders that he plans to allocate more time to Tesla moving forward, emphasizing that his government role remains important, but that he would continue to serve as long as it proves beneficial to the president and the country.

Tesla continues to face challenges, including the fallout from tariffs and global trade tensions, particularly between the U.S. and China. Musk acknowledged that although Tesla benefits from a diverse supply chain, tariffs still hurt companies with narrow profit margins.

Musk has also been at odds with other Trump administration officials. Recently, he referred to trade advisor Peter Navarro as a “moron” after Navarro criticized Tesla’s manufacturing process. This conflict has intensified the political spotlight on Musk and Tesla.

While Tesla is betting on artificial intelligence to fuel future growth, investors are becoming increasingly skeptical. Industry analysts are concerned about the drop in sales and the growing competition in the electric vehicle market.

Georg Ell, a former Tesla executive, believes that Musk’s focus on his core companies could help restore consumer confidence in Tesla’s products. “If Elon concentrates on what he’s truly good at, people will once again recognize the value of Tesla,” Ell commented.

Tesla’s stock has plummeted by 37% so far this year, although it saw a slight 5% increase in after-hours trading following its earnings report.

With the 2027 presidential election on the horizon, Musk’s continued involvement in U.S. politics raises questions about how long his influence will persist and what it might mean for Tesla’s future.