New York: Tesla CEO Elon Musk announced a significant reduction in his involvement with the Trump administration's Department of Government Efficiency (DOGE) starting in May. This decision comes as Tesla confronts financial and reputational challenges.

According to Anadolu Agency, Musk shared during a conference call with investors that his time allocation to DOGE will decrease significantly. The DOGE initiative, aimed at cost-cutting, has faced controversy due to lawsuits and accusations of accessing voter data and reducing essential public programs.

Despite scaling back his involvement, Musk emphasized that he would continue to allocate some time to government issues, stating he would spend one to two days a week on such matters.

Following Musk's announcement, Tesla's stock rose by 4%, although it remains down 41% year-to-date. The company's Q1 earnings revealed a 9% revenue drop and a 71% decline in profits, which missed Wall Street forecasts.

Analysts, including Adam Crisafulli of Vital Knowledge, suggest that Musk's political activities have impacted his brand. Tesla also faces intense competition in the EV market and challenges from Chinese tariff retaliation, which affected orders in mainland China.