Tesla CEO Elon Musk announced on Tuesday that he intends to shift his attention back to the electric vehicle company, although he said he would continue working in government as long as President Trump needs him. Musk, serving as a special government employee (SGE), is limited to working 130 days a year in that capacity. With about 36 weeks remaining this year, Musk’s schedule could place his total days in government service between 126 and 162.
Tesla investors have long urged Musk to prioritize the automaker and bring to life his ambitious plans, including autonomous taxi fleets, humanoid robots, and fully unsupervised self-driving technology. During an earnings call with analysts on Tuesday, Musk agreed to these calls, promising to dedicate more time to Tesla and scale back his involvement with the Department of Government Efficiency (DOGE).
“Probably starting next month, in May, my time allocation at DOGE will drop significantly,” Musk stated. “I’ll have to continue doing it. I think we have the remainder of the President’s term just to make sure that the waste and fraud that we stopped does not come roaring back, which it’ll do if it has the chance.”
Musk further clarified he would spend “a day or two per week on government matters for as long as the President would like me to do so, as long as it is useful.” However, he made it clear that his main focus would soon return to Tesla. “But starting next month, I will be allocating far more of my time to Tesla now that the major work of establishing the Department of Government Efficiency is done,” Musk declared.
Notably, Musk did not directly address the restriction on his government role as an SGE, which legally caps his participation at 130 days over a calendar year. To comply, Musk must carefully manage his time, especially since he has already logged about 90 days as an SGE. With 36 weeks left in the year, spending one or two days weekly could push him into a range of 126 to 162 days, risking a breach of the rules.
The SGE designation permits Musk to maintain leadership roles in private companies without undergoing the public financial disclosures expected from full-time government employees. Besides his leadership at Tesla, Musk is also deeply involved with other companies he founded, including SpaceX, X (formerly Twitter), the Boring Company, Neuralink, and xAI. Generally, individuals assuming government roles resign from their private sector positions, but Musk’s unique designation allows him to avoid that.
The White House has not yet responded to requests for comment regarding Musk’s government role and how it aligns with the rules.
Despite some unanswered questions about Musk’s time spent assisting the Trump administration, Tesla shareholders reacted positively to his renewed commitment to the company. After Musk’s comments—widely covered in the media—Tesla’s stock surged more than 5% during after-hours trading.
This surge came even though Tesla posted another lackluster quarter financially, disappointing investors once again. The company reported drops in operating income, net income, and operating margins. Revenue fell 9% year-over-year to $19 billion, although energy revenues saw a 67% increase, reaching $2.73 billion. Tesla’s cash reserves also grew, rising 38% year-over-year to about $37 billion.
Tesla’s shareholder base, particularly its large community of retail investors, voiced growing concern over Musk’s divided focus. Before the quarterly earnings call, Tesla’s investor relations team collected questions from shareholders. Of the 161 questions focused specifically on Musk, the top three came from some of the largest retail investors, all expressing anxiety over his involvement in government work.
One investor holding about 88,000 Tesla shares wrote, “Boycotts, protests, vandalism, negative headlines, and a stock slide have been sparked by Elon Musk’s participation in changes to U.S. gov’t services & employment. Is the Tesla board discussing whether their CEO should focus fully on Tesla and leave gov’t to elected politicians?”
Another concerned investor, who owns 365,000 shares, asked, “How is the company planning to deal with the impact of Elon’s partnership with the current administration?”
The third most popular question, which also had the third-highest number of upvotes from other shareholders, pressed the company further: “With Elon’s involvement with the federal government the Tesla brand has been under attack, more so than usual. What steps are the company taking to alleviate these attacks and educate the public about the benefits of Tesla?”
The questions highlight a deep worry among Tesla’s investors that Musk’s government activities could further damage Tesla’s public image and stock performance. While Musk’s work on government reform has been praised by some, critics argue that it has made Tesla a bigger political target than ever before, adding pressure to an already volatile stock.
Although Musk’s commitment to spend more time at Tesla was welcomed news, it remains uncertain how he will balance his ambitious automotive goals with his continued government role. Some investors fear that even a limited commitment to political work could continue to weigh on Tesla’s reputation and financial results.
Nonetheless, many view Musk’s promise to pivot his focus back to Tesla as a necessary step toward achieving the company’s ambitious targets in technology innovation and expansion. His efforts are particularly vital now as Tesla faces intensified competition from traditional automakers entering the electric vehicle space and as regulatory scrutiny over self-driving technology grows.
For now, Tesla shareholders will be watching closely to see if Musk follows through on his promises. His ability to deliver on Tesla’s future technology—and not be sidetracked by his government service—could determine whether the company regains its former market strength or faces further instability ahead.