Elon Musk said he is ready to leave DOGE next month, Tesla shares soared in anticipation.

On Tuesday, Elon Musk stated that he is preparing to leave Washington starting in May, just as Tesla is trying to recover after a difficult financial quarter. Speaking during Tesla's earnings call, Elon confirmed that his work at the Efficiency Department of President Donald Trump (DOGE) will be reduced "significantly" next month. The company's stock surged nearly 5% in after-hours trading as soon as these words came out of his mouth. Elon told investors that although he is stepping back, he will still support DOGE "to ensure that the waste and fraud we are preventing does not happen again." He also stated that he will continue to dedicate "one or two days a week" to government work "as long as the president wants me to do so." This comment was made just minutes after Tesla reported a 20% drop in car revenue and a 71% decrease in net profit in the first quarter. Elon Musk's political influence is declining after he spent nearly 300 million dollars to support Trump. According to the Associated Press, Elon created DOGE after investing nearly 300 million dollars in Trump's 2024 campaign, helping him return to the White House and making Elon the country's "First Friend," as he still calls himself. In the past three months, DOGE has targeted several agencies including the IRS, National Park Service, Consumer Financial Protection Bureau, and the Departments of Agriculture, Education, Energy, Health and Human Services, Homeland Security, and Veterans Affairs. DOGE has also pursued federal agencies responsible for overseeing Elon’s businesses—specifically, the Securities and Exchange Commission, the Federal Aviation Administration, and the National Highway Traffic Safety Administration. These offices have witnessed significant job cuts under DOGE while Elon was still in government. The White House labeled Elon as a "special government employee" in February, a legal designation that eases ethical rules and lowers barriers for disclosing conflicts of interest. The Department of Justice stated that this designation is for those who work 130 days or less in a calendar year. By the end of May, the Trump administration will reach 130 days, meaning the opportunity for Elon to work in the federal government will no longer exist unless reappointed under a different title. The market value of Tesla has plummeted at the same time that DOGE is active. The company has lost about 600 billion dollars in market capitalization so far. At the same time, DOGE's website—last updated on Sunday—claims that they have saved the government 160 billion dollars. But not everyone believes those numbers. DOGE has removed some of its most extreme savings estimates from the website after facing opposition. Tesla is still receiving fierce reactions. Elon also mentioned the protests aimed at Tesla, which have erupted in both Europe and the United States. In the call, he blamed "well-organized" protest groups for the backlash and claimed - without evidence - that some people showed up because they "received fraudulent money" or were "generous waste recipients." He did not elaborate further. The protests have added fuel to the growing public anger over Elon’s political relationships, including his open support for Germany's far-right AfD party. Those relationships have undermined trust in the Tesla brand, particularly abroad. Tesla is also struggling with outdated electric vehicle models and increasing competition from Chinese automakers. The company reported its worst quarterly earnings since 2022, and its stock has dropped 41% just in 2025. Despite those numbers, the stock soared after Trump announced on Tuesday that he has no plans to dismiss Federal Reserve Chair Jerome Powell, a move that boosted investor confidence in the short term. Inside government offices, DOGE employees have done more than just tidy up. In February, employees at the Department of Education reported that DOGE staff had pushed senior officials out of their offices, rearranged furniture, and installed white noise machines to block conversations. This chaos has raised alarms on Capitol Hill. U.S. senators have warned that DOGE may have accessed federal student loan data related to tens of millions of borrowers. Every move Elon makes within the government—every agency he touches—is being scrutinized more closely as he prepares to step back. Whether the cuts from DOGE remain or not, one thing is clear: Wall Street believes Tesla may have a better chance if Elon spends more time in the office and less time smashing things up in DC.