According to a report from the Wall Street Journal, Tesla's (TSLA) board is searching for a new CEO to succeed Musk, although this was later denied by Musk and Tesla officials. Tesla's stock price has recently seen a decline, and the reality of a 70% profit reduction is putting pressure on Musk to reduce his time with DOGE.

In the latest earnings report, Tesla's profits for Q1 2025 decreased by 71% year-on-year, and the number of cars delivered fell by 13%, indicating intensifying competition in the electric vehicle market. Musk emphasized that he will focus more on Tesla's business development, announcing a significant reduction in his time dedicated to government affairs.

Musk was once viewed as a key driver of U.S. government efficiency reforms, but his initiatives within DOGE have faced internal resistance and legal challenges, diminishing his influence within Trump's cabinet. The challenges Tesla faces stem not only from market competition but also from corporate governance and political pressures, which could impact future operational directions.