Elon Musk says he will step back from his controversial White House role as the unofficial head of the cost-cutting "Department of Government Efficiency" to focus more on his troubled Tesla car company.

Tesla sales have fallen by a staggering 50% in the first three months of the year as the backlash over Elon Musk’s role in the US government continues. Industry data shows sales of electric cars fell to just 36,000 units in the first quarter of 2025 in 27 European countries according to the European Automobile Manufacturers' Association.

The mainstream bullish case for Tesla has traditionally rested on three pillars: corporate leadership that basked in the aura of genius, U.S. government policies that incentivized electric vehicles and enthusiastic consumers who delivered strong car sales.