Elon Musk has said the time he spends with Donald Trump’s Department of Government Efficiency (DOGE) will “drop significantly” from May and he will allocate more time to Tesla.

It comes after first-quarter profits at Tesla sank as the company grapples with falling sales, partly due to President Trump’s tariffs.

As a special government employee, Mr Musk was limited to 130 days in his role at DOGE, which is primarily aimed at slashing federal spending.

But the cuts, which included axing government jobs, have divided the country and prompted a backlash against his company, including protests and attacks on Tesla showrooms, prompting Donald Trump to label the vandals “terrorists”.

Tesla said on Tuesday that quarterly profits fell by 71% to $409m (£306.77m) from $1.39bn (£1.04bn) in the first quarter of 2024. Revenues were also well below forecasts, dropping 9% to $19.3bn (£14.5bn) between January and March.

The company’s value has plummeted since reaching a record high in mid-December. Since then, Tesla’s share price has fallen more than 50%.

Tesla’s share price has tumbled following the financial market turbulence caused by the global trade war tariffs, competition from Chinese EV rivals and concern over Mr Musk’s ability to give the firm the attention it requires.

Mr Musk’s role as chief executive of the company was among the most common questions shareholders were asking about in a question-and-answer portal ahead of an investor call on Tuesday evening.

As well as his role at the top of Tesla, he is also the CEO of space exploration company SpaceX and owns social media company X, formerly known as Twitter.

Musk has ‘lost focus’

An early Tesla investor Ross Gerber said in a recent interview with Sky’s Business Live that Mr Musk had lost his focus and was now too “divisive”.

There has been no clear sign of improvement at Tesla as much-awaited updates on making affordable cars and developing driverless technology left some questions unanswered.

Work on an affordable car remained “on track for start of production in the first half of 2025”, Tesla’s financial results said, but no details on a prototype were given.

Production of Tesla’s self-driving robotaxi, named Cybercab, is scheduled to start in 2026.

Tariffs harming outlook

Uncertainty was also evident in the outlook statement, which pointed to the harm tariffs could pose to the business.

“It is difficult to measure the impacts of shifting global trade policy on the automotive and energy supply chains, our cost structure and demand for durable goods and related services,”

“The rate of growth this year will depend on a variety of factors, including the rate of acceleration of our autonomy efforts, production ramp at our factories and the broader macroeconomic environment”.

While Teslas are made in the US, there are also factories in China and Germany. Under the tariff regime, those car parts are subject to additional taxes when they enter America.

A bag belonging to the US Homeland Security Secretary was stolen on Sunday night – containing thousands of dollars in cash and an ID card that gives access to secure agency buildings.

Kristi Noem was eating at a Washington DC burger restaurant with family when a man in a face covering sat near her table and stole her purse, according to two people familiar with the theft.

Officials confirmed the theft to Sky News’ US partner NBC News on Monday.

The cabinet secretary was carrying $3,000 (£2,243) in cash because “her entire family was in town including her children and grandchildren”, Department of Homeland Security spokesperson Tricia McLaughlin told NBC.

“She was using the withdrawal to treat her family to dinner, activities and Easter gifts.”

Just before 8pm, a man wearing an N-95 mask walked into the restaurant and up a few stairs to where Ms Noem was eating dinner.

He sat near her table and moved his chair close to hers before sliding her purse toward him with his foot, according to surveillance footage viewed by law enforcement, the sources said.

Within minutes, the man had Ms Noem’s purse under his jacket and walked out of the restaurant.

At least two on-duty members of the US Secret Service were in the restaurant – between Ms Noem and the front doors – according to a source who witnessed the meal.

They said the restaurant wasn’t very busy at the time.

The purse also contained credit cards, blank cheques, her passport, driver’s licence and a set of keys.

It’s unclear whether Ms Noem was specifically targeted – and investigators are looking into whether the man knew who the purse belonged to.

When asked about the incident, Ms Noem said: “I don’t think I can comment on it yet. It’s not resolved yet.”

She said the Secret Service was aware but said she hadn’t spoken to agency personnel about what happened.

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Ms Noem is a vocal supporter of Donald Trump’s policies of deporting undocumented immigrants and fortifying the US-Mexico border to slow illegal migration.

Harvard University is suing Donald Trump’s administration after it rejected a list of demands from the White House and had $2.2bn (£1.6bn) of government funding frozen.

The Ivy League institution, in Cambridge, Massachusetts, is accused of ideological bias and allowing antisemitism during campus protests last year against Israel’s war in Gaza.

The Trump administration, which began a review of $9bn (£6.7bn) in federal grants for Harvard in March, had demanded the university screen international students for those “hostile to the American values” and the end of all diversity, equality and inclusion programmes.

The university’s president Alan Garber has remained defiant and rejected those and other reforms, prompting the US President to question whether the university should lose its tax-exempt status.

Mr Trump accused the institution of pushing what he called “political, ideological, and terrorist inspired/supporting ‘Sickness?'” in a post on Truth Social.

Harvard has seen student-led protests in recent days calling on the institution to resist interference by the federal government.

Harvard’s lawsuit, filed in Boston, described the research funding freeze as “arbitrary and capricious” and violating its First Amendment rights.

“The government has not – and cannot – identify any rational connection between antisemitism concerns and the medical, scientific, technological, and other research it has frozen that aims to save American lives, foster American success, preserve American security, and maintain America’s position as a global leader in innovation,” the court documents revealed.

On Monday, White House spokesperson Harrison Fields issued a defiant response to the lawsuit: “The gravy train of federal assistance to institutions like Harvard, which enrich their grossly overpaid bureaucrats with tax dollars from struggling American families is coming to an end.

“Taxpayer funds are a privilege, and Harvard fails to meet the basic conditions required to access that privilege.”

The Trump administration has also paused some funding for universities including Columbia, Princeton, Cornell, Northwestern and Brown over the campus protests.

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But protesters, including some Jewish groups, say their criticism of Israel’s military actions in Gaza is wrongly associated with antisemitism.

Mr Garber said the institution would continue to fight hate and fully comply with anti-discrimination laws.

The American Council on Education, a non-profit organisation with more than 1,600 member colleges and universities, supported the legal action by Harvard.

“It has been clear for weeks that the administration’s actions violated due process and the rule of law. We applaud Harvard for taking this step.”