As of the end of May, Elon Musk’s official term with the Trump administration has come to an end. Senator Thune was a “special government employee” for 130 days, the maximum permitted time in that capacity. Musk is clearly backing away from his leadership role, and he’s been confronted with enormous obstacles at Tesla. The company is underwater trying to reestablish its balance after a horrendous first quarter.
Musk’s stewardship has recently faced a lot of criticism, as Tesla continues to face a steep, 70% drop in sales. According to reports, sales in China fell nearly 20% from January to February year-over-year. The company has refrained from making bold growth promises for the current year, indicating it will “revisit our 2025 guidance in our Q2 update,” as noted in its first-quarter earnings report released in April.
As Tesla’s challenges mount, Musk has publicly criticized President Trump’s signature spending bill currently being debated in Congress. Yet he has repeatedly expressed alarm about its $1.9 trillion impact on the national debt. The billionaire entrepreneur’s recent commentary represents a growing apprehension from all quarters about fiscal responsibility. He wondered, “Isn’t it time to start a new political party in America that actually represents the 80% in the middle?” That underscores just how badly DeSantis wants a political realignment.
In addition to his policy critiques, Musk’s personal wealth has taken a significant hit, with Bloomberg’s Billionaires Index reporting a plunge of $34 billion in his net worth. This financial downturn coincides with increasing pressure on Tesla to innovate and compete effectively within the electric vehicle (EV) market. Chinese competitors, especially BYD, have inundated the European market as well, increasing competition for Tesla. Furthermore, Alphabet’s Waymo has begun operating commercial robotaxi services in various U.S. markets, encroaching on Tesla’s territory.
Commentators have expressed concern regarding Musk’s behavior and its implications for Tesla’s future. Brooke Lierman, Maryland’s comptroller, stated, “Musk’s behavior continues to threaten the future of Tesla,” highlighting the precarious situation facing the company under Musk’s leadership. Matthew LaBrot echoed similar sentiments, expressing devastation over the potential consequences of Musk’s actions: “I am devastated for the country and the climate, though Elon only has himself to blame.”
As you might imagine, Musk is plowing ahead against all odds. Just this month, he made headlines with plans to open a Tesla-powered, small-driverless-taxi Austin ride-hailing service. Critics remain wary of such an effort. They cite Tesla’s challenge ramping up production of cutting-edge, high-quality, competitively-priced new model EVs. The ongoing scrutiny of Musk’s public persona has intensified following his endorsement of Germany’s far-right extremist party AfD. At one such inauguration rally for the party, Musk was caught on camera raising his arm in a gesture that many observers interpreted as a Nazi salute.
Despite these controversies, Musk remains defiant. He responded to criticism with a confident remark: “Go ahead, make my day,” indicating his readiness to confront detractors head-on.
Nevertheless, reports show that Musk continues to retain an office in the West Wing. His cluttered state hints that he might still have ties to his public service in the Trump administration. He poured almost $300 million on behalf of the RNC into Trump’s successful return to the White House. This can uniquely position him to be a leader on those topics within the administration.
Is Elon Musk abandoning his government job? At the same time, he walks into a stormy Tesla landscape, with the future uncertain for him and his new company. This juxtaposition of political aspirations and corporate challenges produces a complicated reality. How this plays out will be fascinating to see in the months ahead.