Musk’s White House Ambition Dashed

Elon Musk’s whirlwind romance with Washington has ended, at least for now.

After a four-month stint and what’s likely a hefty investment of time and resources, the world’s richest man is stepping away from the White House, leaving behind a trail of controversy and, potentially, a mounting to-do list back at Tesla.

A Quiet Departure and a Hint of Regret

Musk has formally ended his brief “political career,” announcing on X (formerly Twitter) that his tenure as a Special Government Employee had concluded. White House officials confirmed his departure Wednesday evening.

In a departure that was, understandably, brief, Musk kept it simple. “Appreciate the opportunity to work with President Trump and reduce waste. DOGE (Department of Government Efficiency) mission will only grow stronger with time,” was his official statement, offering a nod to his former role.

Musk’s role as a “Special Government Employee,” effectively a temporary advisor, allowed him to operate without the stringent financial disclosure and conflict-of-interest rules that bind most federal officials. This arrangement was likely crucial, as Musk juggled the demands of running Tesla, SpaceX, xAI, and other ventures valued in the hundreds of billions, even trillions, of dollars.

However, the ‘special’ status came with a clock. With a cap of 130 working days per year, his term coincided with the end of the initial Trump administration. While the official line is that his time is up, the door remains ajar, at least in theory, for a return engagement.

Over the past four months, Musk, as head of the Department of Government Efficiency, or DOGE, occupied a dedicated office within the White House – a small space that nevertheless afforded him unprecedented access to the highest echelons of power. Frequent meetings with President Trump, insights into policy decisions, and even participation in cabinet meetings became part of his routine.

The “Efficiency” Czar: Cutting Costs, and Cutting Ties

So, what exactly *did* Musk do in those 130 days? At the helm of DOGE – a special initiative championed by the Trump administration – he was tasked with auditing federal agencies, with the goal of slashing budgets and eliminating waste. This mirrored a campaign promise.

Musk, in the initial stages, was seemingly eager to wield his power. He initially targeted a proposed$2 trillion cut to the federal budget. At the Conservative Political Action Conference (CPAC) in February, President Milei of Argentina gifted Musk with a chainsaw, as an encouragement to “cut” deep within government bodies.

With the support of the former president, Musk enjoyed an extraordinary degree of influence early on in the DOGE initiative.

Viewed as a shadow president, Musk exerted pressure across various government departments to achieve budget cuts and staff reductions, even to the point of demanding weekly work reports (a requirement that was discontinued just this week).

Musk has often employed rapid-fire, sometimes blunt, cost-cutting strategies in his companies.

The government, however, proved to be a far more resistant force than his corporate empires ever were.

Controversy, and The Backlash

Musk’s brash approach clashed with established power structures, and reports suggest heated exchanges with officials, including Secretary of State Rubio and Treasury Secretary Besent, among others. Senior officials weren’t thrilled with the aggressive style of a Special Advisor without formal authority.

Furthermore, DOGE’s actions led to the potential displacement of over 260,000 federal employees along with the closure or reorganization of departments such as the International Development Agency, along with significant cuts to research funding. Including government contractors, more than 1 million people could have lost their jobs or financial support as a result of DOGE.

DOGE itself became the eye of a storm. During his most ambitious moments, Musk often made findings of corruption on X, many proving to lack sufficient evidence, or to be vastly exaggerated. This damaged the credibility of Musk and the DOGE initiative.

For example, DOGE claimed that the Social Security Administration (SSA) was paying benefits to individuals over the age of 200. However, it was later shown that the DOGE team did not understand how the SSA recorded records. DOGE has has also inflated cost savings; for example, a contract worth $8 million between ICE, the Immigration & Customs Enforcement, was being recorded as an $8 billion savings.

When challenged by various media and government agencies and investigators, DOGE has quietly removed numerous savings claims from its website, including 600 contracts, grants, and lease agreements amounting to billions of dollars, often removing them overnight, without explaining the rationale.

Most importantly, the cost-cutting, particularly the layoffs, brought about serious conflicts of interest. Several government departments both directly regulate Musk’s companies, such as Tesla, X, and Space X, and also give the companies government money.

For illustration, DOGE cut staff from the National Highway Traffic Safety Administration (NHTSA), impacting the organization’s vehicle safety inspection efforts, including investigations of Tesla accidents.

The potential conflicts are not limited to Musk himself. Several employees have also been found to own stocks, and thus have conflicts of interest. Some DOGE employees invested in companies that were aided by projects that were cut from the Department of Treasury and the Consumer Financial Protection Bureau (CFPB).

The Bottom Line: Political Fallout and a Fiscal Disconnect

So, what about the results of all this upheaval? Musk initially aimed for $2 trillion in spending cuts, but, at the time of his exit, DOGE had saved just $160 billion in total.

In addition, DOGE resulted in significant costs and lawsuits. Every time a cut would be enacted, it would result in immediate lawsuits, and a high level of time commitment by the government and its staff.

Was Musk pleased with the outcome? Seemingly not. While DOGE was making reductions of $160 billion, the new Trump administration passed the Omnibus Bill, a piece of financial legislation which has lead to a major government deficit.

Musk said in an interview with CBS news, before he departed from the administration, that he was disappointed to see the huge increase in the government’s deficit. The government’s legislation has undermined all the hard work of the DOGE team. Musk gave indications prior to his departure, that he felt the criticism of DOGE was excessive, as well as what had happened to his own firm.

He also lamented that the process of reducing the size of the government was much harder than he had anticipated. He said, “The nature of federal bureaucracy is much worse than I expected. I thought I knew of these problems, but it is hard to improve things in Washington.”

Notably, Trump has not commented on Musk’s departure.

Despite the many social media posts that the president has published recently, there are no mentions of Musk. In addition, the media has been reporting that since April, Trump has not publicly mentioned Musk on social media.

A Cooling Bromance?

The dynamic between the two individuals is intriguing. Musk has helped to supply Trump’s recent financial successes. Also, he was a direct contributor of Trump’s most recent election victory. Although the two men have not shown any sign of disagreement, their relationship is not as strong as it previously had been. This is a huge contrast, as they were quite demonstrably close just two months ago.

Here’s a look back: In the beginning of February, Musk professed his feelings for Trump on X; after this, the two met with Fox News, and provided mutual admiration; in March, Trump spoke in the State of the Union. He made sure to give thanks to Musk, and was met with applause. Trump also changed the White House into a Tesla sales show room, and announced he had procured a Tesla, indicating his support.

Presently, Trump has been quiet on the subject. It appears that the Trump team and Republicans are distancing themselves from Musk. Recently, Musk has been labeled a “scapegoat,” because of DOGE’s unpopular work. In months, he has become one of the most unpopular public figures in the US. And his firm, Tesla, will be affected as a result.

An April poll by ABC showed a significant drop in Musk’s popularity. His approval rating stood at 35%, while his disapproval rating was nearly 60%. Additionally, a subsequent Silver Bulletin survey states that 53.5% of people hold a negative view of him, while his net favorable rating -14.4%.

Even though DOGE had full support by Trump, the people harmed by it, specifically in the Republican States which are not as economically developed, have lashed out at Musk. The protests, and vandalism of Tesla shops and automobiles have been intense

The US government’s investigation, and the arrests, however, do not affect the number of sales in the market, and the public has the opportunity to show how displeased they are with Musk.

Tesla’s Troubles: A Perfect Storm

In Q1, Tesla had a significant drop in American sales. According to estimates from Cox Automotive, Tesla delivered 128,000 vehicles this year in the US, an 8.6% decrease. The sales increased in April incrementally, however, an 13% decrease overall occurred.

In California, Tesla has a reduction of 15.1% in the Q1 registration. Other electric vehicles increased by 35%. Tesla’s market share in the State dropped from 55.5% to 43.9%. Also, Musk’s relations with the California government are now very weak.

Tesla’s situation is bad in both China and Europe; the European market has gone through a collapse. This is connected to Musk’s controversial words and actions, and the firm is between different models. The newer models are not fully delivering, and the market is growing more competitive.

In the past quarter, in Tesla’s financial reports, there has been a significant decline. The global delivery decreased by 13%. This has not happened in over 3 years. When the units delivered were recorded, there were 26,000 surplus units. The inventory pressures are increasing. Revenue for the year was 9% less; the revenue in auto sales was 20% less. The net profit decreased by 71%; the operating profit decreased by 66%.

Musk, who has been in the political arena, and who has been embroiled in controversy, has seen his brand, Tesla, suffer as a result. With the market declines, he has said he’ll dedicate more time to running Tesla.

In the analyst meeting after the financial report, Musk said that he will reduce his time in Washington, and focus more on running Tesla. However, the investors are not satisfied, and are hoping for a more certain commitment.

Work Hours Tied to Executive Pay

A group of large pension funds delivered a letter to the Tesla board of directors, requesting that Musk work in the corporation for 40 hours per week at minimum, and calling for corporate governance adjustments. The institutional investors include the New York City Comptroller’s Office, USA Teacher’s Union, Academy Pension, and 12 other long-term institutional investors, accounting for nearly $950 billion.

The group of institutional investors, and the group has specified, that Musk’s pay be connected to his minimum operating hours working at Tesla. They are hoping that this work can be completed for at least 40 hours per week. In light of Musk working for four private companies and his foundation, the board has to make sure that Tesla is NOT relegated to a minor assignment.

This process would be the most effective way to enact some accountability for Musk. Musk’s multi-million compensation plans have been denied previously by the judge of Delaware. Tesla’s directors have established a special commission, and this team will be conducting studies regarding compensation alternatives for Musk.

Musk said last week that he will decrease his political donations, and, in a post to social media, he said he would be setting more time aside for his commercial interests. He wrote: “I’m going to be back to being a 24/7 workaholic, sleeping in the meeting rooms, server rooms, and in the factories. I have to concentrate on X, xAI, and Tesla, because we are about to unveil key technologies.”

This is no pretense, and his business empire is at its most critical juncture. Tesla plans to debut their all-autonomous driving cars in Austin next month. Musk has said that automated driving is important for Tesla’s future. Tesla’s stock price has not been related to how many vehicles have been sold; the price is dependent on robotics, and automated driving technologies.

SpaceX’s Starship rocket had a setback this week; the rocket will be something Musk is hoping to use to travel to Mars. There was a successful launch; but the spacecraft’s ultimate objective of reaching Mars was thwarted.

Musk recently commented, “I may have spent too much time in politics over the past year.” He went on to say, “If, in the future, I see reason to make political donations, I’ll do it. I can’t see any reason too.”