Elon Musk Out. Tesla Shaken. Washington Relieved.
Elon Musk is heading for the exit. Insiders confirm the Tesla (NASDAQ:TSLA) CEO will step down from his high-profile government role in the coming weeks as his 130-day service limit nears. While Trump still sings Musk’s praises publicly, the decision follows rising internal friction and political blowback. Musk’s scorched-earth approach to downsizing federal agencies won him fans among fiscal hawks, but also sparked backlashculminating in a surprise liberal win in Wisconsin after Musk poured millions into the race. The White House insists the timing is routine, but signs point to a strategic shift as Republicans look to avoid distractions ahead of the midterms.
Behind closed doors, Trump’s team has been navigating Musk’s unpredictability for months. From unexpected agency cuts to controversial comments on Social Security and foreign policy, Musk often blindsided Cabinet officials and stirred up political drama. His critics argue he became more liability than asset, with polls showing both his approval and that of his DOGE initiative slipping fast. At a recent Cabinet meeting, Trump handed the reins back to his secretaries, signaling a clear recalibration. While Musk will likely retain informal influence, his days as the administration’s headline disruptor appear numbered.
For Tesla investors, the timing is critical. Musk’s return to the private sector comes just as Tesla reported a 13% drop in quarterly sales, partly driven by consumer pushback tied to his political activism. With government contracts under the microscope and opposition mounting, the question now is whether Musk’s focus shift will stabilize the brandor stir up more volatility. Either way, markets will be watching closely as one of the most polarizing figures in both politics and tech returns to full-time CEO mode.
This article first appeared on GuruFocus.
