Elon Musk Crashes in Politics and Business: Tesla on the Brink, White House Completely Shuts Him Out

Elon Musk, the billionaire CEO of Tesla and founder of SpaceX, appears to be in the midst of a crisis that spans both his political and business lives. While his dominance in technology and innovation has been undeniable, recent developments indicate that his involvement in government affairs and political spheres has taken a substantial toll on his reputation and the future of his flagship company, Tesla.

The ramifications of Musk’s political involvement are being felt across the globe, leading many to wonder whether the entrepreneurial titan can salvage both his business empire and political career, or if his failure on both fronts signals a permanent downfall.

According to reports from The Washington Post, Musk is reportedly ready to leave his government position due to what he perceives as constant attacks and unrelenting pressure from the political left. His role as the head of the Department of Government Efficiency (DOGE) was always controversial, but now, as his special government employee status nears its expiration at the end of next month, Musk is becoming increasingly disillusioned.

Inside sources reveal that Musk is frustrated by the aggressive criticisms of his policies and actions, feeling isolated and alienated from both the public and many of his colleagues within the administration.

While Musk’s departure from the government is not yet official, the speculation is growing. A person familiar with Musk’s thinking explained that he believes his political role at DOGE will not have a lasting impact on his influence in the business world, as he has already positioned key staffers in various agencies.

However, the tone of the reports and the widening distance between Musk and the White House suggest that the government role, which once seemed like a significant platform for Musk to influence policy, has now become a burden he is no longer willing to carry.

The problems within the administration are multifaceted. Musk's tendency to act unilaterally, bypassing key figures in the government, has caused resentment among some of his colleagues. For instance, Musk’s decision to install his own preferred candidate as the acting commissioner of the IRS, despite objections from Treasury Secretary Scott Bessent, has angered many inside the administration.

These power struggles, combined with his apparent disregard for coordinated efforts in cost-cutting measures, have caused tension between Musk and key figures in the White House. Moreover, his penchant for micromanaging has alienated many government officials, contributing to his waning influence.

Musk’s position in the government is no longer seen as an asset. Instead, it is increasingly viewed as a liability, with one senior official from the administration bluntly telling Rolling Stone that dealing with Musk was "like listening to really rusty nails on a chalkboard." This sentiment, while extreme, captures the growing sense of dissatisfaction with Musk’s approach and leadership style in the political realm.

Even Trump’s pick for NASA administrator, Jared Isaacman, publicly distanced himself from Musk, emphasizing that his loyalty was to the nation and the space agency, not Musk. This distancing only further isolates Musk within the political circles.

On the business front, Musk’s troubles are just as severe. Tesla, the electric vehicle company that Musk has built from the ground up, is now facing what analysts are calling a “code red” situation. According to Dan Ives, an analyst at Wedbush Securities, Tesla is at a critical crossroads, and Musk’s current distractions—particularly his involvement in politics—are to blame for the company’s struggles.

Ives has been one of the leading voices warning that Tesla’s brand has suffered significant damage as a result of Musk’s political and personal affiliations, particularly his alignment with the Trump administration and his promotion of the controversial cryptocurrency DOGE. Ives argues that Tesla has become a global political symbol, which has led to negative consequences for the brand.

Not only has the company’s stock price been affected, but protests and even incidents of violence against Tesla dealerships and owners have erupted in various parts of the world. This political fallout has had a direct impact on the company's bottom line, with demand for Tesla vehicles dropping significantly.

“Tesla has unfortunately become a political symbol globally of the Trump Administration and DOGE,” Ives explained, noting that the company’s stock has taken a hit, and there’s now a “potential 15 percent to 20 percent permanent demand destruction for future Tesla buyers due to the brand damage Musk has created with DOGE.”

These figures paint a grim picture for Tesla’s future, as the company faces mounting pressure both from internal forces and external market forces.

In addition to the brand damage, Tesla's first-quarter delivery numbers were notably weak, and analysts have revised their 2025 delivery estimates from 2 million units down to 1.65 million units. Earnings per share (EPS) projections have also been adjusted downward, with some analysts predicting a drop to around $2 per share, or even lower.

While Ives remains optimistic about Tesla’s long-term prospects, calling the company one of the most disruptive tech firms in the world, he emphasizes that Tesla’s recovery is contingent upon Musk stepping back from his political involvement.

“Musk needs to leave the government, take a major step back from DOGE, and get back to being CEO of Tesla full-time,” Ives said. For Tesla to regain its former trajectory, Ives argues that Musk needs to refocus on what made Tesla successful in the first place: producing innovative electric vehicles and advancing the company’s work in AI, robotics, and full self-driving technology.

Musk’s involvement in the political arena, he believes, has become a distraction that is preventing Tesla from reaching its full potential.

As Musk grapples with significant challenges on both the political and business fronts, the question remains: Can he salvage both his government role and the future of Tesla, or will he be forced to choose one over the other? Analysts and insiders are split on whether Musk can regain his footing, but the consensus seems to be that his involvement in politics is proving to be a detriment to both his personal brand and his business empire.

For now, Musk’s political future looks uncertain. His possible departure from the Department of Government Efficiency seems imminent, as he appears increasingly worn down by the constant criticisms and internal resistance.

On the business side, Tesla’s future remains in the balance, with the company facing declining demand and brand damage from Musk’s controversial actions. If Musk wants to reverse Tesla’s fortunes, it may be time for him to step away from the political stage and refocus on the company’s core mission.

In the coming weeks, all eyes will be on Musk’s next moves. Will he heed the advice of analysts like Ives and reassert himself as the full-time CEO of Tesla, or will he continue to straddle both worlds, risking further damage to his business and political reputation?

Only time will tell if Musk can navigate this difficult crossroads and come out stronger on the other side.