Elon Musk Loses Control of IRS After Just 2 Days: Trump’s Cold Decision Cuts Musk’s Political Ambitions Short

In a stunning turn of events, Elon Musk’s influence on the IRS has been abruptly dismantled, as the interim commissioner of the IRS, Gary Shapley, has been ousted just 72 hours after taking the job. The move, orchestrated by Treasury Secretary Scott Bessent, marks a significant blow to Musk's increasing political presence, further fueling the tension between Musk and Washington's elite.

The decision is seen as the latest chapter in the drama surrounding Musk’s increasingly controversial role in politics and business, and it has the potential to reverberate through the financial markets, especially in light of Tesla’s ongoing struggles.

Shapley, a 47-year-old IRS veteran who rose to prominence after blowing the whistle on Hunter Biden’s financial dealings, was a figure installed by Musk’s Department of Government Efficiency (DOGE). His appointment, however, quickly turned sour, leading to a swift and decisive removal by the Treasury Secretary.

The sudden shakeup at the IRS comes on the heels of the tax deadline for most Americans, a time when stability and clarity are crucial.

The leadership upheaval has left many wondering what will happen next for the IRS, as Shapley’s removal represents the latest in a series of temporary heads appointed during the Trump administration, a period that has seen more than its fair share of controversy and political drama at the agency.

Shapley’s short tenure was not without its own tensions. According to sources familiar with the matter, Treasury Secretary Bessent voiced significant dissatisfaction with the manner in which Shapley was appointed, alleging that Musk and his DOGE associates maneuvered around Bessent’s office to secure the role without his approval.

The friction between Bessent and Musk’s camp raises questions about the degree of influence that the billionaire CEO can exert within the corridors of power, and whether his high-profile ventures are becoming too entangled with the politics of the day.

The controversy surrounding Shapley’s exit has also exposed a deeper rift between Musk’s allies and figures within the Trump administration. Sources suggest that Bessent, frustrated by being bypassed in favor of Musk’s political maneuvering, decided to push back, ultimately leading to Shapley’s ousting.

In a telling moment, Bessent reportedly reached out to President Donald Trump, complaining about the installation of Shapley without his knowledge. This move sets the stage for a high-stakes game of political chess, as Musk's influence continues to clash with traditional power structures within the U.S. government.

This clash between Musk and the Trump administration underscores the challenges the billionaire faces as he attempts to expand his political footprint. Though Musk has long been an advocate for policies aligned with conservative ideals, his increasing prominence in Washington, particularly through his DOGE initiative, has begun to unsettle political insiders.

It’s clear that Musk’s rise is not without friction, particularly when it comes to the delicate balance of power within the federal government.

Beyond the politics of the IRS, the leadership shakeup has wider implications, particularly for Musk’s flagship company, Tesla. The electric vehicle giant has been struggling in the stock market, with Tesla recently experiencing what’s known as a “death cross” on April 14, a technical indicator that often signals bearish sentiment.

For Musk, whose fortunes are closely tied to the success of Tesla, this moment could prove pivotal.

Although Musk has not made any indications that he plans to sell Tesla, speculation around such a move is mounting. If Musk were to decide to part ways with Tesla, experts predict that it could either offer the company a chance to rebrand and stabilize in the market, or it could mark the beginning of the end for the once-dominant electric vehicle manufacturer.

Financial analysts have discussed the potential effects of such a sale, noting that it could lead to market restabilization. If Musk were to divest from Tesla, it might wash the company’s public image, helping to distance it from Musk’s increasingly controversial persona.

Javier Palomarez, the founder and CEO of the United States Hispanic Business Council, noted that such a move could "contribute to internal optimism and increased external investment" by signaling a shift towards business focus rather than political involvement.

Despite these possibilities, there’s no immediate indication that Musk intends to part ways with Tesla. However, the situation has raised questions about Musk’s ability to continue overseeing the company amid growing scrutiny over his political actions and public persona.

Gary Shapley’s removal is not the first leadership upheaval at the IRS during the Trump administration. Before Shapley, Melanie Krause had resigned from her role, citing opposition to the sharing of tax information with the Department of Homeland Security for the purposes of enforcing immigration laws.

Krause’s departure was just one in a string of high-profile resignations and retirements that have plagued the agency, leaving many to question whether the IRS can maintain effective leadership in such a tumultuous environment.

Shapley’s tenure, though brief, was marked by his whistleblowing activities, particularly his role in criticizing the Department of Justice for allegedly stalling investigations into Hunter Biden’s financial activities. Shapley’s accusations painted a picture of an entrenched system that had obstructed the investigation into the Biden family’s financial dealings, including claims of prosecutors tipping off the family ahead of searches and refusing to grant access to crucial evidence.

Hunter Biden, who was eventually indicted on charges of failing to pay at least $1.4 million in taxes, has since pleaded guilty to federal charges, though he was pardoned by his father, former President Joe Biden, before his sentencing. Shapley’s role in bringing attention to the case, particularly his efforts to expose what he saw as political interference in the investigation, made him a hero among conservative circles. 

However, his swift removal from office has raised questions about whether his political affiliations and whistleblowing activities played a role in his ousting.

Musk’s growing influence in Washington and his attempt to leverage that power to install figures like Shapley into key government positions is a reflection of his ambitions beyond the realm of business. Musk’s involvement in political discussions, from his support of conservative causes to his efforts to shape policy through his companies, has made him a polarizing figure.

The IRS leadership shakeup, while largely an administrative matter, is indicative of the larger power struggles that Musk finds himself embroiled in. As his political presence continues to grow, he faces increased scrutiny not only from Washington insiders but also from the public, who are questioning whether his vast wealth and influence give him too much sway over government operations.

Whether Musk’s political ambitions will ultimately pay off remains to be seen, but his influence in Washington is undeniable. With figures like Shapley no longer in play, the future of both the IRS and Musk’s business empire may hang in the balance, as the billionaire navigates the intersection of politics, business, and public perception.

In conclusion, the abrupt removal of Gary Shapley as interim IRS commissioner marks a significant setback for Elon Musk’s political ambitions. With political powerhouses like Bessent and Trump pushing back against Musk’s influence, the next steps in this saga are uncertain, but one thing is clear: the billionaire's foray into politics is far from over, and the battle for control over government agencies and business ventures is only just beginning.