[Musk] announced that he would step back from Doge starting next month, spending just a day or two a week on government work, and the rest of his time concentrating on his commercial interests.
Musk’s retreat came after consumers had reacted with outrage to Doge’s actions, as it gutted entire US government departments and culled tens of thousands of workers. Protests at dealerships and falling sales, especially in Europe, ended up wiping more than $800bn off Tesla’s market cap.
The billionaire’s star was simultaneously waning within Trump’s orbit. A Wisconsin Supreme Court candidate he backed lost badly earlier this month, and senior Republicans have increasingly expressed disquiet with the speed and depth of Doge’s cuts. Musk also clashed with cabinet members, including Treasury secretary Scott Bessent.
But in the months Musk spent at Trump’s side at Mar-a-Lago and Washington — during which he admitted he managed his businesses only “with great difficulty” — his companies have also been facing increasingly stiff competition from homegrown and Chinese rivals.
“This was the worst possible time for [Musk] to be distracted,” a person close to Musk said of his tenure at Doge.
Lambert here: That’s a damn shame.
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