Elon Musk May Step down From U.S Government Role
Analysts and investors have long voiced worries that Elon Musk's diversions and other endeavors could undermine his leadership at Tesla
Elon Musk may step down from his government duties in the coming weeks.. Sharp price swings were seen in the electric vehicle manufacturer on Thursday amid sell-offs in the U.S equity market.
Trump had told his close associates and members of the Cabinet that Musk would be resigning from his government job. Depressing delivery numbers caused the stock to dip early this week, and Trump’s tariff compounded the problem.
Tesla has had a tough first quarter of 2025; the company reported delivering 336,681 electric vehicles, a 13 percent drop from the same period in 2024 and 50,000 units less than the anticipated total. This drop can be ascribed to the new Model Y, its departure from the previous model, and weak demand for Tesla in Europe.
Musk will leave when “his incredible work at DOGE is complete,” Trump stated.
Analysts and investors have long voiced worries that Elon Musk’s diversions and other endeavors could undermine his leadership at Tesla. Musk managed several businesses and his contentious rebranding of Twitter, now known as X, even before he joined the Trump administration. Investors’ wish for a more focused CEO is linked to hopes for a Tesla stock recovery.
As of this writing, the company has lost over one-third of its 2024 value, making it the Magnificent Seven tech stock’s worst performer by a wide margin.
At first, Musk’s fervent support for Trump during the campaign and the first 100 days was seen as a calculated move to create a more hospitable regulatory environment for Tesla’s AI and autonomous driving projects. However, given his increasingly divisive political actions in the US and Europe, the market response indicates that this strategy might have backfired.
Musk’s involvement with the government was accompanied by what many, including some Republicans, saw as an indifferent attitude toward American workers and vital programs. Musk successfully transformed the most recent elections into a referendum on himself and his principles
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