President Donald Trump's special government employee Elon Musk faces mounting tensions within the administration amid reports of his imminent departure.
According to Daily Mail, the Tesla and SpaceX CEO will be stepping back from his high-profile government position weeks before his scheduled departure in May, following private doubts expressed by Trump about his effectiveness.
The revelation has sent shockwaves through Washington and Wall Street, causing immediate market reactions. White House Press Secretary Karoline Leavitt attempted to downplay the news, with both she and Musk dismissing the reports as "fake news."
Musk's controversial management style and unorthodox approach to government operations have created friction within the administration. His slash-and-burn approach to reducing federal government size has resulted in mass firings and multiple lawsuits against the Trump administration.
The relationship between Musk and Chief of Staff Susie Wiles has been particularly strained. Reports indicate Musk frequently bypassed the traditional White House chain of command and made unauthorized announcements on his social media platform X.
A recent $20 million investment in Wisconsin's Supreme Court race, which ended in defeat for his Republican candidate, has further complicated matters. The Democratic victor successfully framed the race as "The People vs. Elon Musk."
Tesla's global vehicle deliveries have dropped 13% in the first quarter, which investors view as potential backlash against Musk's government work. The company's stock initially plummeted but later rebounded following news of his planned return to the private sector.
Trump's recent implementation of a 25% automotive tariff has created additional challenges for Tesla. Musk acknowledged the significant impact on his company, stating on social media that the cost implications were "not trivial."
The company faces particular vulnerability due to its reliance on key suppliers in Mexico and China, both targets of Trump's expanded trade restrictions.
White House sources indicate Musk will likely maintain significant influence despite his departure. His designation as a special government employee was set to expire in late May or early June, limiting him to 130 days of service.
Recent polling shows mixed public reception to Musk's government role, with an NBC News survey finding 51% of voters holding a negative view of him, while 39% viewed him positively. Democrats are expected to use Musk as a campaign issue in upcoming midterm elections, similar to how Republicans previously utilized Nancy Pelosi in their messaging strategies.
The Tesla founder will step down from his position as special government employee before his scheduled May departure date, marking a significant shift in his relationship with the Trump administration. Despite private tensions and public controversies, Musk is expected to maintain regular access to Trump and continue frequenting Mar-a-Lago.
The move comes as Musk confronts multiple challenges, including Tesla's declining sales, controversy over his management style, and the impact of Trump's new tariffs on his business operations. While his official role may be ending, his influence within Republican circles and relationship with Trump appear likely to continue, albeit in a different capacity.
