Elon Musk is set to step down from his prominent government role, with insiders confirming that his 130-day service limit is approaching. This decision comes as internal tensions and political backlash have been mounting, even as President Trump continues to publicly praise Musk.
Musk’s aggressive strategy to streamline federal agencies has garnered support from fiscal conservatives, but it also sparked significant controversy, culminating in a surprising liberal victory in Wisconsin after Musk invested millions in the election. The White House insists that the timing of his resignation is routine, yet it appears to signal a strategic shift as Republicans aim to minimize distractions ahead of the midterm elections.
Trump’s team has struggled with Musk’s unpredictability for months. His sudden agency cuts and controversial statements on topics like Social Security and foreign policy have often left Cabinet members blindsided and created political drama. As a result, critics now view him as more of a liability than an asset, as polls show both his popularity and that of his DOGE initiative declining rapidly.
During a recent Cabinet meeting, Trump reverted control back to his secretaries, indicating a clear recalibration of responsibilities. While Musk may maintain some informal influence, his time as the administration’s primary disruptor seems to be coming to an end.
For Tesla investors, this timing is critical. Musk is returning to the private sector as Tesla reports a 13% drop in quarterly sales, partly due to consumer backlash linked to his political activism. With increased scrutiny on government contracts and rising opposition, questions remain about whether Musk’s shift in focus will help stabilize the brand or introduce further volatility.
As one of the most polarizing figures in both politics and technology transitions back into full-time CEO mode, markets will be watching closely for the impact of this development on Tesla’s future.
Credit: Yahoo Finance
