X factor: The rise and fall of Elon Musk as a political figure
The billionaire’s association with Trump and DOGE was widely watched. As he returns to his business empire, the legacy of his short but eventful stint in politics may be a cautionary model for other billionaires.
Elon Musk has officially resigned from the US Department of Government Efficiency (DOGE). Although his role was only temporary and departure was not surprising, it follows his criticism of President Donald Trump’s tax bill. The ‘Big Beautiful Bill’ would not improve America’s finances, he said, and will undermine his efforts to cut back on unnecessary government spending. Was there a clear divide between Trump and Musk?
Only seven months ago, at his victory speech on 6 November, Trump spent four minutes praising Musk. “A star is born—Elon!" said Trump. Musk had invested nearly a quarter of a billion dollars in Trump’s campaign, which could explain his influence on the Trump administration. It was possibly the most astute investment Musk ever made. He oversaw Trump’s DOGE and also shaped a far-right discourse both domestically and internationally.
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Musk attempted to involve himself in several European political issues—in Germany and the UK especially. In February, Time magazine portrayed Musk as “President Musk." Its cover illustration showed him seated at the Resolute Desk in the White House. However, it is evident that Musk has now drifted to the margins of Trump’s world. “Elon is from South Africa—I don’t want to get Elon involved," Trump told his South African counterpart, Cyril Ramaphosa, during a discussion at the White House recently.
On 19 May, an analysis titled ‘Why has Elon Musk vanished from the spotlight?’ was published by Politico, which noted that Trump was posting messages about Musk on his Truth Social platform at an average of four times a week in February and March, but stopped doing so in April. Musk was included in nearly daily fund-raising emails sent by Trump’s campaign team. However, save for a single email in May, this abruptly stopped in early March. Trump’s top advisors and official White House accounts also stopped posting photos and content mentioning Musk.
Musk, whose business empire includes Tesla, SpaceX and X, seemed to have got the drift. Amid mounting investor worries, he announced a major reduction in political spending. This was a public indication of the billionaire turning his focus back to his businesses.
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The main source of Musk’s fortune, Tesla, has lost sales globally and suffered severe brand damage as a result of his political activities. His expressions of support for the far-right anti-immigration AfD party in Germany, for example, were noted across Europe. Tesla’s sales in Europe dropped 49% in April, indicating a backlash against him. Towards the end of that month, Tesla reported a 71% dip in profits. In a call with Tesla investors, Musk said that he would begin stepping back from his position at DOGE in May.
In the US and abroad, Tesla dealerships have been the target of protests and vandalism. Musk’s move to impose harsh employment and spending cuts within the federal government on behalf of the Trump administration was dubbed “one of the greatest brand destructions" ever by Scott Galloway, professor of marketing at New York University’s Stern School of Business.
According to some surveys, most respondents disapproved of the way Musk and DOGE have handled federal government employees and slashed jobs. About 60% of respondents in a nationwide study conducted by Marquette University Law School last month had a negative opinion of Musk, while 38% had a positive opinion. The study found approval of Musk’s DOGE handling at 41% and disapproval at 58%.
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Musk may have recently met his political Waterloo in Wisconsin, where he contributed at least $3 million to making the Wisconsin Supreme Court campaign the most costly in US history. He even personally appeared in Green Bay sporting a cheese-head cap, a favourite among supporters of the Green Bay Packers, an American football team. But the Republican candidate he backed lost by a 10% margin. The Democrats mobilized people by calling it a ‘People versus Musk’ contest to highlight his intervention.
Frankly, Musk’s accountability has been non-existent, his loyalties seem inconsistent and his political intentions unclear. Trump might be well aware of this. Musk stood for six hours to shake hands with Democrat Barack Obama during his 2008 presidential campaign. In 2014, Musk described himself as “somewhere in the middle, fiscally conservative and socially liberal." He even advocated that Trump “hang up his hat and sail into sunset" in 2022, arguing that he was too old to seek re-election. But then he started to tilt Republican.
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Thus, it was perhaps inevitable that Trump would grow weary of Musk. Since the president is accustomed to generating all his popularity himself, it would be easy for him to assume he needs nobody’s help on that count. Then there is also the matter of Musk’s unpopularity, which Trump may not want rubbing off on his own standing.
However, Musk will still hold billions of dollars once Trump’s term is over, not to mention the power of his social media platform. In the political sphere, his legacy may be a handy list of what the ultra-rich should do and not do. Or maybe he has left America’s business class a model that no one else would dare imitate.
The author is professor of statistics at Indian Statistical Institute, Kolkata.
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