From the outset, Trump and Musk seemed like a winning duo. However, the reality of Elon Musk's business quickly revealed difficulties. Tesla is in freefall, X is lagging behind, and Musk must return to his roots. He is once again investing heavily in his factories, hoping to revive a weakened industrial economy. Between crises and digital ambitions, he must overcome major challenges to get back on track.
In short
Tesla suffers a sales drop of more than 50% in Europe.
Musk announces his retirement from the Department of Government Efficiency ahead of deadline.
X Money is preparing a payments revolution with more than 600 million users.
The savings promised by DOGE fall far short of the initial targets.
Musk takes radical measures to address Tesla's precipitous fall
Tesla is in the midst of a profound crisis. In Europe, its sales plummeted by 52.6% in April 2025. Even French companies have begun to abandon the American giant's electric vehicles. Over the first four months of the year, the decline reached 46.1% (41,677 vehicles sold compared to 77,314). Tesla's market share fell to 1.1%, compared to 2.4% a year earlier. The Model Y, once the undisputed leader, now ranks ninth in Europe.
Meanwhile, the European electric vehicle market is growing by 26.4% year-on-year. Chinese manufacturers such as BYD and MG are achieving impressive growth of 59%. Historical competitors are adapting their strategies, innovating, and localizing their production. Tesla, stuck in its ways, is struggling to keep up.
Faced with this situation, Musk announced a return to intense work:
I have to be very focused on X and Tesla… sleeping in conference rooms, servers and factories.
This radical decision reflects the urgency of restoring Tesla's economy. The board of directors is even considering a reshuffle, given the current situation's dire consequences.
X Money: Musk's hope to revolutionize payments and revive the digital economy
Alongside Tesla, Elon Musk is banking on X and its X Money payment service to revitalize his digital business. This service, developed in partnership with Visa, will soon be available in beta. It aims to offer a peer-to-peer payment solution, leveraging blockchain to reduce costs and facilitate transactions.
With over 600 million potential users, X could integrate decentralized finance into everyday life. The platform also plans features like tipping creators, strengthening financial interactivity.
Ryan Lee, an analyst at Bitget Research, points out:
X Money's integration of crypto could be a turning point for mainstream digital payments, positioning it as a low-cost, blockchain-based alternative to traditional platforms like PayPal.
However, success will depend on regulation and security, two key factors in building user trust.
This initiative comes as X suffered a major outage in late May, symbolizing the fragility of this growing digital empire. Musk must also ensure the recovery of his other companies, notably SpaceX, to consolidate his economic empire.
Musk quits DOGE, but criticism continues: Between failures and economic controversies
Elon Musk announced his departure from the Department of Government Efficiency (DOGE) several days before the legal deadline of May 28, 2025. This deadline would have required Musk to comply with strict transparency rules, which he preferred to avoid. Despite his stated ambitions, the results have been disappointing. Musk promised to save a trillion dollars, but only $150 billion was announced, of which $61.5 billion was precisely documented.
The abrupt closure of certain programs, such as USAID, has sparked an outcry. Bill Gates accused the agency of "killing poor children" with these cuts. Many critics point to a lack of transparency and point to conflicts of interest, as Musk holds major government contracts.
Musk, for his part, preferred to refocus on his private businesses, claiming to work "around the clock" and sleep in his factories and conference rooms. His time in government has turned into a political and media fiasco, exacerbated by protests and a tense climate. The public economy is suffering the consequences of management deemed too brutal, while Musk attempts to turn around his industrial and digital empire.
Some points to remember:
Tesla sales to drop by 52.6% in Europe in April 2025;
European electric vehicle market growing by 26.4%;
59% growth for Chinese manufacturers (BYD, MG, Xpeng);
Musk promised 1 trillion in savings via DOGE, only 150 billion announced;
X Money targets over 600 million users with crypto integration. $DOGE
Elon Musk recently left the DOGE department, shifting his focus to Tesla and X in the face of a major crisis. Tesla's sales are plummeting, fueling speculation about a possible departure. Despite this, Musk seems determined to save his industrial empire, but Tesla's future remains uncertain in this turbulent environment.
