Tesla is once again facing a critical moment, as Musk decides to gradually step back from government life; this major Republican donor is moving from the forefront to behind the scenes.
According to Reuters, Musk is scaling back his work at the White House to prepare for his role as a Republican political donor in the 2026 midterm elections. Four individuals with direct knowledge of the matter revealed that Musk believes his personal wealth and the social media platform X may have more political influence than direct government involvement.
As a special government employee, Musk's service term at the Department of Government Efficiency (DOGE) is 130 days and will expire at the end of May. Last week, he informed investors that starting in May, he would reduce his working hours at DOGE to one or two days a week.
Musk's Political Influence
"How Elon exits is important," said a person with direct knowledge of the discussions, "the priority is to maintain his close relationships - to avoid turning a key ally into a political burden in 2026."
Although Musk was the largest election donor in 2024, contributing over $250 million to support Trump and other Republicans, the defeat in Wisconsin highlighted the limitations of his political influence.
Reports indicate that strategists from both parties view Musk's funding as both a benefit and a burden for the Republican Party. Brandon Scholz, a former executive director of the Wisconsin Republican Party, stated: "If I were a Republican, I would want him to fund election campaigns but stay out of the spotlight."
White House spokesperson Harrison Fields declined to comment on Musk's political plans, and Musk himself did not respond to Reuters' request for comment.
Tesla: The Victim in a Political Storm
Musk's political activities are having serious consequences for Tesla. The once-leading electric vehicle brand is facing protests due to Musk's far-right political stance, with vehicles being vandalized, a sharp decline in deliveries of older models, and a drop in stock prices, prompting some investors to publicly urge Musk to step back from politics.
A poll conducted by Reuters/Ipsos this month shows that about 58% of respondents have a negative view of Musk, compared to only 30% in 2022. This growing public resentment coincides with his shift from a Democratic supporter to a Republican donor.
According to three insiders, as public resistance against Musk grows and protests target showrooms in the U.S. and Europe, Musk had requested Trump to intervene and publicly support the struggling electric vehicle business and the Tesla brand.
In mid-March, Trump did showcase a cherry-red Tesla on the South Lawn of the White House, praising the company as a symbol of American innovation and announcing the purchase of the vehicle for White House staff. Several Republican allies subsequently expressed support for Tesla on social media.