Once a 'White House favorite', Musk is now stepping back from the political stage.

I. A touching moment at Trump's cabinet meeting

On April 30 local time, U.S. President Trump suddenly said to Tesla CEO Elon Musk, who was sitting nearby during a White House cabinet meeting: 'You have been treated unfairly, but the vast majority of people in this country really respect and appreciate you.' As soon as he finished speaking, the ministers present applauded collectively, and the atmosphere became subtle.


Trump then joked: 'I guess he (Musk) is always thinking about going home, back to his cars and family.' Behind this statement is Musk's tough balance between government and business over the past few months.

As a close ally of Trump, Musk has served as head of the 'Department of Government Efficiency' (DOGE) since January, helping Trump cut federal employees and reduce spending.

However, as reforms deepened, his conflicts with cabinet members intensified, and he was even accused by Democrats of 'using power for personal gain'.

II. Musk's 'dual dilemma'

  1. A besieged political stage
    In just three months, DOGE, led by Musk, cut over 120,000 federal employees, terminated thousands of government contracts, and claimed to save $160 billion. However, these radical reforms sparked a huge uproar:

    • Public service paralysis: Layoffs at the Department of Agriculture led to ineffective control of avian flu, layoffs at the Department of Energy threatened nuclear safety, and military spending increased after layoffs at the Department of Defense.

    • Constant legal disputes: 103 lawsuits have been initiated across the U.S. to halt layoffs, and federal judges have repeatedly restricted DOGE from obtaining sensitive data.

    • Escalating internal party conflicts: Musk has had fierce arguments with cabinet members such as Secretary of State Rubio and Treasury Secretary Basent, and they almost came to blows.

  2. Crisis lurking in the business empire
    Tesla's first-quarter financial report showed a 9% year-on-year decline in revenue, a 71% drop in net profit, and the stock price has shrunk nearly 30% since the beginning of the year.

    Investors are strongly dissatisfied with Musk's distraction by government affairs, and The Wall Street Journal even reported that Tesla's board has secretly contacted headhunters to find a successor.

    Although Chairman Robyn Denholm urgently denied the rumors, the market's trust in Musk has significantly diminished.

III. Musk's 'countdown to exit'

  1. Restrictions of special identity
    As a 'special government employee', Musk's service time cannot exceed 130 days within a year. Counting from January 20, his term will end by the end of May at the latest. He is no longer physically working in the White House and has switched to remote communication.

  2. Tesla's 'self-rescue operation'
    To reverse the downturn, Musk announced in May that he would 'significantly reduce' government work hours, keeping only 1-2 days per week for business. Tesla simultaneously launched a '5-year 0 interest' car purchase policy, trying to stimulate sales. However, analysts question whether these measures can turn the situation around.

  3. Trump's 'political calculation'
    Despite publicly supporting Musk, Trump has hinted that DOGE might 'end at some point'. There are speculations that Trump is considering cabinet adjustments, easing tensions with Musk by replacing key positions like the Treasury Secretary.

IV. Musk's 'difficult choice'

Behind this political and business game is Musk's dual identity dilemma:

  • Wealth shrinkage: The Hurun list shows that Musk's wealth has plummeted from 3.07 trillion RMB at the beginning of the year to 2.3 trillion, evaporating nearly 800 billion.

  • Public image collapse: Polls show that 57% of Americans disapprove of his government work, Tesla stores have been vandalized by protesters, and car owners' information has been publicly threatened.

  • Where to go from here: After leaving the White House, Musk may focus on Tesla's autonomous driving technology and SpaceX's Starship project, but rebuilding investor confidence remains a challenge.


This 'applause farewell' cabinet meeting may mark the end of Musk's political career. But for this 'Iron Man', the real challenge is just beginning.