Elon Musk Steps Back from Politics to Refocus on Tesla, SpaceX, and AI

Watan-Elon Musk entered U.S. politics through the front door, becoming a close advisor to Republican President Donald Trump and regularly appearing at his side—especially during announcements regarding federal budget cuts. But four months later, the tech tycoon confirmed he would step down from his role after criticizing Trump for the first time since his arrival at the White House.

Musk swapped his signature “Make America Great Again” cap for a T-shirt reading “Occupy Mars,” referencing SpaceX’s mission to colonize the Red Planet. He began appearing in the media more frequently—after long avoiding the spotlight—to emphasize his renewed focus on his companies SpaceX and Tesla. On his social platform X, Musk announced he was once again spending “24 hours working” and sleeping in his factories and server rooms.

This marks Musk’s first steps away from Washington, returning to his role as a tech and business titan. However, the return is not without its challenges. Months of supporting Trump’s re-election campaign and dismantling parts of the federal government raised concerns that Musk had become an absentee leader at his companies—including SpaceX, Tesla, xAI, and X.

It remains unclear how much time Musk will now spend at his companies or away from politics. At a press conference in the Oval Office with Trump last Friday, Musk described his departure as “not the end of a CEO era, but the true beginning,” adding that he would continue to visit and “remain a friend and advisor to the president.” Trump echoed this sentiment, saying Musk “isn’t leaving—he’ll be with us and helping us all the time.”

Tesla appears most at risk, with Musk’s popularity at the company sharply declining after he pushed for government job cuts. Tesla dealerships have become protest targets amid falling sales and profits. A proposed Republican budget bill currently in the Senate would eliminate subsidies and policies promoting electric vehicles. Tesla shares are down roughly 14% this year, wiping out around $180 billion in market value.

Still, some of Musk’s companies benefited from his ties to the White House: Trump has promoted Tesla vehicles, and SpaceX has expanded government partnerships through its satellite internet service Starlink. X remains a platform for Musk and Trump supporters. Trump, a politically powerful ally, oversees agencies that regulate Musk’s ventures.

But The New York Times noted Monday that Musk is the public face of his companies, and his prolonged Washington presence has sparked questions about his commitment to their operations. Former SpaceX and other employees have questioned his absence. Broadly, it remains unclear whether the billionaire’s political maneuvers will yield long-term gains.

At SpaceX, Musk’s absence in recent months has been particularly noticeable. In May, a former mechanic, Dylan Small, wrote on X that “morale is low” and employees are “exhausted.” He added: “Your presence energized the team. Come back and join the work.” In a message to The New York Times, Small said the company was largely fueled by inspiration, with Musk playing a major role.

According to the Times, Musk has posted about 1,000 times on SpaceX since Trump took office—but around 2,000 posts about government efficiency, his advisory focus. During that time, SpaceX conducted two test launches of its Starship rocket, which Musk hopes will carry humans to Mars—one just last Tuesday. In an interview with The Washington Post, a publication he previously avoided, Musk affirmed he was “present” for the Starship trial launch from the company’s Starbase facility in South Texas. The launch ended in an explosion, but Musk made a point to appear in control room videos and share influencer interviews discussing space travel.

At Tesla, Musk’s absence was also evident by April. According to the Times, he rarely visited offices or factories since Trump’s inauguration. He did, however, appear at the Palo Alto office shortly before an earnings call. During that visit, Musk asked about the impact of Trump’s new tariffs on Tesla. Attendees were concerned by the timing of his inquiry—Trump announced the tariffs two months earlier in February.

Shortly after that visit, Tesla reported a 13% drop in first-quarter vehicle sales year-over-year—the worst in four years. New tariffs on imported auto parts added financial strain. Matthew Labrot, a former Tesla sales employee in California who was fired after launching a website critical of Musk, told the Times that Musk’s politics had alienated customers: “Selling the car became a daily grind—it never used to be. Elon Musk is the main reason.”

Two informed sources also told the paper that Tesla executives have recently expressed concerns about Musk’s lack of involvement in daily operations, noting he increasingly joins meetings remotely compared to his earlier, more hands-on role as head of Tesla Energy.

Tesla, facing stiff competition from Chinese EV companies like BYD, has tried to diversify into AI and robotics. Musk revealed the company will launch a fully autonomous ride-hailing service this month in Austin, Texas. It also aims to begin manufacturing a lower-cost vehicle—though it’s unclear how it will differ from current models.

In AI, Musk has heavily promoted xAI and its chatbot “Grok,” while continuing legal battles with OpenAI CEO Sam Altman. In March, he sold X to xAI, merging the two companies. Last month, the merged firm launched a stock buyback program, allowing employees to sell shares for cash at a predetermined rate. Internal documents reviewed by the Times valued the merged company at roughly $113 billion.

Regarding X, CEO Linda Yaccarino held a staff meeting last Wednesday to promote the merger and later posted about a partnership to integrate Grok into Telegram. Telegram founder Pavel Durov announced the deal, saying, “Elon Musk and I agreed to a one-year partnership to bring Grok to our billion-plus users across Telegram apps.” Yet hours later, Musk clarified on X: “No agreement has been signed.”