By AFP
April 23, 2025
Elon Musk holds a chainsaw to symbolize his radical cuts of the US government.
— © AFP SAUL LOEB
Sebastian Smith
In Silicon Valley, they talk about “moving fast and breaking things.” In Washington, these days, they call it Elon Musk doing his job.
The one thing even Musk, the richest human alive, is not allowed to obtain under the US constitution is the presidency, because he was not born in the United States.
But when Donald Trump charged him with downsizing the entire government, Musk scored a good second best.
The South African-born 53-year-old’s official title is the non-descript “special government employee.” In reality, he is one of the most powerful individuals in the country.
As Trump’s top financial supporter during last year’s election, Musk emerged over the first 100 days of the new administration with extraordinary access.
The bulky figure, usually wearing a T-shirt and Trump-themed baseball cap, appeared alongside the president at cabinet meetings and Oval Office sessions. On golf weekends. On Marine One. On Air Force One.
And he rode that authority to launch the cost-cutting, so-called Department of Government Efficiency.
Unopposed by Trump’s pliant Republican majority in Congress, and barely slowed by lawsuits, the Tesla and SpaceX magnate hit the task with the manic energy of a venture capitalist.
In a shock-and-awe campaign, he ripped through official Washington, canceling programs, raiding secretive computers, and portraying the US government as a seething mess of fraud.
At one point Musk projected a staggering $2 trillion saving from the $7 trillion federal budget. This then became a $1 trillion target.
And the number has quietly continued to dwindle, leaving Musk’s legacy uncertain — in more ways than one.
As his Tesla car company posted a shocking 71 percent drop in first-quarter profits on Tuesday, Musk announced he would be reducing his White House gig.
– Shock and awe –
Tesla and SpaceX CEO Elon Musk with his son X Æ A-Xii join US President Donald Trump as he signs executive orders in the Oval Office of the White House in Washington, DC, February 11, 2025. – Copyright GETTY IMAGES NORTH AMERICA/AFP JP Yim
But the man who wants to colonize Mars is not prone to self-doubt.
Musk has appeared all-powerful and at times — as his handpicked team of young IT wizards rampage through government computer systems — all-knowing.
One of his first and splashiest moves was to send emails to 2.3 million civil servants, offering buyouts — and making clear their futures now hang by a thread.
The email subject line, “Fork in the Road,” was the same as a similar email Musk sent out to employees at Twitter after he bought the social media company before drastically reducing jobs and rebranding it as X.
Musk also demanded every single employee respond to a weekly email describing five things they’d accomplished. This, he said, was to check staff had a “pulse.”
He jokingly brandished a shiny chainsaw gifted by Argentina’s libertarian president, Javier Milei.
– Ending US foreign aid –
Initial results were dramatic.
Elon Musk shuttered the US foreign aid organization USAID. — © AFP
Within weeks of Trump taking office, Musk’s DOGE crew effectively shut down USAID, the main US foreign aid organization. Staff at headquarters in Washington were told to go home, life-saving programs around the world were frozen, and some government employees were stranded abroad.
Other early targets included any government projects based on DEI, or diversity, equity and inclusion — anathema to the Trump government.
Musk’s DOGE has also tried to shut down the Consumer Financial Protection Bureau, a watchdog agency meant to guard ordinary Americans against bank malpractice, but seen in Trump world as a meddling leftist entity.
In that, as in the other attacks, DOGE’s modus operandi was the same: Musk’s team of outsiders entered the CFPB’s internal computer systems, taking over the financial controls and social media accounts, then locked out staff.
“CFPB RIP,” Musk posted on X.
– Trouble in Musk’s world –
Signs are emerging after three months that Musk’s political rocket ship, at least, may finally be losing altitude.
A person smashes a Tesla car during anti Elon Musk protest in London. — © AFP
Liberals, who once saw Musk as a cult hero for overseeing the ground-breaking electric cars, now slap on bumper stickers awkwardly declaring they bought their Tesla “before Elon went crazy.”
Others have taken darker routes — vandalizing or setting fire to Teslas.
And the company’s stock price continues to tank.
Then there’s the matter of DOGE’s effectiveness.
Setting aside the often traumatic damage inflicted on longstanding government bodies, there’s increasing doubt over the actual savings.
This month, Musk announced a much smaller $150 billion target — and even that is questionable, because the DOGE website, which tracks savings, is reportedly error-strewn.
Where does Musk go next?
Under the law, a “special” employee can only serve the government for 130 days. So in theory Musk will have to leave this summer anyway.
“He’s going to be going back” to his businesses, Trump said. “He wants to.”
Sebastian Smith
In Silicon Valley, they talk about “moving fast and breaking things.” In Washington, these days, they call it Elon Musk doing his job.
The one thing even Musk, the richest human alive, is not allowed to obtain under the US constitution is the presidency, because he was not born in the United States.
But when Donald Trump charged him with downsizing the entire government, Musk scored a good second best.
The South African-born 53-year-old’s official title is the non-descript “special government employee.” In reality, he is one of the most powerful individuals in the country.
As Trump’s top financial supporter during last year’s election, Musk emerged over the first 100 days of the new administration with extraordinary access.
The bulky figure, usually wearing a T-shirt and Trump-themed baseball cap, appeared alongside the president at cabinet meetings and Oval Office sessions. On golf weekends. On Marine One. On Air Force One.
And he rode that authority to launch the cost-cutting, so-called Department of Government Efficiency.
Unopposed by Trump’s pliant Republican majority in Congress, and barely slowed by lawsuits, the Tesla and SpaceX magnate hit the task with the manic energy of a venture capitalist.
In a shock-and-awe campaign, he ripped through official Washington, canceling programs, raiding secretive computers, and portraying the US government as a seething mess of fraud.
At one point Musk projected a staggering $2 trillion saving from the $7 trillion federal budget. This then became a $1 trillion target.
And the number has quietly continued to dwindle, leaving Musk’s legacy uncertain — in more ways than one.
As his Tesla car company posted a shocking 71 percent drop in first-quarter profits on Tuesday, Musk announced he would be reducing his White House gig.
– Shock and awe –
Tesla and SpaceX CEO Elon Musk with his son X Æ A-Xii join US President Donald Trump as he signs executive orders in the Oval Office of the White House in Washington, DC, February 11, 2025. – Copyright GETTY IMAGES NORTH AMERICA/AFP JP Yim
But the man who wants to colonize Mars is not prone to self-doubt.
Musk has appeared all-powerful and at times — as his handpicked team of young IT wizards rampage through government computer systems — all-knowing.
One of his first and splashiest moves was to send emails to 2.3 million civil servants, offering buyouts — and making clear their futures now hang by a thread.
The email subject line, “Fork in the Road,” was the same as a similar email Musk sent out to employees at Twitter after he bought the social media company before drastically reducing jobs and rebranding it as X.
Musk also demanded every single employee respond to a weekly email describing five things they’d accomplished. This, he said, was to check staff had a “pulse.”
He jokingly brandished a shiny chainsaw gifted by Argentina’s libertarian president, Javier Milei.
– Ending US foreign aid –
Initial results were dramatic.
Elon Musk shuttered the US foreign aid organization USAID. — © AFP
Within weeks of Trump taking office, Musk’s DOGE crew effectively shut down USAID, the main US foreign aid organization. Staff at headquarters in Washington were told to go home, life-saving programs around the world were frozen, and some government employees were stranded abroad.
Other early targets included any government projects based on DEI, or diversity, equity and inclusion — anathema to the Trump government.
Musk’s DOGE has also tried to shut down the Consumer Financial Protection Bureau, a watchdog agency meant to guard ordinary Americans against bank malpractice, but seen in Trump world as a meddling leftist entity.
In that, as in the other attacks, DOGE’s modus operandi was the same: Musk’s team of outsiders entered the CFPB’s internal computer systems, taking over the financial controls and social media accounts, then locked out staff.
“CFPB RIP,” Musk posted on X.
– Trouble in Musk’s world –
Signs are emerging after three months that Musk’s political rocket ship, at least, may finally be losing altitude.
A person smashes a Tesla car during anti Elon Musk protest in London. — © AFP
Liberals, who once saw Musk as a cult hero for overseeing the ground-breaking electric cars, now slap on bumper stickers awkwardly declaring they bought their Tesla “before Elon went crazy.”
Others have taken darker routes — vandalizing or setting fire to Teslas.
And the company’s stock price continues to tank.
Then there’s the matter of DOGE’s effectiveness.
Setting aside the often traumatic damage inflicted on longstanding government bodies, there’s increasing doubt over the actual savings.
This month, Musk announced a much smaller $150 billion target — and even that is questionable, because the DOGE website, which tracks savings, is reportedly error-strewn.
Where does Musk go next?
Under the law, a “special” employee can only serve the government for 130 days. So in theory Musk will have to leave this summer anyway.
“He’s going to be going back” to his businesses, Trump said. “He wants to.”
Tesla’s EU sales plunge as Musk takes flak
By AFP
April 24, 2025
Trump has defended Tesla but the company's sales have fallen - Copyright AFP/File Mandel NGAN
Tesla electric car sales in Europe plunged in the first three months of the year, industry data showed Thursday, in a fresh blow to its boss Elon Musk who has been criticised for his work in US President Donald Trump’s administration.
Sales of the sleek machines fell 45 percent to just over 36,000 units in the first quarter of 2025 in the 27-nation bloc, the European Automobile Manufacturers’ Association said in a report.
They dropped by 36 percent just in March, suffering in both periods the biggest fall in sales of any of the major car groups tallied in the association’s report, despite a growth in electric vehicle sales overall.
Tesla showrooms have been hit by vandalism, demonstrations and boycott calls in Europe and the United States in a backlash against public service cuts introduced by Musk in his role as a close adviser to Trump.
On Tuesday the company reported a 71-percent drop in first-quarter profits, signalling a hit to demand due to what it called “changing political sentiment.”
It reported profits of $409 million following a drop in sales, while revenues fell nine percent to $19.3 billion.
Musk promptly announced he would scale back his work for the Trump administration in May to focus on Tesla.
– Auto tariff concerns –
Trump’s combative trade policies have raised concerns in the auto sector after he enacted 25-percent tariffs on cars imported into the United States to try to boost US manufacturing.
“Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers,” Tesla said on Tuesday.
“This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term.”
Tesla pointed to tariffs as another headwind for the company and analysts have also cited a stale portfolio of vehicles as among the challenges facing the company.
But Tesla said it was on track to launch new vehicles “including more affordable models” in the first half of 2025.
Analysts warn of significant brand damage to Tesla from Musk’s leadership role in the “Department of Government Efficiency,” which has granted itself access to government databases with sensitive personal information and implemented thousands of job cuts.
– EU electric car drive –
Electric vehicle sales grew in several EU countries including Germany, as well as non-EU member Britain, the ACEA said — but they still only accounted for 15 percent of the auto market.
Under ambitious efforts to combat climate change, the EU introduced a set of emission-reduction targets that should lead to the sale of fossil fuel-burning cars being phased out by 2035.
But ACEA director-general Sigrid de Vries in a news release highlighted a “persistent gap between ambitious decarbonisation goals, and the ‘reality check’ of slower-than-expected consumer uptake” of electric cars.
“It is vital that policymakers prioritise the measures that will incentivise a supportive ecosystem — from charging infrastructure to fiscal incentives — to ensure the uptake of zero-emission vehicles can accelerate meaningfully,” she said.
Hybrid fuel-electric cars held the biggest share of the EU market: 36 percent compared to 29 percent for petrol-only vehicles.
The bloc’s car industry has been plunged into crisis by high manufacturing costs, the slow switch to electric vehicles and increased competition from China.
Some manufacturers complain the switch is harder than expected as consumers have yet to warm to electric vehicles, which have higher upfront costs and lack an established used-vehicle market.
Musk in a conference call on Tuesday reiterated his bullish outlook on the long-term prospects for Tesla, highlighting its leadership in key growth areas: robotics, autonomous driving and artificial intelligence.
Tesla says profits plunge 71%, warns of ‘changing political sentiment’
By AFP
April 22, 2025
WASHINGTON, DC - MARCH 11: X Æ A-Xii, the son of White House Senior Advisor, Tesla and SpaceX CEO Elon Musk, plays with a toy car as Musk and U.S. President Donald Trump speak alongside a Tesla Model Y and a Cyber Truck on the South Lawn of the White House on March 11, 2025 - Copyright GETTY IMAGES NORTH AMERICA/AFP/File Andrew Harnik
By AFP
April 22, 2025
WASHINGTON, DC - MARCH 11: X Æ A-Xii, the son of White House Senior Advisor, Tesla and SpaceX CEO Elon Musk, plays with a toy car as Musk and U.S. President Donald Trump speak alongside a Tesla Model Y and a Cyber Truck on the South Lawn of the White House on March 11, 2025 - Copyright GETTY IMAGES NORTH AMERICA/AFP/File Andrew Harnik
John BIERS
Tesla reported a 71 percent drop in first-quarter profits Tuesday in results that lagged analyst estimates as Elon Musk’s automaker warned of a hit to demand due to “changing political sentiment.”
The electric vehicle producer reported profits of $409 million following a drop in auto sales that analysts said reflected brand damage due to Musk’s work for the Trump administration.
Revenues fell nine percent to $19.3 billion.
The company retreated from its 2025 guidance, citing unpredictability over trade policy and demand.
“Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers,” the company said.
“This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term.”
On the positive side, Tesla said it was on track to launch new vehicles “including more affordable models” in the first half of 2025.
The statement followed a report last week that the company planned to delay the launch. Analysts have cited a stale portfolio of vehicles as among the challenges facing the company.
Musk is expected to speak later Tuesday on a conference call with investors and analysts, some of whom have called on the billionaire to announce a plan to exit the Trump administration in order to focus on Tesla.
Musk, the world’s richest person, donated more than $270 million to Trump’s 2024 presidential campaign.
Analysts warn of significant brand damage to Tesla from Musk’s leadership role in the “Department of Government Efficiency,” which has granted itself access to government databases with sensitive personal information and implemented thousands of job cuts.
– Robotaxi on track –
The shakeup to US government operations has led to questions about programs like the Social Security retirement benefit and the continuation of programs like hurricane forecasting.
Wedbush Securities analyst Dan Ives said it will be a “Code Red” situation if Musk remains at DOGE, noting that “Tesla’s stock has been crushed since Trump stepped back into the White House,” according to a note released earlier this week.
In January, Tesla confirmed plans to unveil new, more affordable vehicles in the first half of 2025, a move that helped mute criticism that the EV maker’s lineup has gotten stale.
But a Reuters report last week said Tesla was pushing back the launch of a lower-cost Model Y SUV by a “few months” for reasons that were unclear.
Besides confirming the new vehicles as on time, Tesla also reiterated that a robotaxi launch was on track for June, according to its press release.
Ives, who has implored Musk to significantly scale back his work on DOGE, said he must also map out a timeline and “hard facts” around the company’s ambitious autonomous driving and robotics ventures.
Analysts at Morgan Stanley meanwhile said Tesla may also unveil restructuring efforts to cut costs in light of weaker profit margins due in part the heavy investments in new technologies.
Tesla’s stock reaction will also be influenced by whether there is a “sense of increased attention from their CEO,” Morgan Stanley said.
“Investors will be searching for any signs of Tesla’s CEO reprioritizing the efforts of Tesla vs. politically oriented endeavors,” Morgan Stanley said.
Tesla shares were little changed in after-hours trading.
Tesla reported a 71 percent drop in first-quarter profits Tuesday in results that lagged analyst estimates as Elon Musk’s automaker warned of a hit to demand due to “changing political sentiment.”
The electric vehicle producer reported profits of $409 million following a drop in auto sales that analysts said reflected brand damage due to Musk’s work for the Trump administration.
Revenues fell nine percent to $19.3 billion.
The company retreated from its 2025 guidance, citing unpredictability over trade policy and demand.
“Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers,” the company said.
“This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term.”
On the positive side, Tesla said it was on track to launch new vehicles “including more affordable models” in the first half of 2025.
The statement followed a report last week that the company planned to delay the launch. Analysts have cited a stale portfolio of vehicles as among the challenges facing the company.
Musk is expected to speak later Tuesday on a conference call with investors and analysts, some of whom have called on the billionaire to announce a plan to exit the Trump administration in order to focus on Tesla.
Musk, the world’s richest person, donated more than $270 million to Trump’s 2024 presidential campaign.
Analysts warn of significant brand damage to Tesla from Musk’s leadership role in the “Department of Government Efficiency,” which has granted itself access to government databases with sensitive personal information and implemented thousands of job cuts.
– Robotaxi on track –
The shakeup to US government operations has led to questions about programs like the Social Security retirement benefit and the continuation of programs like hurricane forecasting.
Wedbush Securities analyst Dan Ives said it will be a “Code Red” situation if Musk remains at DOGE, noting that “Tesla’s stock has been crushed since Trump stepped back into the White House,” according to a note released earlier this week.
In January, Tesla confirmed plans to unveil new, more affordable vehicles in the first half of 2025, a move that helped mute criticism that the EV maker’s lineup has gotten stale.
But a Reuters report last week said Tesla was pushing back the launch of a lower-cost Model Y SUV by a “few months” for reasons that were unclear.
Besides confirming the new vehicles as on time, Tesla also reiterated that a robotaxi launch was on track for June, according to its press release.
Ives, who has implored Musk to significantly scale back his work on DOGE, said he must also map out a timeline and “hard facts” around the company’s ambitious autonomous driving and robotics ventures.
Analysts at Morgan Stanley meanwhile said Tesla may also unveil restructuring efforts to cut costs in light of weaker profit margins due in part the heavy investments in new technologies.
Tesla’s stock reaction will also be influenced by whether there is a “sense of increased attention from their CEO,” Morgan Stanley said.
“Investors will be searching for any signs of Tesla’s CEO reprioritizing the efforts of Tesla vs. politically oriented endeavors,” Morgan Stanley said.
Tesla shares were little changed in after-hours trading.
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