Elon Musk’s Big Decision: Tesla or the White House? What Will He Choose?

A Mixed Conclusion to His Tenure

Elon Musk confirmed yesterday that he plans to spend much less time at DOGE, an initiative started by Donald Trump. It’s important to remember that his appointment was always meant to be temporary, with a clear goal to drastically cut federal spending. However, after 100 days of reshaping the American government, the billionaire seems ready to shift his focus elsewhere.

The essential work is largely done, he stated, noting that he would refocus on Tesla as early as next month. The car manufacturer has just reported a significant downturn, with a 13% drop in vehicle deliveries in the first quarter of 2025.

While Elon Musk claims his leadership at DOGE has been fruitful, opinions on his achievements remain divided. Some of the savings he touted as being in the billions are actually only in the millions, according to several analysts. Major budget cuts have also raised concerns, particularly in international health programs, such as those fighting AIDS and hunger in Africa.

DOGE has also slashed funding for some global scientific cooperation and health programs. This decision has been criticized even within French medical circles: the National Academy of Medicine expressed alarm in mid-March over a troubling disengagement from the U.S. on global health issues.

Tesla Faces Challenges

Elon Musk’s decision to step back comes at a difficult time for Tesla. The company, previously buoyed by technological momentum and promises of green growth, now faces sluggish demand and fiercer competition, especially from China.

Indeed, the first quarter of 2025 has been rough. The American manufacturer reported a significant financial decline yesterday, falling short of analysts’ expectations. With 336,681 vehicles delivered between January and March, Tesla has seen its first quarterly drop in over a decade, marking a 13% decrease year-over-year.

Despite this disappointing performance, Tesla’s stock remained stable in electronic trading after the New York Stock Exchange closed. This indicates that the market might have already anticipated these lackluster results, or that it remains optimistic in the medium term.

This trend is concerning in a context where global competition is heating up and consumers are looking for more accessible new models. Tesla is not only suffering from an aging product line. Elon Musk’s involvement in the Trump administration has sparked strong reactions globally: boycotts, protests, and acts of vandalism are increasing.

The company itself acknowledges that rapid changes in trade policy are negatively affecting the global supply chain and cost structures of Tesla and its peers. In its statement, it also mentioned a shift in political sensitivities that could have dampened demand in the short term, highlighting how closely the company’s image is tied to its CEO, for better or worse.

Hope at the End of the Tunnel

To reassure investors, Tesla has confirmed that its plans for new models, including a low-cost vehicle, are on track for production in the first half of 2025. Delays in the Model Y—which remains Tesla’s most popular vehicle—also explain and put into perspective the situation.

The introduction of the refreshed model comes after the company reported a decrease in vehicle deliveries for the first time in more than a decade. Nevertheless, Tesla still delivered 1.79 million vehicles worldwide in 2024. Although slightly lower than the 1.81 million delivered throughout 2023, this figure remains quite respectable.

Moreover, 250,000 units of the new Model Y are planned for annual production in the United States by 2026. This could boost sales and the group’s momentum. The delay in this launch may have partly affected this quarter’s results, but the company could well recover soon.

However, in the meantime, the brand will have to deal with a politically charged climate, heightened competitive pressure, and a customer base that is starting to expect more concrete innovations than just announcements.

Ultimately, this strategic reorientation by Elon Musk seems like an attempt to regain control over his industrial activities. Nonetheless, he denies any step back due to media pressure. An unexpected pillar of the Trump administration, his gradual departure could mark a turning point and reignite the debate over the role of private wealth in public policy making.