Elon Musk has reemerged at the helm of his sprawling tech empire after months spent in Washington as the head of the Department of Government Efficiency (DOGE) under President Donald Trump. Once the face of futuristic innovation, Musk became entangled in politics, leading to growing concerns over his prolonged absence from companies like Tesla, SpaceX, xAI, and X (formerly Twitter). Now back in his factories and data centers, Musk dons his old “Occupy Mars” T-shirt—but questions remain: is he too late to repair the damage?
Elon Musk’s dual identity: From business titan to political power player
During his political stint, Musk was a close ally of President Trump, often referred to as his “first buddy.” He played a central role in executing controversial budget cuts and regulatory rollbacks, especially those affecting green energy. While these moves served the administration’s agenda, they alienated many of Musk’s core supporters and business partners, especially in the electric vehicle (EV) market.
Tesla takes a hit: Plunging sales and public backlash
Musk’s political presence coincided with a major downturn for Tesla. As government subsidies for EVs came under threat and Trump imposed new tariffs, Tesla’s stock value dropped by roughly 14%, wiping out around $180 billion in market capitalization. Dealerships became protest sites, and morale across the company fell sharply.
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SpaceX faces internal strain amid CEO’s absence
SpaceX, once energized by Musk’s constant presence and visionary leadership, has struggled in his absence. Employees reported declining morale, with one former mechanic posting publicly: “Your presence used to drive a fire in the team… Please come back and walk the floor.” Despite two Starship test launches during his time away, employee sentiment suggested that motivation had diminished without Musk at the helm.
Musk’s sparse engagement with Tesla operations
Musk reportedly visited Tesla’s Palo Alto office just days before an earnings call, asking questions about Trump’s tariffs—despite the policies being announced months earlier. Internally, executives were concerned about Musk’s declining engagement, with some meetings attended by phone and others missed entirely. A board member allegedly stepped in to fill leadership gaps, according to insiders. Staff noted a growing disconnect between Musk and day-to-day operations, with some describing his appearances as “symbolic rather than strategic.” Morale among top engineers reportedly dipped as confidence in leadership waned.
AI and xAI: The only active focus during Musk’s political phase
While Tesla and SpaceX suffered from lack of attention, Musk remained active with xAI, his artificial intelligence company. He heavily promoted its chatbot, Grok, posting frequently on X. In March 2025, Musk merged X and xAI, forming a mega tech entity valued at $113 billion, according to internal documents tied to an upcoming tender offer.
Telegram partnership sparks confusion and power play
Last month, Musk and Telegram’s founder Pavel Durov teased a partnership that would bring Grok to Telegram’s billion+ users. However, Musk later contradicted the announcement, stating: “No deal has been signed.” This public contradiction hinted at internal misalignment and reaffirmed that Musk still holds the final word in his empire—even if communication is murky.
Leadership vacuum: Workers, investors demand more than symbolism
As Musk posted selfies from SpaceX’s control room and claimed to be sleeping in factory floors again, employees and investors began demanding more than photo ops. Public posts and internal sources alike indicate a desire for Musk to be truly present—leading strategy, boosting morale, and navigating global economic pressures.
