Elon Musk has achieved the highest net worth ever recorded, estimated at around $839 billion, according to Forbes on Tuesday. This surge contributed to a record number of billionaires worldwide—3,428—whose combined wealth reached an all-time high of $20.1 trillion.
For the second year in a row, Musk leads the Forbes World’s Billionaires list after seeing his fortune grow by approximately $500 billion in the past year, primarily due to increasing valuations of Tesla and SpaceX, which plans to go public in 2026.
He is the first person to break the $800 billion barrier and is on track to become the world’s first trillionaire.
“This is the year of the billionaire,” said Chase Peterson-Withorn, Senior Editor at Forbes for Wealth. “Over the past 12 months, more than one new billionaire was added each day, fueled by the AI-driven stock market boom that catapulted fortunes to previously unimaginable heights.”
The list shows Larry Page, co-founder of Google, in second place with an estimated net worth of $257 billion, followed by Sergey Brin, also a co-founder of Google, with a net worth of $237 billion. Jeff Bezos of Amazon sits at number four with $224 billion, and Mark Zuckerberg of Meta rounds out the top five with $222 billion.
Forbes also highlighted that U.S. President Donald Trump’s wealth increased by 27%, reaching an estimated $6.5 billion thanks largely to cryptocurrency dealings and the dismissal of a fraud case in New York. He ranks 645th globally.
Billionaire Elon Musk is quietly delaying plans to launch a new political party, telling his allies he wants to concentrate on his businesses, according to the Wall Street Journal, citing sources familiar with the matter.
Musk revealed the “America Party” in July following a public dispute with former President Donald Trump over tax cuts and spending legislation.
Recently, he has been working to maintain his relationship with Vice President JD Vance, and has admitted to colleagues that starting a political party could harm his connection with Vance.
Musk, the world’s wealthiest person, and his associates have informed those close to Vance that Musk might consider using some of his financial resources to support Vance if he runs for president in 2028, the report states.
In 2024, Musk, who leads Tesla and SpaceX, reportedly spent nearly $300 million to help elect Trump and other Republican candidates, exerting significant influence during the early weeks of Trump’s administration’s newly established efficiency department (DOGE).
Reuters was unable to verify the Wall Street Journal’s report immediately. Tesla and the White House did not respond to requests for comments outside of normal business hours.
Vance, who had called for peace after Musk’s publicly visible feud with Trump, reaffirmed his stance this month and asked Musk to return to the Republican fold.
Tesla’s stock has fallen over 18% this year after the company reported its worst quarterly sales decline in more than ten years in July, along with profits that missed Wall Street expectations, despite having a better profit margin than many anticipated.
Musk also warned of “a few tough quarters” ahead after the Trump administration ended its support for electric vehicles.
Investors are concerned about whether Musk can dedicate enough time and attention to Tesla while embroiled in disputes with Trump over his political party ambitions.
In Abyssus, players can choose from a variety of weapons before starting an expedition. Some weapons are available from the beginning, while others must be discovered during gameplay. One such weapon is the Tesla Gun, which features unique characteristics.
Although the Tesla Gun isn’t the most powerful weapon in the game, it has certain advantages. Depending on your playstyle, you might find it easier to use than others because of its spread and attack style. Here’s what you need to know to build the perfect Tesla Gun setup.
How to Unlock the Tesla Gun
The Tesla Gun isn’t available immediately but is relatively easy to find. After defeating the mini-boss in the Gardens—the second realm in Abyssus—you can find the gun next to the exit portal. Simply pick it up to add it to your inventory for your next run.
Note: When you unlock a new weapon, you can’t use it right away. You need to wait until your next expedition and then equip it at a workbench.
How The Tesla Gun Works
The Tesla Gun is a charged weapon firing a large beam with its primary fire and projectiles with its secondary fire.
The primary fire emits a continuous beam that consumes 100 ammo.
The secondary fire shoots projectiles that deal damage over time as they pass through enemies, also costing 100 ammo but using 20 ammo per projectile.
Both firing modes share the same ammo pool.
Best Build for the Tesla Gun
The Tesla Gun is relatively slow depending on your build but doesn’t require precise aiming, which is helpful. However, its damage output is lower compared to other weapons in Abyssus. To maximize damage and range, consider the following setup:
Fire Mode
Type
Details
How to Unlock
Primary Fire
Charge Beam
Increases damage to weak spots, great for boss fights
Apply 100 Damage Over Time with Tesla Gun
Secondary Fire
Magnetic Storm
Releases lightning across the battlefield, hitting multiple enemies simultaneously
Deal damage to 7 enemies concurrently
Choosing the Best Ability
When selecting an ability, the options are flexible. The Brine Field is highly recommended because it slows enemies and offers protection. Since the Tesla Gun’s primary fire doesn’t have a long range, having a defensive ability like Brine Field helps keep enemies close while safeguarding you.
Best Aspects
Each run in Abyssus offers different randomized Aspects, but these are highly synergistic with the Tesla Gun:
Aspect Category
Aspect Slot
Details
Barrier
Primary Fire
Charges your shield quickly with continuous primary fire
Blood
Secondary Fire
Increases your health, making close-range combat safer; enhances secondary fire damage via hemorrhage effects
Tentacles
Ability
Allows Tentacles to follow up with damage after using Brine Field
Tip: If you prefer projectile-based secondary fires, Blood aspects tend to work better than lightning storm effects.
Best Charms
Charms also vary with each run, but here are some recommended options:
Fan: Grants two additional projectiles, boosting your secondary fire’s spread.
Marksman: Improves damage per hit, up to a 50% increase, maximizing overall damage output.
Tesla has opened its first diner in Hollywood, California, situated within a uniquely themed Supercharger station. The diner welcomed its inaugural guests on Monday night, showcasing the interior in a recent video release.
What’s the theme? The Tesla Diner merges the nostalgic vibe of a 1950s American drive-in diner with a sleek, modern Tesla-inspired aesthetic, aiming to evoke a mix of fond memories and cutting-edge design.
Where is it? This exciting new diner is located at 7001 Santa Monica Boulevard in West Hollywood, Los Angeles, approximately a 20-minute walk from the famous Hollywood Walk of Fame.
Will Tesla expand its diner locations? Possibly! During the opening, Elon Musk indicated plans to establish additional diners at Supercharger stations in major global cities and along popular long-distance travel routes if the Hollywood location proves successful.
Can I visit even if I don’t own a Tesla? Absolutely! The diner features 80 Tesla V4 Superchargers, making it convenient for Tesla owners and any electric vehicle drivers with compatible connectors to recharge while enjoying the food and ambiance. Anyone in the area is welcome to stop by, regardless of vehicle type.
Is there an “Elon Burger” on the menu? Not at this moment, but there is a Tesla Burger priced at $13.50 alongside classic diner options like hot dogs ($13), egg sandwiches ($12), hash brown bites ($8), and grilled cheese ($9). A variety of drinks is also available, and the food is served in containers inspired by the Cybertruck design:
Rivian
If your vehicle doesn’t have enough range to reach your destination, the navigation system collaborates with Google Maps to locate the most effective charging stations along your route. It will also update you in real-time about the availability of charging points.
These enhancements will also be visible in the Rivian mobile app, allowing users to plan their routes and discover points of interest before embarking on their journeys.
This advanced navigation system brings Rivian closer to competing with Tesla’s in-car technology.
The Rivian R1S and R1T, which start at approximately $71,000, provide a technological edge but still differ significantly in price compared to Tesla’s offerings, with the Model 3 starting around $35,000.
As discussions of a more affordable Tesla continue, Rivian may take some time to match Tesla’s entire lineup. However, the upcoming Rivian R2 is set to start at $45,000, and an even more budget-friendly R3 is anticipated in the future.
Elon Musk, the CEO of SpaceX and Tesla and owner of X, announced the creation of a new political party, dubbed the “America Party,” following a social media poll that suggested a significant interest among his followers for such an initiative. On Saturday, he shared in a post, “By a factor of 2 to 1, you want a new political party, and here it is!”
Musk emphasized that this new party aims to “restore your freedom.” His announcement comes on the heels of former President Donald Trump signing a contentious tax-cut and spending legislation into law, which Musk has publicly criticized.
Despite being a substantial financial supporter of Trump’s re-election campaign and previously leading an initiative focused on government spending cuts in the Trump administration, Musk’s relationship with the former president appears to have soured due to differing views on the recent legislation. Earlier in the week, Trump hinted at the possibility of reducing the federal subsidies that Musk’s companies currently receive.
Musk had previously mentioned his intention to form a new political party and invest in campaigns to challenge lawmakers who endorsed the bill. This ongoing tension between Musk and Trump has raised eyebrows among Republicans, who worry that it could jeopardize their majority in the upcoming 2026 midterm congressional elections.
Here’s a rewritten version of the original content, unique and in American English:
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US President Donald Trump and Elon Musk during a press conference in the Oval Office, Washington, DC, May 30, 2025. — Reuters
President Trump expresses no desire to mend fences with Musk.
Musk’s dissent is making it harder for Congress to pass legislation.
Tesla CEO has removed several social media posts that criticized Trump.
On Monday, President Donald Trump stated he has no plans to discontinue Starlink at the White House but may consider relocating his Tesla vehicle elsewhere. This follows his weekend announcement of the end of his relationship with Elon Musk, the billionaire who heads both companies.
“I might move the Tesla around a bit, but I don’t intend to do the same with Starlink. It’s a reliable service,” Trump told journalists, referring to the satellite internet provider operated by Musk’s SpaceX.
In March, Trump revealed he had acquired a red Tesla Model S from Musk, who was previously a close ally.
A White House official mentioned last week that Trump might part ways with the vehicle after a public dispute arose between the two. The Tesla was spotted parked at the White House over the weekend.
On Saturday, Trump made it clear he had no interest in repairing his relationship with Musk. However, he also said he wouldn’t mind if Musk reached out to him.
“We had a good rapport, and I wish him nothing but the best,” Trump remarked. Musk responded with a heart emoji to a video clip on X that showcased Trump’s comments.
Last week saw a series of harsh exchanges between Trump and Musk after Musk labeled Trump’s tax and spending bill as a “disgusting abomination.”
Musk’s opposition has created obstacles for Republican efforts to advance Trump’s “big, beautiful bill” through Congress, where the party holds slim majorities in both the House and Senate.
Since the disagreement started last Thursday, Musk has deleted several critical posts about Trump on social media, including one expressing support for the president’s impeachment.
Sources close to Musk indicate that his frustration is beginning to fade, and they believe he may be inclined to mend his relationship with Trump.
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This version maintains the essence of the original content while ensuring it’s written uniquely and in American English.
Title: Tensions Rise Between Trump and Musk Amid Public Fallout
Image Description:
Elon Musk, CEO of Tesla and owner of X, stands alongside former President Donald Trump at a campaign rally in Butler, Pennsylvania, on October 5, 2024—the day Trump returned to the location of a July assassination attempt against him. (Image Source: Reuters)
Trump dismisses the idea of reconnecting with Musk.
He states, "I’m not even thinking about Elon."
The White House confirms there are no plans for a call.
WASHINGTON: Former President Donald Trump recently stated that Elon Musk has "lost his mind," as their public disputes continue to escalate. Once seen as close allies, the relationship between these two influential figures has deteriorated dramatically after Musk criticized Trump’s substantial spending bill. In response, Trump has expressed disinterest in further communication with the billionaire.
This unexpected split has sent shockwaves through Washington, with tensions mounting rapidly and neither party showing signs of reconciliation. The fallout from this rift poses significant political and economic challenges for both men.
According to White House officials, Trump has abandoned thoughts of speaking with Musk and is even contemplating selling the red Tesla he purchased during their amicable times.
Trump has shifted his focus toward advancing his ambitious spending bill, a move that initially triggered Musk’s harsh critique. Despite being drawn into the conflict, the 78-year-old Trump couldn’t resist taking a shot at his former ally, saying, “You mean the man who has lost his mind?” during a phone call with ABC. He later added in a Fox News interview that Musk had “lost it” and remarked, “I’m not even thinking about Elon… The poor guy’s got a problem.”
Just last week, Trump had expressed warm wishes as Musk exited his role at the Department of Government Efficiency (DOGE) after a brief four-month stint.
“Very Disappointed”
While signs of tension had been apparent, the speed with which their friendship fell apart has left many in Washington astounded. Musk labeled Trump’s spending bill an “abomination,” prompting Trump to express his disappointment in a passionate rant from the Oval Office.
Critical of Trump’s proposal—which will increase the U.S. deficit and potentially weaken healthcare for millions of low-income Americans—Musk escalated the conflict by making unfounded accusations against Trump, suggesting he had ties to the disgraced financier Jeffrey Epstein.
In retaliation, Trump utilized the weight of his office to threaten Musk, signaling that he could revoke the SpaceX CEO’s multi-billion-dollar contracts for rockets and satellites.
Despite this, Musk seemed to attempt reconciliation by retracting threats to halt his company’s vital Dragon spacecraft program, which is crucial for NASA’s missions to the International Space Station. Meanwhile, he also toned down his social media activity on the X platform.
The White House has dismissed any conjecture about a conversation between Trump and Musk. A senior official stated, “The president does not intend to speak to Musk today,” while another confirmed Musk’s request for a call.
Tesla’s Financial Woes
In the midst of this public feud, Tesla saw its stock dip by over 14% on Thursday, erasing approximately $100 billion from the company’s market value, though it saw a partial recovery on Friday. Trump is now contemplating whether to sell or gift the cherry-red Tesla S he acquired from Musk’s company back in March.
The vehicle remained parked on the White House grounds, and a senior official confirmed that Trump is indeed considering the options.
While Trump seemed to maintain an upper hand in this conflict, Musk still has significant influence, having contributed nearly $300 million to Trump’s 2024 campaign. This recent fallout may jeopardize Musk’s future support during the upcoming midterm elections, posing a dilemma for both men in navigating their strained relationship.
Elon Musk converses with US President-elect Donald Trump during the sixth test flight of the SpaceX Starship rocket in Brownsville, Texas, US, November 19, 2024. — Reuters
WASHINGTON: Elon Musk has taken the political arena by storm, calling for the impeachment of President Donald Trump.
The billionaire entrepreneur’s demand follows a heated public dispute with Trump over government spending and electric vehicle subsidies.
Once allies, the two have become opponents, with Musk asserting that Trump is no longer suitable for leadership. Their conflict escalated on social media, capturing public attention and shaking the markets.
The tensions began when Trump critiqued Tesla CEO Musk during a meeting at the Oval Office. Within hours, their previously solid alliance had visibly crumbled, with the world’s wealthiest man and its most powerful trading barbs on Trump’s Truth Social and Musk’s X platform.
“A simple way to cut costs from our budget — savings in the billions — is to eliminate Elon’s government subsidies and contracts,” Trump claimed on Truth Social.
Following Trump’s remarks, Wall Street reacted sharply, causing Tesla’s stock to plummet by 14.3%, wiping out around $150 billion in market value — the largest single-day drop in the company’s history.
Just after the market closed, Musk responded affirmatively to a post on X that suggested Trump should be impeached. Currently, Trump’s Republican Party holds majorities in both chambers of Congress, making impeachment highly improbable.
The rift had been simmering, starting when Musk criticized Trump’s extensive tax-cut and spending legislation. Initially, Trump remained silent while Musk fought against the bill, arguing it would exacerbate the nation’s $36.2 trillion debt.
Finally addressing the issue, Trump expressed his disappointment in Musk during a Thursday briefing in the Oval Office.
“Elon and I used to have a great relationship. I’m not sure that will continue,” Trump remarked.
As Trump spoke, Musk unloaded a series of pointed posts on X.
“Without my support, Trump would have lost the election,” Musk declared, referencing his nearly $300 million backing for Trump and other Republicans in the last election. “What ingratitude!”
In another post, Musk cautioned that Trump’s tariffs might lead the U.S. into a recession by year’s end.
In addition to Tesla, Musk oversees SpaceX and its satellite division, Starlink, which are critical components of the U.S. government’s space initiatives. In retaliation to Trump’s threats, Musk announced the planned retirement of SpaceX’s Dragon spacecraft, the only U.S. vehicle currently able to transport astronauts to the International Space Station.
A Clash of Titans
While the dispute was not entirely surprising, as both Trump and Musk possess strong personalities and are unafraid to engage in public disputes, many had speculated about a possible fallout.
Even before Musk exited the administration last week, his influence had started to wane due to ongoing disagreements with cabinet officials over his aggressive cost-cutting measures.
This marks the first significant split with a senior advisor for Trump since he began his second term, although his initial term was marked by several dramatic exits.
Trump said goodbye to multiple chief of staff, national security advisors, and political strategists between 2017 and 2021, with some, like Steve Bannon, remaining loyal, while others, such as Ambassador John Bolton, became outspoken critics.
Musk had been one of Trump’s most visible advisors, notably as the largest Republican donor in the 2024 campaign. As the head of the Department of Government Efficiency, Musk spearheaded a controversial initiative to downsize the federal workforce and reduce spending.
He was frequently seen at the White House and Congress, often accompanied by his young son.
Just six days prior to Thursday’s flare-up, Trump and Musk were seen together in the Oval Office, praising each other’s contributions and promising future collaboration.
However, this feud now poses a threat to Republican cohesion ahead of next year’s midterm elections. Musk’s vast following and fundraising connections within Silicon Valley could complicate matters for the party.
Moreover, Musk has indicated plans to cut back on his political donations moving forward.
Shortly after Trump’s comments, Musk conducted a poll for his 220 million followers on X asking:
“Should we consider forming a new political party in America that truly represents the 80% in the center?”
On the Offensive
This week, Musk harshly criticized Trump’s “magnificent bill,” labeling it a “repugnant disaster” that could inflate the federal deficit. His remarks have further exposed divisions within the Republican Party that threaten the bill’s passage in the Senate.
Nonpartisan analysts have suggested that the bill could potentially increase the $36.2 trillion national debt by an estimated $2.4 trillion to $5 trillion.
Trump countered, saying Musk’s opposition stems from the bill’s reduction in electric vehicle tax credits, asserting that Musk longs for his time in the White House.
“He’s not the first,” Trump commented. “People leave my administration… and eventually they miss it. Some embrace their return, while others grow resentful.”
Musk responded on X, exclaiming: “KILL the BILL,” adding that he might consider relinquishing the EV credits if Republicans eliminated the “mountain of offensive spending” within it.
He also alluded to Trump’s previous criticisms of excessive government spending: “Where is this guy today?”
When he entered government, Musk vowed to trim $2 trillion from the budget but departed having achieved only a modest cut of half a percent, leaving chaos in his wake.
His shifting political stance has provoked protests at Tesla facilities in both the U.S. and Europe, impacting sales and raising concerns among investors about Musk’s distractions.
Elon Musk and President Donald Trump in the White House Oval Office, February 11, 2025.
On Friday, President Donald Trump hosted a significant farewell event for Elon Musk in the Oval Office, marking the end of Musk’s brief and contentious role as the government’s chief cost-cutter.
The two leaders are set to hold a joint press conference at 1:30 PM local time, where Trump will attempt to portray Musk’s departure from the Department of Government Efficiency (DOGE)—a position he held for only four months—as a positive change.
Trump, 78, affectionately referred to Musk as “terrific” during a statement on Thursday, suggesting that even though Musk is returning to his ventures with SpaceX and Tesla, his impact will be enduring.
“This may be his last day, but it’s not really goodbye. He’ll always be here, supporting us along the way,” Trump wrote on his Truth Social platform.
Vice President JD Musk complimented Elon’s “incredible” work during an interview with Newsmax, assuring that the efforts of DOGE would persist.
However, this press conference will contrast sharply with Musk’s initial dramatic appearance in the Oval Office back in February, where he captured attention while visiting with his young son, even overshadowing the President at times.
During that visit, Musk, 53, was closely associated with Trump, accompanying him on Air Force One, Marine One, and during events at the White House and Mar-a-Lago.
Now, however, Musk departs Trump’s administration under less than favorable circumstances, having openly expressed his disappointment with his role and criticized the spending proposals put forth by the Republican president.
DOGE’s Controversial Actions
The DOGE initiative, driven by a right-wing agenda, aggressively pursued budget cuts across the federal government, resulting in the loss of tens of thousands of jobs.
It even led to the closure of entire departments, such as the US Agency for International Development (USAID), prompting significant reductions in overseas aid which some critics claim will adversely affect the world’s poorest populations while benefitting U.S. competitors.
Despite Musk’s grand claims when he arrived in Washington, boasting about cutting two trillion dollars with a chainsaw at a conservative event, the claimed results didn’t match his expectations.
Trump promoted DOGE’s role in eliminating “waste” and frequently cited supposed instances of fraud that Musk’s team uncovered, including social security beneficiaries supposedly older than the oldest known living person.
However, the independent resource, “Doge Tracker,” has reported only $12 billion in savings thus far, while the Atlantic estimates it’s closer to $2 billion.
Musk’s fast-paced, disruptive approach clashed with Washington norms, leading to conflicts with other cabinet members. Earlier this week, he shared his disappointment regarding Trump’s recent tax and spending measures that undermined DOGE’s fiscal cuts.
Meanwhile, Musk’s companies face challenges as well. Tesla shareholders are urging him to refocus on the company amid declining sales and protests targeting the electric vehicle manufacturer, while SpaceX has experienced several significant rocket failures.
At the Friday press conference, Musk might also face inquiries regarding a recent New York Times report alleging heavy drug use during his campaign efforts for Trump last year.
The article claimed that Musk admitted to friends that his excessive use of the anesthetic ketamine was affecting his bladder, a known consequence of chronic use.
Musk has previously acknowledged using ketamine, stating it was prescribed to help him cope with a “negative mindset,” and hints that his drug use might even be advantageous for Tesla investors.
Elon Musk attentively listening to President Donald Trump in the Oval Office, Washington, DC, February 11, 2025. — Reuters
Musk cautions that the bill will exacerbate the US budget deficit.
DOGE reforms criticized, according to the tech mogul.
Commits to prioritizing Tesla and SpaceX following backlash.
Billionaire Elon Musk has taken issue with a key spending bill proposed by Donald Trump, marking his first significant disagreement with the US president since he stepped back from his role in reducing government spending.
The tech entrepreneur, originally from South Africa, expressed that Trump’s legislation would inflate the national deficit and undermine the achievements of his Department of Government Efficiency (DOGE), which has already led to the dismissal of tens of thousands of government employees.
Previously a regular associate of Trump, Musk has recently refocused his efforts on his companies, SpaceX and Tesla. He voiced frustration that DOGE has become a “scapegoat” for public dissatisfaction with the administration.
“I was quite let down by the size of the spending bill, which doesn’t just increase the budget deficit but actively undermines our DOGE team’s work,” Musk stated in an interview with CBS News, part of which was broadcast late Tuesday.
Trump’s “One Big, Beautiful Bill Act,” which recently passed through the US House and is now headed to the Senate, is a key element of his domestic agenda, featuring a wide-ranging mix of tax breaks and spending cuts.
However, critics argue that it threatens healthcare and could increase the national debt by as much as $4 trillion over the next decade.
“A bill can either be large or appealing, but it seems challenging for it to be both. That’s my take,” Musk remarked in the interview, which will be fully aired on Sunday.
The White House attempted to minimize any perceived rift over spending without mentioning Musk directly. “The Big Beautiful Bill isn’t an annual budget bill,” said Trump’s Deputy Chief of Staff Stephen Miller on Musk’s social media platform, X, following Musk’s comments.
He added that any DOGE budget cuts would need to go through a separate legislative process targeting federal bureaucracy.
Musk’s statements signal a rare divergence from the Republican president, whom he played a significant role in supporting as the largest contributor to Trump’s 2024 election campaign.
‘Scapegoat’
Trump had appointed Musk to lead DOGE with the task of trimming government expenses, but after a turbulent start, Musk declared in late April that he would largely step back to manage his businesses.
In a separate interview with the Washington Post, Musk expressed that DOGE, which operated from the White House with a team of young technicians, had become a focal point for criticism.
“DOGE has turned into the scapegoat for all the complaints,” Musk told the newspaper at SpaceX’s Starbase launch facility in Texas ahead of the latest rocket launch.
“Whenever something negative occurs, we are blamed—even if we had no involvement.”
Musk attributed DOGE’s struggles to deeply rooted problems within the US bureaucracy, though reports suggest that his authoritative style and unfamiliarity with Washington’s political dynamics were also crucial factors.
“The federal bureaucracy is in much worse shape than I realized,” he concluded. “I knew there were challenges, but it’s a steep hill to climb to affect change in DC, to say the least.”
Despite removing tens of thousands from government payrolls and restructuring several departments, Musk has acknowledged that not all of his DOGE goals were accomplished.
His own enterprises have also faced backlash during this period. Protesters against the budget cuts have targeted Tesla dealerships, and incidents of arson have resulted in some Tesla vehicles being damaged, contributing to a slump in profits.
“Why would anyone burn a Tesla? That’s just not cool,” Musk remarked to the Post.
He has also shifted focus back to SpaceX, especially following several setbacks in his ambitions for Mars colonization. The most recent setback occurred on Tuesday when a prototype Starship exploded over the Indian Ocean.
Last week, Musk announced he would be scaling back financial contributions to political causes after investing around a quarter of a billion dollars to support Trump.
Billionaire Elon Musk announced on Tuesday that he plans to reduce his political expenditures, asserting that his electric vehicle company, Tesla, continues to thrive despite backlash from his support of former President Donald Trump.
Speaking via video link from Austin, Texas at Bloomberg’s Qatar Economic Forum, Musk said, “I’m going to significantly cut back on political donations in the future.”
As the richest man in the world, Musk previously invested hundreds of millions in Trump’s political campaign. Speculation in Washington has grown about whether he would maintain such financial support.
“If a reason for political spending comes up in the future, I might consider it. But at this moment, I don’t see any need,” he stated during a candid interview.
Musk’s remarks have sparked conversations about whether his close association with Trump is beginning to wane, especially as he steps down from his informal role addressing government efficiency, now dedicating only two days a week to the task.
Tesla, the primary source of Musk’s wealth, has faced brand challenges due to his political activities, notably his alignment with Trump and his public backing of the far-right Alternative for Germany (AfD) party. This political backdrop has resulted in protests and vandalism at Tesla dealerships across the U.S. and elsewhere.
When asked if he was concerned about the potential impact of his political positions on Tesla’s sales, Musk was dismissive, asserting the company is performing well. “Aside from a sales dip in Europe, we’re doing well globally,” he said, highlighting the resilience of Tesla’s stock price on Wall Street.
“We’ve surpassed a trillion dollars in market capitalization. Clearly, the market recognizes the situation, and (Tesla) is already making a recovery,” he concluded.
Tesla CEO Elon Musk meets former President Donald Trump during the NCAA men’s wrestling championships in Philadelphia, Pennsylvania, on March 22, 2025. — Reuters
Musk announces plans to decrease his government work commitment.
DOGE was initiated by Trump through an executive order on his first day in office.
Cabinet secretaries are expected to reclaim authority after Musk steps back from his DOGE responsibilities.
WASHINGTON: Following Elon Musk’s impending reduced role in the Department of Government Efficiency (DOGE), members of former President Donald Trump’s cabinet may seek to regain control over budgets and staffing decisions, according to two government insiders.
The Department of Government Efficiency, established by an executive order on Trump’s first day in office and led by billionaire Musk, has pursued aggressive measures aimed at downsizing the federal workforce and reducing the deficit. These actions have involved widespread layoffs, canceling contracts, and cutting down services offered to Americans.
On Tuesday, Musk revealed his intention to limit his government involvement to just one or two days a week to refocus on his struggling car company, Tesla, raising uncertainty about the agency’s future initiatives. His current role as a special government employee would likely end in May.
Musk has provided political insulation to the White House while DOGE implemented cost-cutting measures that have garnered significant backlash from career government employees. Cabinet members have reported feeling that DOGE’s personnel has overstepped their traditional authority to hire and fire staff, causing reluctance among some secretaries to comply with DOGE directives.
In recent weeks, tensions within Trump’s administration have been high concerning the level of authority given to Musk. During a cabinet meeting in March, Secretary of State Marco Rubio openly accused Musk of undermining USAID, while Transportation Secretary Sean Duffy confronted him about proposed layoffs affecting air traffic controllers, which raised aviation safety concerns, according to sources familiar with the discussions.
Cabinet members have persistently advocated for more control over budgetary decisions, and with Musk’s lesser visibility as a counterbalance, their efforts to enforce specific spending cuts rather than overall reductions are likely to progress with fewer challenges, as stated by the insiders, who requested anonymity to speak on the internal matters.
The most dramatic change could be the enhanced authority of the cabinet itself, allowing agency heads to have the final say on which initiatives move forward. This would solidify their central role in federal efficiency and fiscal strategies.
With Musk stepping back, the cabinet will gain more independence and will not require his approval on every decision, according to one of the sources.
The changing dynamics of leadership within DOGE may also prompt a reevaluation of the roles many young engineers initially recruited by Musk. Their influence might wane, and they could face heightened scrutiny regarding their qualifications and authority, given their limited government backgrounds.
White House spokesperson Harrison Fields dismissed claims that Musk’s reduced involvement indicates a shift in DOGE’s direction or influence.
“DOGE is structured in such a way that the Cabinet already possesses autonomy over spending cuts. DOGE has simply been a component of the agency,” Fields said. “There will be no changes; DOGE is functioning smoothly and is effectively aligning with the President’s agenda,” he added.
Observers of DOGE, including both supporters and detractors, predict that the push for budget cuts will remain vigorous despite Musk’s transition to part-time involvement. They point to executive orders setting ongoing changes in motion, paired with cabinet officials supporting Musk’s agenda.
“Much of what DOGE has initiated has been integrated into various agencies and is likely to continue,” said Nick Bednar, an associate professor of law at the University of Minnesota. He has monitored government layoffs and believes that agencies are unlikely to reverse DOGE’s reductions. “It’s like a train that has already left the station—it’s tough to stop,” he commented.
‘Mostly done’
Musk, a prominent supporter of Trump’s 2024 campaign and the driving force behind the government’s restructuring, has placed trusted allies in crucial government positions and sent former staffers from X and SpaceX to oversee significant workforce reductions across federal agencies.
His involvement has extended to various White House initiatives, including a federal hiring freeze, multiple agency buyout offers, and a directive for agencies to formulate plans to downsize their workforces. His once-enforced requirement for federal employees to report achievements in lengthy weekly emails has mostly subsided among cabinet officials.
“The bulk of the work needed to establish the DOGE team and align it with government financial objectives is largely completed,” Musk stated on Tuesday.
As Musk shifts his focus back to his businesses, DOGE will need to identify a successor. One potential candidate is Amy Gleason, who was appointed acting administrator by the White House in February. She noted in a court document on March 19 that Musk is not actively working at DOGE, a claim Trump has contradicted by frequently asserting Musk’s leadership role.
However, the specifics of Musk’s daily responsibilities remain unclear and will need clarification as his departure approaches.
Tom Schatz, a supporter of DOGE’s mission and president of the watchdog group Citizens Against Government Waste, suggested that Musk’s exit might actually enhance DOGE’s effectiveness.
“Musk tends to attract attention wherever he goes,” he said. “With him stepping back, it may actually operate more effectively due to reduced visibility.”
Tesla’s Profit Decline: A Deep Dive into Q1 2025 Results
Introduction to Tesla’s Financial Performance
Tesla, a major player in the electric vehicle (EV) market, has recently reported a staggering decline in its net profits for the first quarter of 2025. The results reveal a concerning trend for the manufacturer, as profits dropped by more than 70% compared to the same period last year. This blog post will explore the factors contributing to this profit downturn, the performance in different markets, and the implications for the company’s future.
Key Financial Figures
Q1 2025 Profits: A Sharp Decline
In the first quarter of 2025, Tesla’s net profits stood at $409 million. This figure marks a significant drop from the $1.4 billion reported in Q1 2024. This decline continues a negative trend observed in the previous year, where the company saw a 45% decrease in net profits between Q1 2023 and Q1 2024. This set of financial results raises questions about the sustainability of Tesla’s profitability in the face of increasing competition and market challenges.
Market Performance Analysis
A Regional Breakdown of Sales
Tesla’s sales performance varied significantly across different markets during Q1 2025. The company’s European market, in particular, faced major challenges, with most countries reporting declines in EV registrations. However, the UK emerged as a notable exception, recording year-on-year growth in registrations. This disparity underlines the uneven competitive landscape within the European EV market, where growth opportunities exist but are not uniformly accessible to all manufacturers.
Competition from China
Competition from Chinese EV manufacturers has intensified, leading to a more challenging environment for Tesla. As some EV makers contend with high costs and a slower-than-expected demand growth, Tesla’s latest figures suggest that the company may be struggling to maintain its market dominance amidst this fierce competition. The negative reception of CEO Elon Musk’s political activities could further compound Tesla’s challenges, affecting investor confidence and public perception.
Strategic Outlook
Elon Musk’s Focus on Tesla
During a recent investors’ call, Elon Musk announced his intention to allocate more of his time and attention to Tesla now that significant government-related tasks are completed. This strategic shift could signal to investors that the company is refocusing on its core business operations, which may be vital for reversing the current profit decline. Musk’s leadership and direction remain crucial for Tesla as it navigates through tumultuous market waters.
Sales Performance in the US
Despite the alarming decline in profits, Tesla’s sales figures in the United States still demonstrate its stronghold in the market. With 128,100 units sold in Q1 2025, Tesla outperformed all other EV brands combined, with Ford trailing behind at 22,550 units sold. This success indicates that while the company faces challenges, it continues to lead in terms of sales volume, which is critical for maintaining its market presence and brand loyalty.
Conclusion: The Road Ahead for Tesla
As we’ve explored the factors contributing to Tesla’s 71% profit decline and the performance of its various markets, it becomes evident that the company is at a pivotal moment. Ongoing challenges from competition, market dynamics, and leadership focus will play significant roles in shaping Tesla’s future strategies and financial outcomes. The transition into succeeding quarters will be closely monitored by investors and industry observers alike, as they await signs of recovery and renewed growth from the electric vehicle pioneer.
It has been some time since Tesla revamped its Model 3 electric vehicle and subsequently rolled out an updated version of the Model Y in the U.S. market. However, recent rumors suggest that the company’s efforts to develop a more affordable SUV, set to be assembled in the United States, are experiencing delays.
As reported by Reuters, Tesla initially aimed to produce nearly 250,000 units of its budget-friendly Model Y variant by 2026. This timeline has now been pushed further back, and details about a revised launch plan for the vehicle, codenamed E41, remain uncertain.
According to sources, “Mass production of the lower-cost Model Y, internally referred to as E41, is slated to start in the U.S., but this will happen several months later than previously outlined in Tesla’s public strategy. Revised timelines range from the third quarter of this year to early next year,” the report claims.
What can we expect from a more affordable Model Y?
Christian de Looper / Digital Trends
The scaled-down Model Y variant is expected to have a smaller design and might be priced about 20% lower than its counterparts. For reference, the Long Range All-Wheel Drive (AWD) version currently sells for around $41,490 in the U.S., inclusive of a $7,500 federal tax credit.
The new model is anticipated to be priced slightly under $40,000 before any applicable tax credits, which would put Tesla in direct competition with brands such as Hyundai, Kia, Chevrolet, Toyota, Volkswagen, and Ford.
Notably, Tesla has increased its local parts sourcing in recent quarters, which may mitigate the impact of tariffs if the company proceeds with mass production of the E41 variant. Nevertheless, the landscape remains unpredictable, as Tesla has recently experienced a notable decline in sales.
Christian de Looper / Digital Trends
Tesla’s market share dipped below 50% in California during the first quarter of 2025, a significant territory for electric vehicles in the country. “An aging product lineup and backlash against Elon Musk’s political stances may be major factors contributing to the drop in Tesla’s BEV market share,” the California New Car Dealers Association indicated regarding the decline.
In addition to launching a more affordable Model Y, Tesla is currently engaged with its Cyber Cab project. Interestingly, the Reuters report also suggests that Tesla is developing a simplified version of its Model 3. The company was reportedly considering an economical EV priced around $25,000, but those plans seem to have been put on hold for the time being.
Tesla has undeniably been a pioneer in the electric vehicle (EV) market, revolutionizing the industry with its innovative technology and forward-thinking vision. However, recent reports indicate a significant decline in Tesla’s sales across various European markets, sparking discussions about challenges the company faces amid rising competition and public sentiment.
The Decline in Sales: A Statistical Snapshot
According to data published by Reuters, Tesla experienced alarming sales declines in several key European countries during March. Notably, the figures reveal a substantial drop in quarterly sales, raising questions about the future of the brand in Europe.
Major Markets Affected
Germany: Tesla’s sales plummeted by an astonishing 62%. As one of the largest automotive markets in Europe, this decline is particularly concerning for the company.
Sweden: A decrease of 55% was recorded, suggesting that Tesla is losing ground amidst stiff competition.
Denmark: Similar to Sweden, sales dropped by 55%, indicating a trend of consumers veering away from Tesla.
Netherlands: With nearly 50% fewer sales, the Netherlands mirrors the downturn Tesla is experiencing in neighboring regions.
France: Sales here decreased by 41%, adding to the growing list of challenges faced by Tesla.
The UK: A Silver Lining?
Despite the widespread downturn in other European markets, the United Kingdom emerged as an outlier for Tesla. The UK remains the company’s largest market in Europe, with a slight sales increase of 3.5% in the first quarter of 2025. This positive development is notable, especially given the escalating competition in the electric vehicle segment.
Market Share Trends
While Tesla saw growth in sales in the UK, it is essential to recognize that its market share fell by more than 4 percentage points, landing at 10.7%. This decline highlights the dynamic nature of the EV market in the UK, where numerous manufacturers are introducing competitive models, intensifying the battle for market dominance.
Factors Influencing the Decline
Rise of Competition
One of the most pressing issues Tesla faces is the emergence of Chinese car manufacturers and other automakers that are aggressively entering the European EV landscape. These competitors often provide more affordable options, which can influence consumer purchasing decisions, especially in price-sensitive markets.
Changing Consumer Preferences
Switching consumer loyalties can also be attributed to various factors, including shifting attitudes toward brands based on their leadership and political affiliations. Recent controversies surrounding Elon Musk may have influenced public perception and, consequently, consumer choices.
Record EV Sales Landscape
Despite Tesla’s struggles, it’s essential to understand that overall electric vehicle sales in the UK have been surging, indicating a robust market. The increase in total EV sales means that while Tesla may be losing ground, the demand for electric vehicles is growing, providing opportunities for other manufacturers to thrive.
Conclusion
Tesla’s recent sales declines in various European markets serve as a poignant reminder of the ebbs and flows in the electric vehicle industry. With escalating competition and changing consumer preferences, the company must navigate these challenges wisely to maintain and enhance its market position.
