Elon Musk’s recent resignation from that position at the White House. This decision has resulted in protests at Tesla stores around the world. Musk was the head of the city-state’s Department of Government Efficiency until he abruptly resigned in May. Since exiting, he’s been a vocal opponent of former president Donald Trump and the GOP. He sounds the alarm over their management of big controversial topics, like fighter jet records tied to Jeffrey Epstein and hundreds of billions in spending bills.
Yet under Musk’s leadership, Tesla has been a frequent case study in economic disaster. These changes helped stem the bleeding as the company still suffered a 12% drop in total revenue. It dropped to $22.4 billion during Q2 2025 year-over-year. In particular, revenue from automobile sales dropped 16%. This trend is especially troublesome as competition is increasing. In fact, Chinese EV-maker BYD recently overtook Tesla in overall car sales this past year for the first time.
Even as Musk wrestled with these financial challenges, he has led the market with bold promises for Tesla’s future. He’s hyped up a future, on-demand fleet of self-driving cars, aka “robotaxis”, as one of the company’s most important profit drivers. Recently, Tesla unveiled a new initiative allowing individuals to rent out their personal Teslas to the fleet, which Musk believes will be transformative.
“It will be a very big deal when people can release their car to the fleet and have it earn money for them,” – Elon Musk.
The aftereffects of Musk’s deep state government play have successfully extended beyond his company and sparked some political aspirations. He has floated plans to start his own new fourth political party, showcasing his deep disdain and unhappiness with the current political situation.
Despite his criticisms of the Trump administration and its policies, Musk’s control of Tesla remains significant, with analysts reporting he holds approximately 13% of the company’s shares. His latest comments highlight the tension between those two constituencies and the careful line he is trying to walk.
“As I mentioned before, I think my control of Tesla should be enough to ensure that it goes in a good direction, but not so much control that I can’t be thrown out if I go crazy,” – Elon Musk.
Musk’s departure from government service and his outspoken nature have contributed to uncertainties surrounding Tesla’s operations. The company cited a “sustained uncertain macroeconomic environment resulting from shifting tariffs” and “unclear impacts from changes to fiscal policy and political sentiment” as factors affecting its performance.
Tesla has introduced a scaled-back version its RoboTaxi over in Austin, Texas. This step is clearly intended to generate fresh excitement in an otherwise lackluster market as the company struggles with cratering sales numbers. The business of automotive is changing quickly. Musk’s unique role as both an entrepreneur and a political commentator, in this case, directly influences public perception and fuels operational realities for Tesla.
