How much must Elon Musk lose before he gives up on DOGE and Trump?

Source Cryptopolitan

The political bromance between Elon Musk and Donald Trump could end in one of two ways: Horribly wrong or a great America. Have we seen this before? Yes, quite not really, but it was there with Joe Biden and Barrack Obama. How did that end? The last 4 years with Biden as president speak for themselves.

Tesla CEO Elon Musk and President Donald Trump, the world most wealthiest meets the world’s most powerful and opinionated leader. With Musk and Trump, it’s a relationship forged in power, influence, and a shared disdain for government bureaucracy. 

The two are jointly fighting against Washington’s red tape, or at least that’s what it looks like. Chatter on social media, sentiments from liberals, and what Trump likes to call “fake news media” say that Musk is leading a hostile takeover of the US government, and they expect it to lead to a fallout with POTUS.

But a fallout is just the beginning of what the world’s richest man can lose; He has businesses to run, and an empire to look after. Is getting deep into politics good for Elon? Maybe not.

The Musk-Trump bromance: 2024’s biggest highlight

Left-wing politicians will tell you that Musk’s backing of Trump was no casual endorsement: it was an investment. According to a Washington Post insight, the billionaire poured donations north of $288 million into Trump’s campaign, seeing in him a president willing to slash government oversight and push policies that favored the “will of the American people.”. 

In return, Musk secured not just influence in Washington, but a direct seat at the table. Trump tapped him to lead the Department of Government Efficiency, conveniently nicknamed “DOGE” (a nod to the meme cryptocurrency Musk has nursed to popularity).

Almost a month since the US President officially signed DOGE into office, Musk’s role in Washington looks far beyond “mere advisory duties.” His team of tech-savvy operatives, which democrats have labelled “young and underqualified,” have gained access to federal agencies, freezing budgets, cutting departments, and dismantling regulatory bodies, reportedly under Trump’s instructions. 

Agencies like USAID and the Consumer Financial Protection Bureau were shuttered overnight. Treasury and State Department data, including intelligence records and even employees’ private financial information, reportedly fell into DOGE’s hands.

Some are convinced DOGE is operating completely without oversight, a sentiment the 47th POTUS vehemently disagrees with.

CNN recently interviewed Trump alongside Musk to ask him if there was any friction between the two MAGAnomics front-runners. The former said he “knows they are trying to drive him and Elon apart,” referring to democratic party leaders who have been pushing the “President Elon Musk” narrative on news publications.

We have breaking news, Donald Trump has ceded control of the Presidency to Elon Musk. President Musk will be attending a cabinet meeting,” joked Trump, “It’s just so obvious, they are bad at it. Because of they were good at it I’d never be President.”

So, is Musk really overshadowing the CIC of the United States? Well, that’s one way to look at it. But we know how much Trump likes to be heard, and if he is supportive of the US “First Buddy” ravaging through Washington D.C., then he probably thinks that’s what’s best for America.

What does Musk stand to lose?

When public sentiment finally turns, it is Musk, not Trump, who will likely bear the brunt of the backlash. The Tesla CEO’s aggressive push to overhaul the government, coupled with his “expressive” political statements, especially on X is beginning to tarnish his business empire.

Since peaking in December at $479.86 per share, the Tesla stock has plummeted 25.88%, closing at $355.84 this business week. A survey of potential car buyers, cited by Forbes revealed that two-thirds would not even consider purchasing a Tesla today.

Musk’s political entanglements, his hands-on involvement in Washington, and his brash style are turning off the very consumer base that made Tesla successful in the first place. No doubt Democrats will also urge their supporters to boycott anything to do with his businesses.

Stephen Gengaro of Stifel noted that Tesla’s future is closely tied to Musk’s brand, and right now, that brand is polarizing. “Democrats are skeptical of handing over government data to a non-elected billionaire,” he said, adding that Tesla’s target market overwhelmingly leans left. 

The damage isn’t limited to Tesla, it has trickled down to his net worth. Forbes’ recent calculations show that Musk’s net worth has gone down by $42.8 billion, although he is still over $100 billion richer than the world number two, Trump-aligned Mark Zuckerberg.

Despite the mounting losses, Musk insists he isn’t in fixing the US economy for the money, famously declaring, “Offer me money, offer me power, I don’t care.” His focus, he claims, is on reshaping government inefficiency, rooting out corruption, and leading a so-called “revolution of the people.”

Will Musk lose everything?

The consequences of Musk’s political gambit are becoming more apparent by the day. Lawsuits against DOGE’s activities are piling up, and concerns over constitutional overreach are following the trend. 

Supporters like popular podcaster Joe Rogan say the Tesla CEO isn’t going to “steal everyone’s money because he has $400B.” Let’s not forget he runs social media platform X, the go to public forum for agendas and opinions. His net worth might experience a little slump, but all the noise might not bring him completely down.

He’s a super genius that has been messed with. When you’ve been f***** with by these nitwits that hide behind three-letter agencies, and you’re dealing with one of the smartest people alive helping Donald Trump get into office and find out what corruption is really going on, you messed up,reiterated Rogan.

Vice President JD Vance’s recent suggestion that the White House could simply ignore court rulings has only fueled fears of a brewing crisis. Meanwhile, America’s foreign allies are growing uneasy over Musk’s unchecked influence, with some accusing him of meddling in global politics.

Despite it all, in Elon’s mind, this isn’t about Trump, it’s about his own vision for America. But with Tesla’s stock tumbling, his businesses facing boycotts, and even his closest allies questioning his endgame, the question remains: How much must Musk lose before he gives up on DOGE and Trump?

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
US August PPI Preview: Producer Inflation May Reaccelerate, How Will US Stocks, Dollar, and Gold React?The U.S. Bureau of Labor Statistics will release the August Producer Price Index (PPI) at 8:30 a.m. ET on September 10. Against the backdrop of U.S. August non-farm payrolls significantly
Author  TradingKey
8 hours ago
The U.S. Bureau of Labor Statistics will release the August Producer Price Index (PPI) at 8:30 a.m. ET on September 10. Against the backdrop of U.S. August non-farm payrolls significantly
placeholder
Brent Crude Surpasses $100 Mark as Escalating Middle East Conflict Sparks Market ConcernsOn September 9, Brent crude futures broke above $100 per barrel intraday, crossing this threshold for the first time since July 24. As the military conflict between the US and Iran contin
Author  TradingKey
9 hours ago
On September 9, Brent crude futures broke above $100 per barrel intraday, crossing this threshold for the first time since July 24. As the military conflict between the US and Iran contin
placeholder
US dollar clings to nine-week lows near 98.4 as Brent nears $100 and the yen hits a seven-month high — five events to watch todayThe dollar is pinned near nine-week lows even after a blockbuster jobs report, as an oil spike toward $100, a surging yen and China's reflation data crowd the driver's seat. Five key events to watch today: Brent at $99.46, USD/JPY at 154, China CPI/PPI, PBOC gold buying, and Thursday's PPI / Friday's CPI ahead of the September 15-16 FOMC.
Author  Eric Nkando
11 hours ago
The dollar is pinned near nine-week lows even after a blockbuster jobs report, as an oil spike toward $100, a surging yen and China's reflation data crowd the driver's seat. Five key events to watch today: Brent at $99.46, USD/JPY at 154, China CPI/PPI, PBOC gold buying, and Thursday's PPI / Friday's CPI ahead of the September 15-16 FOMC.
placeholder
Today’s Market Recap: Oil Nears $100, US Stocks Fall, AI Chip Stocks Buck Trend as Intel Surges Over 9%Tracking Market TrendsTradingKey - On September 8 Eastern Time, the three major U.S. stock indices closed lower across the board, with the Dow falling by more than 1%. Further escalation in the Middle
Author  TradingKey
17 hours ago
Tracking Market TrendsTradingKey - On September 8 Eastern Time, the three major U.S. stock indices closed lower across the board, with the Dow falling by more than 1%. Further escalation in the Middle
placeholder
Gold slumps to near $4,350 amid oil-driven inflation fears, US inflation data in focusGold price (XAU/USD) falls to near $4,350 during the early Asian session on Wednesday. The precious metal faces some selling pressure as rising oil prices fueled inflation ‌concerns and boosted expectations for a rate hike by the Federal Reserve (Fed) in September.
Author  FXStreet
17 hours ago
Gold price (XAU/USD) falls to near $4,350 during the early Asian session on Wednesday. The precious metal faces some selling pressure as rising oil prices fueled inflation ‌concerns and boosted expectations for a rate hike by the Federal Reserve (Fed) in September.
goTop
quote