Musk's clash with Treasury sparks backlash, hits Tesla hard
Elon Musk, a well-known billionaire and advisor to Donald Trump, has even drawn criticism from supporters of the U.S. president. His actions are viewed by the administration as problematic, reports the "Washington Post".
What you need to know
- Elon Musk attempted to interfere in government affairs, leading to a conflict with Treasury Secretary Scott Bessent.
- Musk lost popularity among voters, and his actions are criticized by conservative media.
- Tesla reported a 71% drop in revenue in the first quarter, linked to the controversies surrounding Musk.
Elon Musk, who once again tried to interfere in government affairs, has become a troublesome advisor for Donald Trump's administration. According to reports by the "Washington Post", Musk attempted to make changes within the IRS agency, leading to a conflict with Treasury Secretary Scott Bessent.
Conflict with the Treasury Secretary
Musk, as the head of the Department of Government Efficiency (DOGE), attempted behind Bessent's back to promote a mid-level employee to a senior position in the IRS. The conflict culminated in a loud argument in the White House, which Bessent won. The ruckus, all the worse since Bessent had repeatedly thwarted DOGE's ambitions towards his subordinate institutions, took place in the White House "within earshot of President Donald Trump," claim sources for the "WP".
After three days in office, the IRS commissioner installed by Musk had to resign.
The argument between Musk and Bessent caused a moderate shock in the White House, even though such behavior is considered a serious breach of protocol. "It's Elon being Elon," said an administration representative to the "Washington Post".
Controversial actions by Musk
Musk's activity as an advisor to Trump is full of controversy. His department has fired or announced the firing of tens of thousands of federal employees, prompting protests. Some of these decisions were blocked by the court. During meetings and in posts on platform X, Musk criticized cabinet members, including Secretary of State Marco Rubio and Transportation Secretary Sean Duffy. About the economic advisor Peter Navarro, he wrote that he is "dumber than a sack of bricks."
Decline in popularity and Tesla's problems
Musk's unpredictable behaviour has alienated him from the president's staff, and his popularity among voters has decreased. Polls indicate that the majority of voters believe Musk has too much influence on the government. Fox News and other conservative media warn that Musk has become a "political burden" for the administration.
Tesla, which Musk owns, is also feeling the repercussions of his actions. The company's revenue dropped by 71% in the first quarter of this year, and Musk claims that protests against Tesla are sponsored by groups benefiting rom "those who were receiving the wasteful and fraudulent dollars."
