NewsElon Musk's advisory role sparks Treasury clash and Tesla woes

Elon Musk's advisory role sparks Treasury clash and Tesla woes

Elon Musk, a well-known billionaire and advisor to Donald Trump, has faced criticism even from supporters of the US president. His actions are regarded as problematic by the administration, reports the "Washington Post".

Another argument in the White House. Musk is to blame.
Another argument in the White House. Musk is to blame.
Images source: © Getty Images

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 criticised 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 implement changes within the IRS agency, leading to a confrontation with Treasury Secretary Scott Bessent.

Conflict with the Treasury Secretary

Musk, as the head of the Department of Government Efficiency (DOGE), attempted to promote a mid-level employee to a senior position in the IRS without Bessent's knowledge. The conflict culminated in a loud argument at the White House, which Bessent won. The dispute, worsened by Bessent's repeated thwarting of DOGE's ambitions in subordinate institutions, took place in the White House "within earshot of President Donald Trump" - claim sources for the "WP".

After just three days in office, the IRS commissioner appointed by Musk was forced to resign.

The argument between Musk and Bessent caused moderate shock at the White House, even though such behaviour 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 role as an advisor to Trump is fraught with controversy. His department has fired, or announced plans to fire, 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 criticised cabinet members, including Secretary of State Marco Rubio and Transportation Secretary Sean Duffy. Regarding 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 waned. Polls indicate that the majority of voters believe that Musk wields too much influence over 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 experiencing the consequences of his actions. The company's revenue declined by 71% in the first quarter of this year, and Musk claims that protests against Tesla are organised by groups benefiting from "those who were receiving the wasteful and fraudulent dollars."

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