Elon Musk has claimed that SpaceX, Tesla xAI and X as well as The Boring Company are all “suffering’ because of his association with Trump.
Musk’s statement comes as his relationship with White House is under increased scrutiny, and potential conflicts of interests arise from both his position as a business leader who also happens to be a government special employee.
Musk said in an interview on Fox News Special Report that he was “not a favorite to work for the government.”
The man said that “his companies are suffering” because he is in government.
Musk became a government special employee following the election victory of President Donald Trump.
Musk is not the official head of White House DOGE, the office that leads the efforts by the administration to shrink the federal government. However, he has often been referred to as the de facto leader on this issue.
Tesla’s problems: A symbol of strain?
Musk cited the challenges Tesla has faced recently as an example of his strain from government work.
Stocks of the company have dropped amid a disappointing sales performance in global markets and concerns from investors that CEO spends too much time out of his office.
Tesla has also faced protests, vandalism, and assaults against their showrooms and cars.
Wall Street has begun to express concern over the entire brand. The impact on the other businesses of his is unclear.
Musk acknowledged that he had “great difficulty” in managing his businesses and urged Tesla shareholders to “hold on to your stocks.”
Government contracts and subsidy: a complex relationship
Musk’s empire received substantial support through government contracts and subsidy, which raises questions regarding potential conflict of interests.
Musk was investigated by government agencies in the past. The DOGE Office of the White House, however, took steps to weaken, or even eliminate, those agencies.
Trump, in a show of support at a recent media event on the South Lawn of the White House, stood before several Teslas and praised the electric cars he had previously hesitated to promote.
Tariffs, trade and uncertainty: how to navigate an uncharted landscape
Trump’s administration has relied on tariffs to encourage production and influence international trade. This has led to an unsteady economic environment.
Wall Street estimated that Trump’s 25% tariffs on all imports of autos and auto parts could cause the auto industry to lose up to $82 billion.
Musk admitted that the tariffs would affect his company, stating that Tesla may benefit as its vehicles are all assembled in the US.
Business Insider’s request for a comment from a Tesla spokesperson was not answered.
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