By Charles Switzer
1:55am PDT, Apr 24, 2025
Musk's Influence in Trump's Circle Declines Following Tesla's Poor Earnings Report
Tesla CEO and DOGE leader
Elon Musk's influence within President
Donald Trump's inner circle appears to be diminishing, according to CNN's
Jeff Zeleny. This assessment came shortly after Tesla's Q1 earnings report, which revealed troubling figures for the electric carmaker. Musk's reduced visibility in the Trump administration follows a series of challenges facing both his business and his advisory role, as some speculate it could come to an end sooner than expected.
One area of contention between two of the world's most powerful people is said to involve Trump's controversial tariffs and Musk's requests in that area.
Here's everything to know.
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Tesla's Struggles and Musk's Upcoming Departure from DOGE
On Tuesday, April 22, Tesla's net income
took a massive hit, plummeting by 71 percent and falling far short of analysts' expectations, which had predicted earnings of 41 cents per share.
Instead, Tesla reported just 27 cents per share. On the earnings call, Elon Musk confirmed he would likely step down from his role as the head of the Department of Government Efficiency in May, stating, "I expect to work on government business one to two days per week for as long as Trump wants."
This decision marks a significant shift in Musk's role, as his influence on government affairs and his position within the White House has started to diminish.
Musk's Relationship with Trump and Tesla's Struggling Stock Price
Elon Musk's close relationship with Donald Trump, including his endorsement of the president last year, has significantly impacted Tesla's public image and stock price.
Since Trump's second inauguration, Tesla's stock has dropped more than 40 percent, largely due to the repercussions of Musk's actions and the ongoing tension over U.S. trade policies. In addition, Trump's tariffs have begun
to affect Tesla, with Musk confirming during the earnings call that the company would stop importing parts from China due to the prohibitive cost created by the tariffs.
"Tariffs are still tough on a company where margins are still low," Musk said. "I just want to emphasize that the tariff decision is entirely up to the president of the United States."
Musk's Role in Tariff Decisions
Despite Elon Musk's clear influence in advocating for lower tariffs, he acknowledged that the final decision rests with Donald Trump.
"I will weigh in with my advice with the president, which he will listen to my advice. But then it's up to him, of course, to make his decision… So, you know, I'll continue to advocate for lower tariffs rather than higher tariffs, but that's all I can do."
Musk's comments reflect the limited power he has in persuading Trump to ease up on trade policies that have
directly impacted Tesla's financial performance.
Zeleny Comments on Musk's Waning Influence at the White House
On Tuesday, Jeff Zeleny appeared on CNN's OutFront, where he discussed Elon Musk's Cabinet-level decline.
He noted that despite Musk's aggressive approach to government bureaucracy, his influence with President Donald Trump has diminished over time.
"By saying he will step aside, this is just one more indication that we've really been able to see almost week by week by week, his influence is waning," Zeleny said.
He continued, "His presence here at the White House is waning. At the very beginning, in the first of several weeks, Elon Musk was in the Oval Office so many times, as we saw. He was in the cabinet room. He was omnipresent. He was everywhere. We've not seen him nearly as much."
This shift reportedly suggests the growing gap between Musk's influence and his visibility in the administration, while also highlighting the challenges he has faced in trying to shape government policy.
