Elon Musk, the larger-than-life entrepreneur behind Tesla and SpaceX, is back running his companies full-time after a whirlwind role in Washington, D.C., but the road ahead looks rocky. Fresh from shaking up government spending, Musk now faces supply shortages, angry regulators, and a world rattled by his political ties, leaving workers, investors, and everyday Americans wondering what’s next for his empire.
Musk spent months leading Trump’s Department of Government Efficiency, slashing $155 billion in federal costs by April 2025. The job won him fans among budget hawks but left his businesses on autopilot. Now, Tesla’s U.S. sales are down 15% as tariffs jack up prices, SpaceX is stuck waiting for approvals to grow its Starlink network in India, and X Corp is wrestling with new U.S. rules on online content. “I’m ready to roll up my sleeves,” Musk said, brushing off doubts about his focus. But Tesla’s finance chief, Vaibhav Taneja, was blunt: “Trade wars and supply headaches are hitting us where it hurts.”
Musk’s D.C. adventure is part of the problem. His push to cut red tape gave businesses a boost, but it ruffled feathers among regulators now eyeing his companies closely. The government is probing Tesla’s Autopilot after recent crashes, and SpaceX’s satellite plans are under review. Musk’s cheerleading for Trump’s tariffs—calling them “a must” to save U.S. jobs—has also backfired, with China slapping export bans on battery-making minerals, forcing Tesla to scramble for pricier options. Its Shanghai factory, a cash cow, now faces steep new taxes.
The fallout’s hitting home. Investors like Seattle’s Karen Lopez are holding tight, saying, “Elon’s a genius—he’ll figure it out.” But Tesla workers, like one California mechanic who didn’t give his name, feel the strain: “He’s been in D.C., and we’re falling behind.” Customers are grumbling, too; Atlanta’s Lisa Nguyen paid $6,000 more for a Tesla Model 3. Analyst Sarah Kim from Morgan Stanley sees trouble ahead. “Musk’s political baggage could scare off buyers abroad,” she said. Small suppliers, counting on Tesla’s orders, are nervous as factories slow down.
The stakes are huge. Tesla and SpaceX employ over 140,000 people, driving breakthroughs in cars and space travel. Tesla’s stock is down 8% this year, and SpaceX’s $350 billion value depends on Starlink’s growth, now at risk. X Corp’s ad sales, off 20%, add to the pressure. If Musk stumbles, it could jolt U.S. innovation and jobs, hitting communities hard.
Musk’s betting on big moves to turn things around. Tesla’s working on a $25,000 car for 2026, SpaceX plans 120 rocket launches next year if regulators agree, and X Corp is testing new AI tools to win back users. But with U.S.-China trade talks teetering and regulators circling, he’s got his work cut out. “Elon’s got the vision, but he needs to deliver,” Kim said. For now, America’s watching—hoping Musk can steer his companies through the storm while keeping prices and dreams within reach.
