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Musk Resigns: Is a Rift Emerging Between Silicon Valley and MAGA? (AI Translation)

Published: May. 31, 2025  12:42 p.m.  GMT+8
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2025年2月26日,美国华盛顿,美国总统特朗普召开其第二任期的首次内阁会议,马斯克出席,他掀开外套,展示印有“技术支持”字样的T恤。图:Andrew Harnik/视觉中国
2025年2月26日,美国华盛顿,美国总统特朗普召开其第二任期的首次内阁会议,马斯克出席,他掀开外套,展示印有“技术支持”字样的T恤。图:Andrew Harnik/视觉中国

文|财新周刊 罗子琳

By Caixin Weekly’s Luo Zilin

  “一项法案要么宏大,要么美丽,但不确定两者是否能够兼得。”在告别一群被认为世界上最有权势的同僚之前,埃隆·马斯克用嘲笑给予最后一击。

“A bill can be grand, or beautiful, but it’s uncertain whether it can be both,” Elon Musk said, delivering a final jab with a note of sarcasm before bidding farewell to a group widely regarded as some of the world’s most powerful peers.

  马斯克批评的是美国总统特朗普称为“美丽大法案”的一份税收与减支法案,这份体现特朗普竞选承诺、号称让美国再次伟大的2.0税改议案,于5月21日在众议院惊险通过,它还将接受参议院的考验。特朗普将此视为胜利,但作为总统亲密无间的盟友,马斯克认为,法案不仅未能遏制预算赤字,反而可能进一步扩大财政缺口,这与其领导的政府效率部所倡导的改革方向背道而驰。

Musk’s criticism was directed at a tax and spending reduction bill touted by President Trump as the “Beautiful Act.” The bill, reflecting Trump’s campaign promises and billed as the “Make America Great Again 2.0” tax reform package, narrowly passed the House of Representatives on May 21 and now faces scrutiny in the Senate. Trump hailed the measure as a victory. However, Musk, a close ally of the president, argued that the bill not only fails to rein in the budget deficit but could actually worsen the fiscal gap—a move Musk believes runs counter to the reform agenda promoted by the Office of Government Efficiency that he leads.

  5月30日,马斯克的“特别政府雇员”身份,正式触达每年工作时长不得超过130天的上限。世界首富离开公职回归商界,他领导的“政府效率部”这一各方关注的特殊政府实体,以及特朗普政府改革大业的未来,也因此陷入不确定性。

On May 30, Elon Musk’s status as a “special government employee” officially reached the annual work limit of 130 days. With the world’s richest man stepping down from public office and returning to the business sector, the much-scrutinized “Department of Government Efficiency” he led—a unique government entity—has also been thrown into uncertainty, as has the broader future of the Trump administration’s sweeping reform initiatives.

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Caixin is acclaimed for its high-quality, investigative journalism. This section offers you a glimpse into Caixin’s flagship Chinese-language magazine, Caixin Weekly, via AI translation. The English translation may contain inaccuracies.
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Musk Resigns: Is a Rift Emerging Between Silicon Valley and MAGA? (AI Translation)
Explore the story in 30 seconds
  • Elon Musk led the Department of Government Efficiency in Trump's administration, aiming to cut $2 trillion in federal spending and reduce 300,000 government jobs, but achieved only 8% of his original savings target amid major legal, political, and bureaucratic resistance.
  • Musk's rapid reforms incited internal conflicts, public backlash, and lawsuits over legality, conflicts of interest, and labor rights; his popularity and political influence waned significantly.
  • Despite Musk’s resignation after 130 days, the government’s cost-cutting agenda continues under other officials, but the impact and efficiency of reforms remain contested.
AI generated, for reference only
Explore the story in 3 minutes

Elon Musk’s brief tenure in U.S. government, as head of the newly formed Department of Government Efficiency under President Trump, marked an unprecedented experiment in importing Silicon Valley management into federal reform. Touted initially as the “Make America Great Again 2.0” campaign, the Trump administration’s efforts—including Musk’s heavy involvement—aimed to streamline bureaucracy, slash government spending, and cut staff [para. 1][para. 2][para. 3]. However, the reality has proven far more complex, contentious, and ultimately less productive than Musk or Trump had envisioned.

Musk, founder and CEO of multiple high-profile tech companies, transitioned to government after founding the America Political Action Committee to support Trump, amplifying his influence throughout the 2024 campaign and Trump’s successful re-election [para. 4]. Following Trump’s inauguration on January 20, 2025, Musk was appointed director of the Department of Government Efficiency, with broad mandates to cut federal expenditures and improve governmental efficiency [para. 5]. Musk’s tenure, however, was legally ambiguous—his “special government employee” status limited him to 130 working days per year and did not require Senate confirmation, yet he exercised unusually wide authority, prompting a raft of lawsuits and accusations of conflict of interest [para. 30][para. 31][para. 33].

Upon assuming office, Musk rolled out dramatic measures: halting all U.S. foreign aid, suspending Diversity, Equity, and Inclusion (DEI) staff, freezing most government hiring, and initiating large-scale buyout plans for federal employees [para. 15]. He pushed for deep staff cuts, shuttered the U.S. Agency for International Development, and attempted to access and control sensitive federal systems such as the Office of Personnel Management and General Services Administration [para. 18][para. 21]. The Government Efficiency team, staffed mostly by Musk loyalists with little government experience, pursued an aggressive “chainsaw approach,” resulting in the termination of more than 748 office leases and cancellation of nearly $900 million in federal contracts [para. 23][para. 28][para. 29].

Yet, the backlash was swift and significant. Musk’s attempt to mandate weekly work reports met resistance from core departments like State, Defense, and Treasury, leading to open conflict within Trump’s Cabinet and forcing Musk to partly withdraw the order—the first public setback of his reform drive [para. 19][para. 22][para. 25][para. 27]. Musk’s legal and ethical standing was increasingly questioned, particularly after disputes over layoffs, data access, and allegations of benefiting his businesses, such as Tesla and X (formerly Twitter) [para. 30][para. 32][para. 39].

Externally, Musk clashed with key figures in the Trump administration over trade policy, especially after U.S. tariff announcements depressed tech stocks and cost Musk billions personally [para. 36][para. 38]. Protests erupted in the U.S. and Europe targeting Musk, Tesla’s profits and deliveries plummeted, and Musk’s public approval outside the Republican base cratered [para. 41][para. 46][para. 47].

Politically, Musk’s high-profile bid to influence the Wisconsin Supreme Court race backfired, intensifying criticism of “billionaire interference” in politics and further alienating swing voters [para. 48][para. 51][para. 54][para. 55]. Facing plummeting effectiveness and mounting opposition, Musk started stepping back by late April, and by May 30, his government tenure had reached the statutory limit [para. 56][para. 57][para. 59]. Only 8% of his original $2 trillion spending cut goal was achieved—a purported $160 billion in savings, most of which may be statistical artifacts, according to critics [para. 64][para. 70][para. 71].

Despite the chaos and Musk’s diminished role, the Trump administration remains committed to deep spending cuts, proposing a $163 billion reduction in non-defense discretionary spending for 2026, while staff reductions and restructuring are expected to continue [para. 74][para. 75][para. 77]. Analysts forecast that Musk’s reforms, though little changed in direction, have left the bureaucracy unsettled, with hidden costs from layoffs and lawsuits possibly surpassing $135 billion, and the overall savings to taxpayers unclear [para. 86][para. 88][para. 89].

Ultimately, Musk’s tenure exemplifies both the boldness and naiveté of attempting radical top-down reform in the U.S. government. While many of his actions satisfied calls for efficiency, structural consequences—legal, financial, and institutional—will haunt the federal apparatus for years. The long-term success of these reforms, especially under a Trump administration that prizes loyalty and spectacle, remains highly uncertain [para. 72][para. 81][para. 91].

AI generated, for reference only
Who’s Who
Tesla
特斯拉
According to the article, Tesla is an electric vehicle company founded and led by Elon Musk, who also serves as its CEO. During Musk’s time involved in the Trump administration, Tesla’s stock became a political focal point, notably surging after Trump’s election win. However, in 2025, Tesla’s performance declined, with Q1 net income dropping by 71% and April deliveries in the EU falling 53%, largely due to political controversies surrounding Musk.
SpaceX
SpaceX
According to the article, SpaceX is a company led by Elon Musk, who serves as its Chief Executive Officer and Chief Technology Officer. It is included among the various enterprises under Musk’s leadership, alongside Tesla, SolarCity, Twitter (now X), and Neuralink. The article highlights Musk's extensive business empire but does not provide further specific details about SpaceX's operations or achievements.
SolarCity
太阳能城市
SolarCity is mentioned in the article as a solar power company where Elon Musk serves as Chairman of the Board. It is one of the many companies under Musk's business empire, alongside Tesla, SpaceX, Twitter (now X), and Neuralink. The article does not provide additional details about SolarCity's operations or its specific role beyond noting Musk's leadership position.
Twitter (now X platform)
推特(现X平台)
According to the article, Elon Musk served as CEO of Twitter (later rebranded as the X platform). He imported some of his management style from Twitter to government reforms, notably the controversial strategy of notifying employees via email to accept new working conditions or be considered resigned—a method he previously used during his acquisition of Twitter. The article highlights Musk’s preference for aggressive, high-intensity workplace environments.
Neuralink
Neuralink
Neuralink is a brain-machine interface company founded by Elon Musk. According to the article, Musk serves as Neuralink’s founder. It is listed among the several high-tech companies he leads, including Tesla, SpaceX, SolarCity, and X (formerly Twitter). Neuralink focuses on developing advanced neural interface technology to connect human brains directly with computers.
Visa
Visa
According to the article, Visa is mentioned in relation to Elon Musk’s X platform, which plans to introduce a digital wallet and peer-to-peer payment system in cooperation with Visa. This financial initiative was indirectly involved in a potential conflict of interest issue when Musk’s government reform team gained access to the U.S. Consumer Financial Protection Bureau’s internal systems, as the bureau regulates industries relevant to both X’s payments ambitions and Tesla’s auto loans.
AI generated, for reference only
What Happened When
October 2021:
Elon Musk's fortune exceeded $300 billion, making him the richest individual ever recorded by Forbes.
2024:
Elon Musk donated over $288 million to Donald Trump’s campaign via America Political Action Committee (America PAC).
January 2024:
Vivek Ramaswamy, former U.S. presidential candidate, withdrew and endorsed Donald Trump.
May 2024:
Elon Musk founded the 'America Political Action Committee' to support Trump's campaign.
October 2024:
Musk became a focal point in the U.S. presidential election because of his financial influence.
November 2024:
Trump won the presidential election; Tesla’s share price soared 15% on the day of the victory.
November 12, 2024:
Trump announced Musk and Ramaswamy would co-lead the U.S. Department of Government Efficiency.
Late November 2024:
Musk and Ramaswamy published a Wall Street Journal op-ed unveiling their reform plan for a Department of Government Efficiency.
January 8, 2025:
Musk clashed publicly with several European leaders and the European Commission within 24 hours.
January 20, 2025:
Trump was inaugurated as president; signed executive order establishing the Department of Government Efficiency, appointing Musk as head. Trump also halted all U.S. foreign aid programs.
January 22, 2025:
Trump ordered all federal employees responsible for DEI policies to go on administrative leave; DEI web pages removed.
January 24, 2025:
Secretary of State Rubio ordered a near-total shutdown of USAID; office signage removed over the following week.
By January 27, 2025:
Multiple USAID senior staff members placed on administrative leave; agency’s digital presence taken offline.
January 28, 2025:
U.S. Office of Personnel Management sent emails to 2 million full-time federal employees rolling out a buyouts plan.
February 1, 2025:
Musk's team entered USAID headquarters and obtained classified documents.
February 3, 2025:
Musk announced intentions to shut down USAID; USAID Washington HQ ceased operations.
February 13, 2025:
14 U.S. states jointly filed a lawsuit against Trump and Musk over Musk's authority. Trump ordered all federal agencies to dismiss approximately 220,000 probationary federal employees.
February 22, 2025:
Office of Personnel Management sent another mass email to federal employees regarding weekly work reports tied to voluntary resignation.
February 26, 2025:
Musk attended his first Trump administration Cabinet meeting; open conflict with Trump team began.
March 6, 2025:
Musk reportedly had a heated argument with Rubio during a Cabinet meeting about downsizing USAID.
March 20, 2025:
Trump signed an executive order initiating the closure of the Department of Education; over 1,300 employees received layoff notices.
March 26, 2025:
Trump announced a 25% tariff on all imported automobiles.
March 27, 2025:
Department of Health and Human Services announced plans to lay off 10,000 employees and reorganize its structure; Musk acknowledged slow progress on budget cuts in a Fox News interview.
March 30, 2025:
Musk attended a rally in Wisconsin for the Supreme Court race, personally handing out $1 million checks to voters.
By end of March 2025:
Musk lowered his fiscal savings target from $2 trillion to $1 trillion.
April 1, 2025:
Liberal candidate Susan Crawford won the Wisconsin Supreme Court election.
April 2, 2025:
Trump announced 'reciprocal tariffs'; U.S. stock markets suffered record declines over the next two days.
April 3, 2025:
Trump told media Musk would likely step down in a few months.
April 5, 2025:
Musk publicly criticized Peter Navarro and voiced support for free trade with Europe.
April 16, 2025:
Musk and Treasury Secretary Besant clashed over appointment of acting IRS director.
April 22, 2025:
Musk stated that from May 2025, he would cut back work at Department of Government Efficiency to focus more on Tesla.
April 23, 2025:
Axios reported that Musk and Besant nearly had a physical altercation at the White House on April 16.
April 27, 2025:
AP-NORC poll showed about two-thirds of Americans think Musk has too much power within government.
April 28, 2025:
Ipsos poll showed 57% of Americans disapprove of Musk's role in the Trump administration.
April 30, 2025:
Musk attended what was likely his final cabinet meeting; Department of Government Efficiency’s cost-cutting targets reduced to just 8% of its original goal.
By April 30, 2025:
Department of Government Efficiency’s cost-cutting goal reduced to just 8% of initial target.
May 1, 2025:
Musk publicly admitted the Department of Government Efficiency had not achieved the success he envisioned.
Early May 2025:
Trump administration unveiled budget proposal for FY2026, recommending a $163 billion cut in non-defense discretionary spending.
Mid-May 2025:
Georgia Rep. Rich McCormick stated Government Efficiency Office's operations would likely remain unchanged but lower-profile.
May 9, 2025:
Lawsuit filed with Wisconsin Supreme Court to overturn congressional district boundaries.
May 20, 2025:
Musk announced at Qatar Economic Forum he would reduce political donations in the future.
May 21, 2025:
Elon Musk made a public appearance at Trump’s meeting with South African President Ramaphosa.
May 21, 2025:
Trump's 'Beautiful Act' narrowly passed the House of Representatives.
May 24, 2025:
Musk announced on social media a return to a 24/7 work schedule, primarily focusing on his businesses.
May 27, 2025:
ACEA reported Tesla’s EU deliveries fell 53% in April 2025, fourth consecutive month of decline.
May 28, 2025:
Musk stated on social media his tenure as a special government employee was ending.
May 30, 2025:
Musk’s annual 130-day work limit as a special government employee was reached; he stepped down from public office.
End of May 2025:
White House National Security Council underwent layoffs orchestrated by Rubio, not by Musk.
AI generated, for reference only
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