The Stalling Moment of "Iron Man" Musk

Key points:

During the Trump administration in the United States, Elon Musk intervened in national governance in the form of the "DOGE" department. He once reached the peak of power but was ultimately completely excluded from the political circle due to inappropriate remarks, which affected business contracts and public trust.

The U.S. government terminated the electric vehicle subsidy and carbon credit system, causing Tesla's profits to plummet. Coupled with the immaturity of the Robotaxi project technology, both its stock price and sales volume declined.

The launch effect of the Robotaxi project has been questioned, and it has encountered restrictions from local governments in many places. Musk's image as a "pioneer of autonomous driving" has also been affected.

The successive failures of the Starship, NASA's suspension of cooperation, and the deterioration of relations with the government have shaken SpaceX's business prospects and its foundation of dependence on the government.

The extreme content output by Grok has triggered regulatory investigations. Issues such as biases in training data, financial losses, and the loss of senior executives have erupted intensively, leading to questions about the valuation bubble of xAI.

Due to his personal remarks, political stance, and strategic differences, Musk has become the root cause of multiple companies falling into crisis simultaneously. The question of "who can check and balance Musk" has become a real challenge.

On July 21st, foreign media recently reported that Elon Musk, the legendary entrepreneur once regarded as the "real - life Iron Man" globally, is currently in the most turbulent period of his career.

From a tech pioneer in Silicon Valley to a business tycoon controlling empires in the automotive, aerospace, and artificial intelligence industries, and then to a "super - advisor" in the White House trying to reshape the U.S. political landscape, Musk has single - handedly disrupted the rules of multiple industries. However, now his business empire is on the verge of collapse under the impact of political storms, technological bottlenecks, and personal controversies. Public trust has rapidly collapsed, and he himself is struggling between the fanaticism of idealism and the loss of control in reality.

From the brief glory in the White House to the fierce struggles on the X platform, from the disillusionment of the unmanned taxi project to the setbacks in the Mars dream, and then to the ethical storm in artificial intelligence, every decision of Musk has planted hidden dangers for his empire. As an investor sighed: "Musk is still a genius, but his role as a helmsman is making these giant ships deviate from the course."

01 From the Peak in the White House to Political Decline: Musk's Power Adventure

In the aftermath of the 2024 U.S. presidential election, Musk entered the core stage of U.S. politics in a nearly dramatic way. As the actual helmsman of the "Department of Government Efficiency" (DOGE) he established, Musk proposed to reshape the national machinery with Tesla - style lean management. This bold idea was strongly supported by the newly elected President Trump, allowing Musk to frequently visit the Oval Office in the White House, seemingly becoming an unofficial "super - advisor." Trump even publicly called him "the smartest person in the country," pushing him to the peak of power.

The original intention of establishing DOGE was to inject corporate logic into government operations. Musk promoted a series of radical reforms: cutting administrative budgets, optimizing the processes of federal agencies, and introducing algorithm - driven resource allocation.

These measures improved the efficiency of some departments in the short term. For example, the expenditure compression plan of the Treasury Department saved hundreds of millions of dollars. However, the side effects of the reform quickly emerged. The U.S. civil service group launched large - scale protests, criticizing that DOGE threatened the public service system; data security experts warned that the citizen data Musk requested to access might trigger a privacy crisis.

Musk was not limited to technical policies. He tried to introduce SpaceX's business model into the defense field, advocating integrating Starlink into the U.S. military communication network, and publicly declaring several times: "The country needs to be managed like a company, and policies should be determined by code rather than politicians." Although this technology - first argument catered to some liberal voters, it made the traditional establishment in Washington extremely uncomfortable.

In the spring of 2025, DOGE was officially included in the White House budget system, further expanding Musk's influence, covering energy strategy, education investment, and even homeland security. This unprecedented power of a non - government person in the administrative field made analysts exclaim that this was the "Musk moment" in U.S. political history.

A recent photo of Musk with a bruise on his eye

However, this power carnival soon collapsed. On May 30, 2025, Musk appeared at a White House farewell ceremony, and the bruise on the corner of his eye sparked media discussions. He casually explained it as a "naughty punch" from his five - year - old son, trying to use humor to dispel speculation. But a few days later, he suddenly posted a series of explosive posts on the X platform, accusing Trump of "covering up the Epstein scandal" and even calling on Vice - President JD Vance to impeach the president. This unexpected betrayal shocked the political circle. The White House quickly distanced itself from him, and senior Republicans publicly criticized his "irresponsibility." Although Musk deleted the relevant posts and apologized for his "inappropriate remarks," the rift in trust could not be repaired.

This political storm quickly spread to the business field. The Department of Defense suspended the review of key contracts with SpaceX, and NASA froze the cooperation on the lunar landing project. The policy dividends once tailored for Musk evaporated overnight. A former White House advisor sharply commented: "He dreamed of becoming the prime minister of a technological empire but mistook himself for the protagonist of a conspiracy drama. Musk has never really understood the red lines in politics."

Musk's political journey ended in failure. He tried to impose business logic on national governance through DOGE but ignored the complexity of politics and the essence of power checks and balances. This high - profile adventure not only exposed his strategic shortsightedness but also planted the seeds of turmoil for his business empire.

02 The Cost of the Political - Business Game: Financial Cracks in Musk's Empire

There is a slogan on Musk's hat saying: Trump was right about everything in the past

Musk's wealth empire is built on the equity of companies such as Tesla, SpaceX, and xAI. According to the Bloomberg Billionaires Index, as of July 2025, his net worth was approximately $360 billion. However, this wealth edifice, which highly depends on market confidence, government support, and investor enthusiasm, has an extremely fragile foundation. After the 2024 election, Musk's public confrontation with Trump made these pillars shaky, revealing the fatal weakness of his business empire in the intersection of politics and business.

At the beginning of 2025, the new tax law promoted by Trump canceled the $7,500 tax credit for U.S. - made electric vehicles and terminated the fine system for traditional fuel - powered car companies that failed to meet emission standards and had to pay to new - energy car companies. These two policies directly hit Tesla's financial lifeline. In the past, Tesla made nearly $3 billion in profit each year by selling "carbon credits." The disappearance of this income source is expected to reduce its annual profit by nearly half. Analysts at JPMorgan Chase warned that Tesla's cash flow is facing "unprecedented pressure."

The market reaction was equally ruthless. Since November 2024, Tesla's stock price has fallen by more than 30% in total, and its market value has evaporated by hundreds of billions of dollars from its peak. Investors began to question Musk's strategic judgment. Some institutions sold their shares, and some Tesla owners even put stickers on their cars saying "I bought my Tesla before Musk went crazy" to express their disappointment with him. In the first quarter of 2025, Tesla's global delivery volume decreased by 13% year - on - year, becoming the first consecutive annual sales decline in the company's history.

Musk's political adventure directly led to these consequences. Initially, he obtained a large number of policy dividends for Tesla, SpaceX, and xAI through his alliance with Trump. For example, SpaceX received more launch permits, there were continuous Starlink contracts, and xAI also completed financing with government support. However, when he publicly attacked Trump, accusing him of covering up scandals and threatening impeachment, Trump quickly counterattacked, threatening to cancel SpaceX's federal contracts and promoting policies to weaken Tesla's financial advantages. Trump coldly responded at a press conference on July 1st: "He is angry because he lost the subsidies, but he may lose far more than that."

Behind this political - business game is the double - edged sword of Musk's personal behavior. He tried to use political influence to pave the way for business but crossed the line due to a lack of political wisdom. In May 2025, his intense remarks on the X platform not only alienated the Trump administration but also made investors and consumers doubt his stability. A long - term Republican insider anonymously said: "Musk's behavior has created an unpredictable regulatory environment, and his companies are paying the price for it."

Musk tried to calm the storm by deleting posts and apologizing, but the effect was minimal. He sarcastically said at a press conference: "DOGE has become a monster that devours me." However, this self - inflicted crisis is far from over. The decline of Tesla's stock price, the contract risks of SpaceX, and the financial pressure on xAI indicate that Musk's empire is in unprecedented turmoil due to his impulsive decisions. Although his wealth and influence are still huge, the power boomerang has hit himself.

03 Tesla's Dilemma: The Illusion and Reality of the Unmanned Taxi Project

Tesla's Robotaxi project was once the most dazzling part of the "future blueprint" Musk painted for the company. Since 2015, Musk has repeatedly promised a breakthrough in fully autonomous driving technology, claiming that Tesla would have driverless vehicles on the road within three years.

However, after ten years, this vision still remains at the "concept verification" stage. On June 22, 2025, at a press conference in Austin, Texas, Musk highly announced the first batch of Robotaxis officially debuted, trying to revive the market's confidence in Tesla. However, this highly anticipated "new era of travel" quickly turned into a double crisis of technology and trust.

The press conference in Austin attracted many tech influencers and investors. Musk positioned it as a "historic moment to change the way humans travel." However, the actual experience far did not meet the expectations. The first batch of Robotaxis consisted of only 10 to 20 modified Model Ys, and each vehicle was equipped with a safety officer sitting in the front - passenger seat, ready to take over control at any time. In addition, Tesla admitted that these vehicles still relied on remote - monitoring operators to ensure driving safety. This so - called "driverless" was actually more like a "semi - automated" experiment, in sharp contrast to the commercial operation without safety officers achieved by competitors such as Waymo in multiple cities.

YouTube anchor Herbert Ong, who participated in the test ride, recorded disappointing details in his live - stream: the vehicle had multiple delays in navigation, drove into the wrong place, and he even had to chase the vehicle on foot. During the 12 - minute test ride, the system failed to accurately identify roadblocks, resulting in an emergency brake failure and another near - miss of deviating from the lane due to navigation deviation. A video quickly circulated on social media, showing a passenger in the car shouting in panic: "Stop! Stop now!" The video had more than 10 million views within 48 hours, becoming a public symbol of Tesla's technical defects.

The failure of Robotaxi not only stems from the immaturity of technology but also from the constraints of the policy and legal environment. Musk originally planned to launch the Robotaxi service simultaneously in San Francisco, Phoenix, and Austin, but local governments collectively rejected the large - scale deployment application on the grounds of traffic regulations, insurance liability, and user safety. Only the suburbs of Austin, Texas, were allowed to conduct limited tests. Even so, local regulatory agencies still required each vehicle to be equipped with a safety officer and to report in detail on each abnormal event. This is far from Musk's vision of "fully driverless."

Technically, Tesla's Full Self - Driving (FSD) system has exposed many problems in complex urban environments. FSD relies on cameras and neural networks rather than lidar, which performs poorly in low - light, bad weather, or congested traffic conditions. In contrast, competitors such as Waymo and Cruise have significantly improved the system's robustness through multi - sensor fusion technology. Missy Cummings, the director of the Autonomous Vehicle Research Center at George Mason University, said bluntly: "Tesla's FSD is far behind in L5 - level autonomous driving. The so - called 'driverless' is more of a marketing gimmick than a technological reality."

What's more worrying is the Trump administration's hostile attitude towards autonomous driving technology. At the beginning of 2025, Trump gave a speech at the Detroit Economic Club, publicly opposing autonomous vehicles on public roads, claiming that "these machines will take away drivers' jobs and threaten road safety." The newly passed tax law canceled R & D subsidies and tax incentives related to autonomous driving, further squeezing Tesla's financial space. JPMorgan Chase analysts estimated that this policy alone could reduce Tesla's annual R & D budget by more than 20%, directly affecting the development progress of Robotaxi.

The failure of Robotaxi not only shook investors' confidence but also further alienated Tesla's core consumer group. Tesla once attracted a large number of loyal users with its image of being an "environmental pioneer" and "tech - forward," but Musk's political stance and extreme remarks in recent years have made many environmentalists and liberal consumers shy away. In the spring of 2025, the footfall in Tesla stores decreased by 25% year - on - year, and the inventory of unsold vehicles piled up. Some users even put stickers on the rear of their cars saying "I bought my Tesla before Musk went crazy" to express their dissatisfaction with the brand's founder.