[By Guancha Observer, Shao Yun]

Donald Trump's close ally and the de facto leader of the "Department of Government Efficiency" (DOGE), American billionaire Elon Musk, recently stated that he would refocus on Tesla. What kind of storm will this cause in Trump's inner circle? On April 23, Reuters cited two "government insiders directly familiar with the matter" as saying that members of Trump's cabinet were preparing to reclaim control and decision-making power over budget cuts.

The report pointed out that Musk provided political cover for the White House's sweeping layoffs and budget cuts, but this move also sparked dissatisfaction among many cabinet members - they believed that DOGE had overstepped its bounds, interfering with their personnel decisions.

Reuters cited sources as saying that tensions within the Trump administration have intensified in recent weeks. At a cabinet meeting in March, Secretary of State Rubio criticized Musk for weakening the role and status of USAID, while Transportation Secretary Sean Duffy clashed with Musk over the issue of cutting air traffic controllers.

The New York Times reported on March 10 that during a cabinet meeting, Rubio, Duffy, and Musk had a heated argument. Musk questioned Rubio's efforts to downsize the State Department, accusing him of failing to fire anyone. Rubio rebutted by saying that at least 1500 State Department employees had accepted voluntary buyouts, and asked Musk if he wanted the department to rehire these people "just to pretend to fire them again."

Duffy questioned Musk as to why, while dealing with multiple aircraft accidents, DOGE was demanding the dismissal of air traffic controllers. In January, an American passenger plane collided with a military aircraft during landing at an airport, resulting in no survivors, drawing public attention to Washington's congested airspace. Reports suggest that many air traffic controllers were forced to work overtime, posing risks to air traffic operations.

On February 26, 2025, in Washington D.C., Musk spoke at Trump's first cabinet meeting of his second term, wearing a shirt reading "Technical Support." Visual China

As internal leadership shifts occur, the young team initially recruited by Musk will also be reassessed in terms of responsibilities and roles. Politico reported on the 23rd that Musk's role at the White House and in cabinet meetings was described as "both a sword and a shield," not only being very firm against opposition voices but also particularly defending DOGE members. Sources said that after Musk "steps back," the qualifications and authorities of these young people will be questioned, facing more scrutiny, and ultimately their influence is likely to be weakened.

Politico also disclosed that due to Musk's friendship with Trump, initially, many in the White House dared not directly voice opinions to Musk. "How do you tell a world's richest man to stop and follow the rules?" But the report said that recently, Musk's influence has begun to wane because the White House insisted on coordinating all parties, "slowing down" Musk's pace. Sources said this also made Musk, who was accustomed to having full authority in his own companies, increasingly tired of Washington's regulations.

There are signs that Musk is beginning to face pressure from other cabinet members. For example, last week, Treasury Secretary Besant fired Gavin Kliger, who was responsible for IRS affairs within DOGE, appointing Deputy Treasury Secretary Michael Folkenhead as the acting director of the IRS, thereby "regaining" control of the Treasury Department from Musk. The bi-weekly IRS layoff notices originally scheduled to be released last week have yet to be issued.

However, some analysts believe that even if Musk reduces his involvement with DOGE, it is unlikely to significantly change the way DOGE operates or reverse its layoff plans, as some allies close to Musk and sharing similar ideas remain in DOGE's team. Additionally, the agenda to cut federal spending enjoys Trump's support, who has already signed an executive order for it. Musk and Trump's personal friendship remains "very strong," with Musk visiting Washington at least once a week.

"The train has left the station, it's hard to stop," Nick Bednar, a law professor at the University of Minnesota Law School who has been tracking U.S. government layoffs, said.

Reuters reported that on April 23, White House spokesperson Harrison Fields responded, stating that Musk's reduced participation does not mean a shift in direction or influence for DOGE. "DOGE was designed such that cabinet members already have autonomous authority over budget cuts, and DOGE is just one component of the institution, so there will be no changes." He added that DOGE is, to some extent, "almost on autopilot."

On April 22, Tesla released its first-quarter financial results for this year, reporting net income of $409 million, a 71% decrease year-over-year. Its revenue and profits fell short of expectations, with total revenue declining 9% year-over-year, and automotive business declining 20%. Tesla mentioned in the report that changing trade policies, as well as "changing political sentiment," could have a significant impact on product demand in the short term.

At the earnings call on the same day, Musk said, "Starting next month, in May, I will significantly reduce my time allocated to DOGE." According to Musk, he will continue to "spend one or two days per week" handling Washington affairs, which may continue until the end of Trump's presidential term. However, he emphasized on social media that this does not mean he is abandoning the position, but rather "reducing time allocation."

On the first day of Trump's second term, he signed an executive order establishing DOGE, aiming to maximize the efficiency of running the federal government through the modernization of software and technology. The White House identified Musk's status as a "special government employee" (SGE). According to relevant U.S. regulations, SGEs are limited to working no more than 130 days per year. If calculated from January 20 when Trump was sworn in, Musk's term was originally expected to end around the end of May, but now it will almost certainly be later.

This article is an exclusive contribution by Guancha Observer and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7496763112864104995/

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