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Elon Musk Faces Business Challenges as He Leaves Washington

Levi Farrer by Levi Farrer
May 30, 2025
in Economics
Elon Musk Faces Business Challenges as He Leaves Washington

After his brief Washington stint as President Donald Trump’s chief cost-cutter Elon Musk has returned to the business world. The executive faces multiple challenges at his various business ventures as he steps down from his position.

The electric vehicle company Tesla under his leadership faces significant pressure because its first quarter profits decreased by 71% in 2025. The company faces declining sales because of Chinese automaker competition and negative public perception of Musk’s political views. Tesla’s image improvement among liberal consumers following Musk’s government exit remains uncertain because the company faces challenges from its outdated product lineup and rising market competition.

X formerly Twitter under Musk’s ownership continues to face difficulties in rebuilding its advertising customer base because of his political views that drove away mainstream brands. The aerospace firm SpaceX continues to lead the market for reusable rockets but faces ongoing challenges despite this success.

The satellite internet business Starlink operated by Musk faces uncertain times during its efforts to establish new international partnerships. The absence of Trump’s direct support makes analysts predict that international contract acquisition will become more challenging for the company.

The sudden departure of Musk from government service without any official ceremony has Washington insiders wondering about his future plans. During his time in Trump’s administration Musk’s unconventional leadership approach generated significant attention but his upcoming decisions will attract intense scrutiny from investors and policymakers.

Tags: Elon Musk
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