T&M expires, Musk goes back to day job

Elon Musk is back to his day job helming his tech empire, after a longish stint as Trump's axeman for government spending. The world's richest person lost no time in criticising Trump's big tax break bill - 'This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination' - that seems set for approval by US lawmakers with some tweaks. He also said that it would add to the US budget deficit and saddle Americans with 'crushing' debt. Tesla sales have fallen during Musk's absence. Now, Trump's tax bill proposes to trim subsidies for EVs. Chinese EV-makers have made the tech commercially viable and are capturing Tesla's overseas markets with inexpensive models. Tesla's stock has taken a knock, and Musk now plans to speed up plans to make smarter and less expensive cars. That could be a problem thanks to Trump-tariffs and Chinese advancements in AI.

Musk's businesses have an unusually close relationship with the US government, which should have benefited him. But that didn't happen. SpaceX persists with its redoubtable record of launch failures, while Starlink is facing competition from its European rival. The Trump admin is betting big on OpenAI, a competitor to Musk's xAI that bought X while he was in Washington. Musk has no tangible benefits to show for his time in Washington except his comfort level with bringing kids at work and 45° salutes. It works both ways. The federal government doesn't seem to have benefited from Musk's attempts to cut flab either. The spending reductions achieved were a fraction of those promised before the government machinery pushed back over fears of coming unstuck.

Trump and Musk are putting a brave face on their brief tango. But the effects haven't been good on business or government. Unlike lateral-entry business leaders who work within a structured government role, Musk's relationship was way more experimental. Maybe a pair of personalities less mercurial than T&M could have made it work. For now, this will remain an audacious piece of government reengineering.