Post-DOGE, Elon Musk Faces Challenges at Tesla and SpaceX

Summary

WSJ Tech News Briefing: Post-DOGE, Elon Musk Faces Challenges at Tesla and SpaceX

Released on June 2, 2025

In this episode of the Wall Street Journal's Tech News Briefing, host Victoria Craig delves into the latest developments surrounding Elon Musk following the conclusion of his ambitious project, DOGE (Department of Government Efficiency). As Musk shifts his focus back to his core business ventures, Tesla and SpaceX, the episode explores the successes and setbacks of DOGE, the implications for Musk’s enterprises, and the broader impact on his relationship with the U.S. government.

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1. Elon Musk’s DOGE Initiative: An Ambitious Endeavor

Elon Musk's DOGE initiative aimed to implement sweeping cost-saving measures within the federal government. Initially targeting a staggering $2 trillion in savings, Musk’s approach mirrored Silicon Valley’s "move fast and break things" philosophy applied to government bureaucracy.

Notable Quote:

Elon Musk [01:27]: “This is the chainsaw for bureaucracy.”

Despite Musk's dramatic demonstrations, such as wielding a chainsaw at CPAC to symbolize his intent to cut through red tape, the results have been mixed. As of his recent report in the Oval Office, DOGE has achieved approximately $200 billion in savings, far short of the original $2 trillion goal.

Notable Quote:

Tim Higgins [02:48]: “Still far, far away from that. On Friday in the Oval Office, he says they're getting close to maybe 200 billion with a B.”

The initiative has faced significant challenges, including legal hurdles delaying widespread layoffs and controversy over the "Wall of Receipts"—a document intended to showcase the total cost savings—which has sparked debate over its transparency and effectiveness. Additionally, Musk’s close alignment with President Trump has led to backlash from customers opposed to the administration's policies, impacting his businesses adversely.

2. The Future of DOGE and Leadership Questions

As DOGE transitions away from Musk’s direct oversight, questions arise about its sustainability and future leadership. Key figures like Steve Davis are also stepping back, leaving the leadership vacuum unclear.

Notable Insight:

Tim Higgins [03:46]: “It's something we just don't really have a good grasp on at this point.”

Moreover, while DOGE highlights potential areas for government savings, significant legislative action from Congress is necessary to solidify these efforts. However, current budget proposals are increasing the U.S. deficit, potentially undermining DOGE's objectives.

3. Musk’s Shift Back to Corporate Leadership

With DOGE winding down, Elon Musk is redirecting his attention to Tesla and SpaceX, amidst ongoing projects and emerging challenges.

Notable Quote:

Victoria Craig [04:45]: “Elon Musk said that he is happy to stay on in an advisory capacity to the President.”

Despite his advisory role, Musk signals a return to his companies with intense focus. His recent activities include overseeing SpaceX's Starship launches aimed at Mars colonization and Tesla’s imminent release of robotaxis.

Notable Quote:

Becky Peterson [07:44]: “At SpaceX, we know that they are moving people off of Dragon, which is the spaceship that currently takes astronauts to the space station. They're trying to reduce the number of people who are working on these existing successful programs, which means there's more bodies on the dream programs.”

Musk’s multifaceted involvement poses the question of sustainability, especially as his time and attention are split between high-stakes projects at Tesla and SpaceX.

4. Investor Sentiment and Company Performance

Investor confidence remains a critical factor as Musk refocuses on his companies. Tesla, valued at over $1 trillion, continues to attract optimism based on Musk’s visionary leadership. However, recent sales declines in Europe and competitive pressures from Chinese automakers underscore the challenges ahead.

Notable Quote:

Tim Higgins [11:40]: “The valuation of Tesla at more than a trillion dollars... is really about the vision of the future that Elon Musk is selling.”

SpaceX faces its own set of hurdles, including the ambitious timeline for Mars missions and the transition from successful programs like Dragon to more experimental ventures. The success of these projects is pivotal for maintaining investor trust and ensuring long-term growth.

5. Balancing Political Advisory and Corporate Responsibilities

As Musk scales back his political engagements, he aims to allocate more time to his businesses without completely severing ties with the government.

Notable Quote:

Tim Higgins [09:27]: “Musk has said he's planning to scale back his involvement in politics maybe just a couple days a week.”

This balance is crucial, as excessive political involvement has previously led to customer backlash and uncertainty within his companies’ operational focus. Musk's ability to navigate this dual role will significantly impact the future trajectory of Tesla and SpaceX.

6. Conclusion: A Pivotal Moment for Musk and His Enterprises

Elon Musk stands at a crossroads, balancing his governmental ambitions with the pressing demands of his tech giants. The outcomes of this balancing act will not only determine the future success of Tesla and SpaceX but also Musk’s legacy as an innovator who seeks to reshape both industry and public policy.

Notable Insight:

Tim Higgins [13:10]: “Elon is able to use his celebrity, use his goodwill with the market to really create these kind of huge bets that might not pay off. But if they're right, it could be a big deal.”

As Musk re-engages with Tesla and SpaceX, stakeholders watch closely to see whether his visionary bets will materialize into transformative successes or present insurmountable challenges.

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Key Contributors:

• Victoria Craig – Host, Wall Street Journal
• Tim Higgins – WSJ Columnist, "100 Days of Musk" Series
• Becky Peterson – WSJ Reporter, Tesla Coverage

Produced by: Julie Chang and Deputy Editor Chris Sinceley

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Notable Advertisement Skipped: The episode included an advertisement for Deloitte’s “Techfluential” podcast and Comcast Business services, which were omitted from this summary to focus on the core content.

Transcript

[Victoria Craig]

This episode is brought to you by cla. Hey TNB listeners, before we get started, heads up. We're going to be asking you one more question at the top of each show this week. Our goal here at Tech News Briefing is to keep you updated with the latest headlines and trends on all things tech. So we want to know more about you, what you like about the show, and what more you'd like to be hearing from us. Our question this week is what other tech podcasts do you listen to? That is assuming we are not the only one. If you're listening on Spotify, look for our poll under the episode description or you can send us an email to tnbsj.com now onto the show. Welcome to Tech News briefing. It's Monday, June 2nd. I'm Victoria Craig for the Wall Street Journal. A new month and a new focus for tech billionaire elon musk. For 130 days he was locked in on his mission to dismantle bureaucracy in Washington. But today marks the of his first full week officially on the outside of the Department of Government Efficiency he created. Today we'll take a look at his Doge report card and discuss what's next as Musk brings full attention back to his bruised business empire. Over the past four months, plenty of ink has been spilled on the twists and turns of Elon Musk's slash and burn strategy at Doge.

[Elon Musk]

This is the chainsaw for bureaucracy.

[Victoria Craig]

That was him on stage at the CPAC conference back in February, literally wielding a chainsaw before a cheering audience. The thing is, many of the widespread layoffs his new department initiated are being held up by the courts. The so called Wall of Receipts that was designed to show the total cost savings achieved has been controversial. And in the process of retaining his status as first buddy to President Trump, Elon Musk's businesses have felt the brunt of the backlash from customers who who do not support the administration's vision. So today we've assembled a dynamic duo to help us dig into how successful Musk's Doge was at applying Silicon Valley's move fast and break things approach to the notoriously slower moving government. And we'll evaluate what's next for the world's richest man as he returns to corporate America. WSJ columnist Tim Higgins, who's been with us the last few months for our 100 days of Musk series, is back again alongside WSJ reporter Becky Peterson, who focuses her coverage on Tesla. Elon Musk, welcome to you both.

[Tim Higgins]

Thank you.

[Becky Peterson]

Yeah, thanks for having us.

[Tim Higgins]

So Tim, I Want to start with you, because let's do a review, a report card of sorts for Elon Musk and Doge. He initially targeted $2 trillion in cost savings for the federal government through DOGE.

2 trillion with a T?

[Victoria Craig]

Yes.

[Tim Higgins]

How close did he get to that goal?

Still far, far away from that. On Friday in the Oval Office, he says they're getting close to maybe 200 billion with a B. He's still holding out, though, for $1 trillion, possibly by next summer. He says the work of Doge will continue. He was wearing a T shirt, in fact, that called himself the Doge Father.

And a black Doge hat, too. So he came decked out. What happens next with Doge, though?

[Victoria Craig]

Because, as you say, the President said.

[Tim Higgins]

The numbers could double or triple with cost savings from Doge.

[Lou DiLorenzo]

We'll remember you as we announce billions of dollars of extra fraud and abuse. Just as an example, Doge canceled $101 million for DEI contracts at the Department of Education. 101.

[Tim Higgins]

Where could those cost savings come from? And who takes the Doge baton from here? What happens to that?

Now the President says that many of the Doge workers will remain, though we know that the engine of that effort, Elon Musk, is taking a step back. The Journal has reported that Steve Davis, a longtime lieutenant in the Elon Musk world, is also stepping back. So the question becomes who is the leader? Who is the kind of the power behind the scenes? And it's something we just don't really have a good grasp on at this point. But like Buddhism, as Musk likes to say, the Doge effort will continue. And one of the things that's really of concern is that while Doge is highlighting areas that could see savings, it seems as if Congress will really have to cement that, the President hinting that the effort will be made there. But so far, we haven't really seen that. And the budget bill that is moving way through Congress is projected to increase the US Deficit, so kind of going the opposite direction.

And Becky, I want to come to you because staying in the conversation in the Oval Office, Elon Musk said that he is happy to stay on in an advisory capacity to the President.

[Elon Musk]

I expect to remain a friend and an advisor, and certainly if there's anything the President wants me to do, I'm at the president's service.

[Victoria Craig]

You wrote a piece for the Journal.

[Tim Higgins]

That said that Elon Musk is ready.

[Victoria Craig]

To get obsessed with his companies again.

[Tim Higgins]

And that's been a real question for the last several weeks and months about how Much focus this CEO is paying to many of his companies. So what happens from the corporate side of things with Elon Musk?

[Becky Peterson]

Elon's message at the White House was so different from what we've been seeing him say in other pressers in recent days. When SpaceX did its launch on Tuesday of Starship, that test run, he was telling everyone his mind is on Mars. He's just thinking about the ceramic tiles that are on the spaceship. A few days before that, he had some press visit the Austin factory, where he was talking about how excited he is for Tesla to launch his robotaxis in Austin in June. So there's a lot going on at the companies. It does seem like he's trying to do it all. But we've seen him spend more time at Tesla and SpaceX publicly in recent weeks than we have since Trump won the election.

[Tim Higgins]

And will this focus on his companies become harder in his post Doge era? Because that's sort of been the conflict for the companies themselves, dealing with the backlash from customers who have been opposed to how involved Musk has been in the White House.

[Becky Peterson]

Elon has come in and out of his companies a lot in recent years. He's been distracted by the Twitter acquisition, so I don't think it's an issue for him to come back after being gone. The question with Tesla is whether customers are going to respond to the brand the same way that they did before, and whether he can turn around that company, improve its revenue.

[Tim Higgins]

We saw sales figures for Tesla in Europe last month. In April, they fell behind one of his Chinese rival for the first time. So what are his priorities then? Not just at Tesla, but at all of his other companies as well.

[Becky Peterson]

It's the Elon Musk story to try to develop technology that's new and cutting edge when he's at his best. And all of the companies seem to be on the precipice right now of big change, if he's to be believed. So Tesla's robo taxi ride hailing service is scheduled to be made public in June. SpaceX is trying to get the Starship rocket ready to go to the moon for NASA and to go to Mars by the end of 2026. And Xai is competing with ChatGPT, by OpenAI, Anthropic and some other brands to develop AGI. And those are all really big projects for any CEO, but he's doing all three right now.

[Victoria Craig]

Coming up, Elon Musk has made a clean break from Doge, but how will he balance a desire to remain at the president's with a need to refocus on his companies. Tim and Becky dig into those questions after the break.

[Sarah Tucker]

The board member tech relationship is about more than updates and oversight. It's about collaborating to drive business transformation. On this episode of Techfluential, Deloitte's Lou DiLorenzo talks with nationwide board members Sarah Tucker and Jim Fowler, Nationwide EVP and cto, about how this alliance can fuel strategy, unlock innovation and accelerate growth. Where technology and influence converge, new opportunities can emerge. That's techfluential, a podcast from Deloitte and custom content from WSJ.

[Victoria Craig]

In his Oval Office. Goodbye On Friday, Elon Musk was asked which is harder, slashing wasteful spending in the US Government or getting humans to Mars?

[Elon Musk]

It's a tough call, but I think colonizing Mars and making life multi planetary is harder.

[Victoria Craig]

A tough call and a tough mission, which he returns at least some of his focus to now that he's passing the Doge baton. The question many are asking is how well can he balance running his companies while staying in President Trump's orbit? We're back now with WSJ's Tim Higgins and Becky Peterson. Tim, in a recent piece of which the headline was Angry Elon is Back, you write about how he needs to go forward and focus on his company, but the question is also how does he play that sort of advisory friend role to the government in whatever capacity that might still look like?

[Tim Higgins]

Musk has said he's planning to scale back his involvement in politics maybe just a couple days a week. He's a guy who measures his workload by 60, 70, 80, 120 hours a week. But really, he seems to be signaling that he's gotten the message that it's time to focus back on his company. So whether it's Tesla or SpaceX, and that is exciting some investors, especially at Tesla, they're saying that the wartime CEO is back. He's had some public appearances where he's been pretty feisty with questions about the status of Tesla. For example, he feels the stock is the indication that the company is back on track. The stock is up since he has announced he's pulling back his duties at the White House. And it's somewhat understandable because the valuation of Tesla at more than a trillion dollars, the only automaker in the world to have such a valuation, really putting it in that elite league of publicly traded companies is really about the vision of the future that Elon Musk is selling. And that vision with Tesla is a world of robots, robots that are like Humans that can do human work or robots that drive cars. And so the idea that he's back in the trenches doing that, it gives people a lot of hope. The challenge, however, is is this the time he's really going to execute? He has been talking about driverless cars and being on the verge of being able to deploy this technology for years and years. And other companies have been able to do this. We look at Alphabet's Waymo or Amazon Zoox, and they have vehicles traveling around public roads in places like San Francisco, where I'm based, without people behind the steering wheel. Tesla has not demonstrated that ability yet, though Musk says they are doing it, but they haven't deployed it. And so this is a kind of a make or break moment. Think of it as he's betting the company yet again to show the world that he can do this and turn it into a real business. And so investors are excited about that. But there are also some investors who perhaps are saying, let's see it, we want to believe it when we see it kind of thing, because he has talked about it for so long.

[Victoria Craig]

Becky, to that point, I wonder if you have a sense of how patient investors and people who work at and with some of Elon Musk's companies will be with how long it takes to achieve some of that progress, at least in some of these companies. Because you worked on a story last month that Tesla's board had begun the search for a CEO successor to Musk. That was something that the company denied. But it does beg the question how much patience is left from not just Tesla, but Elon Musk's other companies as well.

[Becky Peterson]

Tesla's investors have already priced in all of the success, so I'm also wondering how patient they'll be. But like Tim said, they've already been waiting a really long time. The difference between now and in the past, when he said robotaxis are around the corner or Mars is around the corner at both Tesla and SpaceX, he really has bet the company Tesla doesn't have a new car in its lineup for customers to get excited about over the next few years. There's only the cybercab, which doesn't have a steering wheel or pedals. So that's a very big commitment to this vision that he has. And at SpaceX, we know that they are moving people off of Dragon, which is the spaceship that currently takes astronauts to the space station. They're trying to reduce the number of people who are working on these existing successful programs, which means there's more bodies on the dream programs. But it also means that if the dreams don't work out, there's no backup plan.

[Tim Higgins]

In a lot of ways, this is classic Elon and something that really very few people can pull off at these big kind of companies. If you're the CEO of a company like General Motors, it's very hard for you to give up an existing business line and say, I'm just going to take this wild gamble on something else, because you make all your money on pickup trucks, right? That's the business. And so what Elon is able to do is use his celebrity, use his goodwill with the market to really create these kind of huge bets that might not pay off. But if they do pay off, they literally change the world. And that is part of the excitement around these companies, too. He's not doing something easy. He maybe is doing something that is unwise. But if he's right, it could be a big deal.

[Victoria Craig]

That was WSJ reporter Becky Peterson and Journal columnist Tim Higgins. And that's it for Tech News Briefing. Today's show was produced by Julie Chang with Deputy editor Chris Sinceley. I'm Victoria Craig for the Wall Street Journal. We'll be back this afternoon with TNB Tech Minutes. Thanks for listening.

[Lou DiLorenzo]

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