President Donald Trump was reportedly surprised and angry upon learning that Elon Musk was set to receive a briefing on classified war plans with China at the Pentagon last month, according to a Wall Street Journal report.
The Journal reported that Trump was “unhappy” to find out that Musk was to receive the briefing and “frustrated” by the lack of prior notification, especially given Musk’s substantial business dealings in China.
News of the planned briefing emerged shortly before Musk’s meeting with Defense Secretary Pete Hegseth, leading to criticism from the president’s adversaries who pointed out Musk’s business operations in China as a conflict of interest. These issues ultimately influenced the nature of the discussions between Musk and Pentagon officials.
Although the meeting still covered China-related topics, it did not include any classified information, according to reports from the BBC and Musk himself. The Pentagon visit marked an unusual level of access for the tech billionaire, whose companies have significant federal defense contracts.
While Trump publicly dismissed the initial New York Times report as “fake news” and claimed that there was never a plan to brief Musk on a China war plan, sources indicate he was privately upset by the unanticipated news. This denial came despite reports from Reuters that a U.S. official confirmed the briefing would include an overview on various topics, including China.
Musk, who reportedly requested the briefing, dismissed the reports as “pure propaganda,” but also threatened “prosecution” against those leaking information to the press. The tech entrepreneur has enjoyed significant access within the Trump administration, raising concerns about the overlap between his advisory role and his business interests.
Defense Secretary Pete Hegseth sought to clarify the meeting’s purpose, stating it would focus on “innovation, efficiencies & smarter production” instead of classified war plans. A Pentagon spokesperson later called the New York Times report “egregious” and “fake.”
The relationship between Trump and Musk has been under scrutiny since the president appointed the billionaire to lead the Department of Government Efficiency (DOGE), tasking him with reducing federal spending waste. Musk’s approach to this role, which includes proposals to cut federal jobs, has reportedly caused tension within the White House.
According to multiple sources, Trump has informed his Cabinet that Musk will step down from his position at DOGE within the next few weeks. The world’s richest man is expected to maintain an informal advisory role while shifting attention back to his businesses, including Tesla, X, and SpaceX.
The controversy over Musk’s Pentagon visit comes as his political activities appear to be affecting his business interests. Tesla’s stock price has dropped nearly 50% since December 2024.
Musk has acknowledged that his DOGE role has been “a very expensive job” for Tesla, as it has led to protests from voters against DOGE’s activities. The backlash has impacted the stock market, with Tesla’s European sales dropping by 45% in January 2025.
The company is under pressure from former owners selling their vehicles due to Musk’s political activities. Tesla’s first-quarter 2025 deliveries are projected to be 7% lower than the previous year, with analysts citing “anti-Musk and brand issues” as significant factors in the decline.
This situation highlights the challenges faced by business leaders in public political roles. As Musk balances his presidential advisory role with his responsibilities as CEO of major corporations, potential conflicts of interest and business repercussions continue to grow.