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Wednesday, June 4, 2025

Elon Musk Responds to White House Blowup

Elon Musk has launched a social media response following reports of his intense dispute with Treasury Secretary Scott Bessent and his reduced influence in the Trump administration. This development signifies a major increase in the tensions that have affected his four-month government role.

The CEO of Tesla faced renewed scrutiny when The Atlantic published a piece titled “The Decline and Fall of Elon Musk,” detailing his increasingly isolated position while leading the Department of Government Efficiency (DOGE). Musk countered with several posts on X, dismissing the publication as a “zombie publication” and mocking its major shareholder, Laurene Powell Jobs.

The Atlantic article began with an account of an intense confrontation in April between Musk and Bessent in the West Wing over control of the Internal Revenue Service (IRS). Multiple eyewitnesses reported that Treasury Secretary Bessent used profanities during their disagreement on IRS leadership.

Witnesses described the April 2025 incident as a significant breach of White House decorum. “It was two billionaire, middle-aged men thinking it was WWE in the hall of the West Wing,” one witness said. The argument occurred near Italian Prime Minister Giorgia Meloni, who was visiting President Donald Trump that day. An aide intervened to separate the men as their argument extended from the Oval Office through the West Wing.

The dispute focused on Musk’s appointment of Gary Shapley as acting IRS commissioner without Bessent’s consent. Shapley, a former IRS agent, was Musk’s choice, while Bessent favored his deputy, Michael Faulkender, to lead the agency under the Treasury Department’s oversight.

During the argument, Bessent criticized Musk for overpromising budget cuts through DOGE while failing to deliver. Witnesses reported that Musk accused Bessent of being a “Soros agent” and running a failed hedge fund. Bessent eventually prevailed when Trump replaced Shapley with Faulkender after three days.

The confrontation underscored broader tensions between Musk and Trump administration officials. In March, Musk faced criticism from Secretary of State Marco Rubio, Veterans Affairs Secretary Doug Collins, and Transportation Secretary Sean Duffy in another White House meeting arranged by Trump. Cabinet members were reportedly frustrated with Musk’s influence over their agencies.

Administration officials have increasingly criticized Musk’s management style and approach to government efficiency. Senior Trump officials have described Musk as abrasive, with some calling him the most irritating person they encountered in government. His Silicon Valley approach of rapid change has clashed with the slower pace of federal bureaucracy, causing friction with career officials and political appointees.

Musk’s role as a special government employee limits his service to 130 days per year. If his tenure began on Inauguration Day, January 20, his 130-day limit would end by late May. However, Musk announced during a Tesla earnings call in April that he would reduce his government involvement in May. “Probably starting next month, in May, my time allocation at DOGE will drop significantly,” Musk said. He indicated he would dedicate only one or two days per week to government matters for the remainder of Trump’s term.

During Musk’s leadership, DOGE achieved mixed results. The department terminated numerous government contracts and grants while encouraging the firing of federal employees across agencies. DOGE accessed sensitive Treasury Department payment systems containing Social Security numbers and bank account information, demonstrating unprecedented reach into government data systems.

However, DOGE has not achieved its promised budget savings or deficit reduction. Government spending increased 10 percent compared to last year, while revenue grew only 3 percent, leading to a 23 percent rise in the federal deficit by March 31. Some of Musk’s initiatives, like weekly progress reports from federal employees, have been quietly discontinued.

The tension between Musk and Bessent partly stems from their differing philosophies. Musk favors rapid change akin to his approach in acquiring Twitter in 2022, while Bessent represents a more traditional financial management style. Their relationship was strained from the outset, as Musk had advocated for Howard Lutnick for the Treasury Secretary position instead of Bessent.

President Trump has continually defended Musk’s work with DOGE despite the internal conflicts. Trump told reporters that Musk was uncovering significant fraud, corruption, and waste within the federal government. Trump has stated he would prevent Musk from engaging in government matters that could conflict with his business ventures.

Congressional Democrats have started investigations into DOGE’s access to sensitive data systems and challenged its authority to shut down federal agencies. A group of 19 Democratic state attorneys general filed a lawsuit questioning DOGE’s constitutional authority, while Senate Democrats investigated reports that the organization accessed federal student loan data without authorization.

White House Press Secretary Karoline Leavitt defended the administration’s handling of internal disagreements, stating that conflicts are a normal part of any policy process. She emphasized that all officials serve at President Trump’s pleasure, who makes final policy decisions. One unnamed Trump adviser expressed frustration with Musk’s methods. “I think everyone’s ready to move on from this part of the administration,” the adviser said.

Musk’s reduced schedule starting in May reflects both the constraints of his special government employee status and Tesla’s declining performance, prompting investor pressure for him to refocus on the electric vehicle company. His announcement came during a Tesla earnings call where the company reported disappointing sales, contributing to stock price declines affecting his personal wealth and influence.

As of May 25, 2025, Elon Musk announced a return to a “24/7” work schedule focusing on his companies, including X, Tesla, SpaceX, and xAI. Despite Musk’s reduced involvement, DOGE continues to operate within the Trump administration, with ongoing initiatives and controversies.

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