WASHINGTON — Elon Musk’s ambitious political experiment with his DOGE initiative may have unraveled, leaving behind a trail of disruption and controversy that could reverberate through both Washington and Wall Street for years to come. Once hailed as a bold outsider with a mission to reform the federal government, Musk now finds himself grappling with a tarnished reputation, a dwindling fortune, and an uncertain future amid growing market instability.
Musk’s push to overhaul federal spending through DOGE — a project aimed at slashing $2 trillion from the national debt — has failed to live up to its promises. Despite ambitious goals, his controversial actions have been marked by mass layoffs, agency dismantling, and questionable financial claims. As Musk shifts focus away from DOGE, many wonder about the lasting impact of his government disruptions.
While Musk remains a figure of admiration for President Trump, his favorability has taken a significant hit. The billionaire’s involvement in the Wisconsin Supreme Court race, where he poured $25 million into supporting a GOP candidate, backfired when Democrats painted him as a corrupt oligarch seeking to dismantle critical social programs like Social Security. The election loss further amplified the public perception of Musk as a divisive figure.
Musk’s net worth has taken a hit, dropping a staggering $122 billion this year, nearly matching the inflated savings of $160 billion that DOGE claimed to have generated — a figure now under intense scrutiny. Tesla, his flagship company, has seen its profits plummet by 71%, a crisis exacerbated by boycotts and protests, including reports of firebombings. Musk’s personal and professional life now faces severe challenges, and analysts like Dan Ives of Wedbush Securities believe the damage to Musk’s brand will linger long after DOGE’s demise.
Wall Street Stumbles Amid Trade War Uncertainty
While Musk’s political ventures have caused significant turbulence, the broader economy is also feeling the effects of ongoing uncertainty tied to President Trump’s trade war. Wall Street’s recent three-day rally has lost momentum as businesses and investors face an unpredictable economic landscape, with U.S. stocks drifting in mixed trading.
The S&P 500 saw modest gains of 0.4%, but most stocks within the index experienced declines. The Dow Jones slipped 0.2%, and Intel — one of the market’s major players — reported troubling signs of “elevated uncertainty” in the tech sector, causing its stock to fall by 7%. Even companies like Eastman Chemical and Skechers have raised alarms about the macroeconomic uncertainty triggered by ongoing trade tensions. Despite reporting strong earnings, Skechers withdrew its financial forecasts for the year due to the volatility of global trade policies.
The broader market’s caution reflects concerns over Trump’s fluctuating tariffs and the supply chain disruptions that have left businesses scrambling. According to Brian Jacobsen, Chief Economist at Annex Wealth Management, the uncertainty created by the trade war is more than just a “distraction” — it poses an “existential threat” to smaller businesses that lack the resources to navigate shifting market conditions.
Big Tech’s Role in Stabilizing Markets
While much of the market is rattled, Big Tech has stepped in to offer some stability. Alphabet, the parent company of Google, posted a 50% increase in profits for the first quarter, boosting its stock by 1.9%. Similarly, chipmaker Nvidia helped push the S&P 500 upward, with its stock rising 3.7%. These gains were significant enough to offer a glimmer of hope in an otherwise uncertain market.
Despite these tech-driven positives, broader economic challenges remain. The yield on the 10-year Treasury bond fell to 4.26%, signaling investor concerns about long-term economic stability. Economic data continues to show signs of strain, with consumer sentiment plunging in April, down by 32% from January — marking the steepest drop since the 1990 recession.
Musk’s Long-Term Outlook
As Musk recedes from the public eye following his controversial tenure at DOGE, his political legacy is left hanging in the balance. Republicans who initially championed his cost-cutting efforts now face the fallout of his decision to slash programs like the IRS, which threatens to undermine any fiscal gains made by reducing government waste. Jessica Riedl, a senior fellow at the Manhattan Institute, argues that Musk’s claims about reducing the deficit were “overstated” and failed to account for the long-term consequences of weakening tax enforcement.
Even as Musk retreats from the political arena, his influence on both the federal government and the corporate sector will continue to echo. Acolytes of Musk are strategically positioned in key government roles, ensuring that his presence in American politics remains substantial for years to come. President Trump’s continued praise for Musk underscores the billionaire’s ability to shape public policy, despite the controversy that now surrounds him.