Elon Musk's Return: Can He Revive His Empire After a Political Detour?

Introduction:

Elon Musk, the tech mogul known for his ambitious ventures and innovative ideas, has recently resurfaced at the helm of his companies after months of political involvement. Serving as the head of the Department of Government Efficiency (DOGE) under President Donald Trump, Musk’s absence from his companies like Tesla, SpaceX, and Twitter (now X) led to growing concerns. Despite being the face of futuristic innovation, his political entanglement and the damage to his ventures left many wondering if it’s too late for Musk to reclaim his former influence. Now back in his factories and data centers, wearing his iconic “Occupy Mars” T-shirt, Musk faces a challenging road ahead. Will he manage to repair the damage caused by his absence? Let’s explore the situation in depth.

Musk’s Dual Identity: Business Titan and Political Power Player

Once regarded as a visionary entrepreneur, Elon Musk shifted focus to politics, aligning himself closely with President Trump. His role in the administration included advocating for significant budget cuts and regulatory rollbacks, particularly those impacting green energy and electric vehicles (EVs). These controversial moves, while in line with Trump’s agenda, caused a rift with Musk’s core supporters in the EV industry, leading to a loss of confidence from business partners and investors alike.

Tesla Faces a Steep Decline: Sales Plunge and Backlash

During Musk’s political phase, Tesla endured a major setback. With government subsidies for electric vehicles under threat and tariffs imposed on imported materials, Tesla’s stock value plummeted by nearly 14%, resulting in the loss of \$180 billion in market capitalization. This financial blow was accompanied by protests at Tesla dealerships, where employees and customers voiced their discontent. The company’s once-robust morale suffered as Musk’s absence in the business operations became increasingly evident.

SpaceX Struggles in Musk’s Absence: A Leadership Void

SpaceX, Musk’s flagship aerospace company, faced its own challenges while he was absent. Employees reported a decline in morale, with some even publicly calling for his return, citing the motivational boost that Musk’s direct presence had once provided. Although SpaceX successfully launched two Starship test flights during his time away, the lack of Musk’s leadership left a void in the company’s day-to-day operations. The once-dynamic culture of SpaceX now appeared to be lacking the spark that Musk himself had instilled.

Musk’s Distant Involvement with Tesla Operations

Reports suggest that Musk’s involvement in Tesla had become increasingly sparse. On one occasion, he made a brief visit to Tesla’s Palo Alto office days before an earnings call, primarily to discuss Trump’s tariffs—despite the fact that the policies had already been announced months earlier. Inside sources indicated that Musk’s attention to Tesla operations was waning, with some meetings attended via phone or, at times, completely missed. This left many wondering whether his leadership style had evolved, or if it was simply a sign of his diminishing engagement.

xAI and AI as Musk’s Singular Focus

While his other companies floundered, Musk remained deeply involved in his AI venture, xAI. The company, which developed the chatbot Grok, became the primary focus of his attention during his political stint. Musk frequently promoted Grok on X (formerly Twitter), building a public narrative around its potential. In March 2025, he merged xAI with X, creating a mega-tech entity valued at \$113 billion, according to internal documents related to an upcoming tender offer. Musk’s focus on AI seemed to be the one consistent element in his professional life, despite the turbulence surrounding his other ventures.

Telegram Partnership Sparks Confusion

In a recent development, Musk and Telegram’s founder Pavel Durov teased a partnership that would bring Grok to Telegram’s massive user base. However, shortly after the announcement, Musk contradicted the statement, claiming that “no deal has been signed.” This inconsistency raised questions about internal misalignment and whether Musk’s leadership, despite his return, was as cohesive as it once was. The power struggle behind the scenes seemed to point to the reality that Musk remains in control, but communication within his empire is often unclear.

Leadership Vacuum: Workers and Investors Demand More Than Symbolism

As Musk returned to SpaceX’s control room and shared photos of himself sleeping on factory floors, employees and investors began to demand more than symbolic gestures. While Musk’s presence was appreciated, there was growing frustration about the need for hands-on leadership. Workers wanted Musk to lead strategy, revive morale, and guide the companies through the complex economic challenges ahead. The calls for real leadership indicated that Musk’s return was seen less as a photo op and more as a crucial step to restore the companies to their former glory.

What Undercode Say:

Elon Musk’s return to the leadership of his companies is undoubtedly a significant moment, but the challenges ahead are enormous. Undercode suggests that the companies Musk once pioneered now face a tough battle for survival, largely because of the damage done during his political detour. Musk’s focus on government policy and his detachment from Tesla and SpaceX during pivotal moments have left deep scars. While his decision to prioritize xAI and artificial intelligence is understandable given the industry’s future importance, it may not be enough to reverse the losses in his more established ventures.

Tesla’s troubles are especially dire, as the EV market continues to evolve rapidly, with competition from other manufacturers increasing and government support waning. SpaceX, too, faces an uncertain future without Musk’s constant leadership presence, which had been critical in driving innovation. Moreover, Musk’s controversial actions and inconsistent messaging have led to confusion and frustration both internally and externally.

Investors and workers alike are asking for more. They want Musk to return to his roots, focusing on product development, market leadership, and long-term strategy. While his AI ventures may be profitable, they are unlikely to be a panacea for the issues plaguing Tesla and SpaceX.

Fact Checker Results ✅

Tesla’s Stock Decline: Musk’s absence led to a noticeable dip in Tesla’s stock value, contributing to a loss of \$180 billion in market capitalization, which aligns with reports from financial analysts. ✅
SpaceX Employee Sentiment: Employees voiced dissatisfaction during Musk’s absence, with reports citing a drop in morale. This is consistent with statements from former workers. ✅
AI Focus: Musk’s commitment to xAI and the Grok chatbot is well-documented, with significant attention on the merger with X. ✅

Prediction 📈

Looking forward, Musk’s return could lead to a slow recovery for his companies if he successfully re-engages with Tesla and SpaceX. However, his increasing focus on AI and other digital ventures suggests that he may pivot towards AI-driven businesses more than ever before. The real question is whether this shift will leave his original ventures in the dust, unable to recover from their years of neglect.