Musk says ties to Trump administration are hurting his companies
What's the story
Elon Musk, the CEO of Tesla and SpaceX, has revealed that his work with the Trump Administration is hurting his companies.
In a recent interview with Fox News's Bret Baier, Musk said that "my companies are suffering because I'm in the government."
The statement comes amid a string of troubles for Tesla, including falling stock prices due to disappointing global sales figures.
Conflict of interest
Musk's dual role sparks controversy
Musk's dual role as a business mogul and a government advisor has led to discussions of possible conflicts of interest.
After Donald Trump's electoral victory, Musk was appointed a special government employee. His main focus has been on cutting down federal spending.
Although the White House clarified Musk isn't leading the Department of Government Efficiency (DOGE) office responsible for these efforts, he has often been called its de facto leader.
Business impact
Tesla faces several challenges amid Musk's government role
Tesla has been marred by protests, vandalism incidents, and attacks on its showrooms and vehicles lately.
The issues have raised concerns among investors that Musk's government role may be damaging the company's brand.
The CEO himself admitted earlier this month that he was overseeing his companies with "great difficulty."
In a surprise all-hands Tesla meeting on March 20, he urged stakeholders to "hang on to your stock."
Future prospects
Trump's 2nd term could benefit Musk's business empire
Musk's business empire has been propped up by billions of dollars worth of government contracts or subsidies. These contracts are likely to continue during Trump's second term.
The DOGE office under the White House has either moved to defang or completely shut down government agencies that were previously investigating Musk's companies.
Earlier this month, Trump praised Tesla models at a media event on South Lawn of the White House, supporting Musk's ventures in his second term.