Elon Musk to reduce his political donations
What's the story
Billionaire entrepreneur Elon Musk has announced that he will be cutting down on his political donations. This is a major departure from his previous position as one of the top financial backers of Donald Trump's US presidential campaign. Speaking at an economic conference in Qatar, Musk said that he will be doing "a lot less" spending in the future. He also pledged to lead electric car company Tesla for another five years.
Political shift
Musk's past political contributions
Musk, who invested almost $300 million in total political spending, including support for Trump's campaign and other GOP candidates, said that he felt he had "done enough" in terms of political spending. He clarified that if a reason arises for future political spending, he would consider it. But as of now, he doesn't see such a need. This decision comes after his recent step back from leading DOGE (Department of Government Efficiency), an initiative aimed at reducing federal spending.
Business scrutiny
Political involvement and its impact on his businesses
Until last year, Musk had mostly stayed away from the political limelight. His massive financial backing of Trump attracted attention toward his companies, including SpaceX and X. Questions over conflicts of interest emerged as he became a key player in Trump's White House. This was because some of his companies had contracts with the federal government while others were being probed by it.
Influence decline
Political influence wanes amid controversies
Musk drew backlash for axing thousands of federal jobs and giving his DOGE team access to government data. As Tesla's sales plummeted, the board and investors were worried that he wasn't paying enough attention to the company that made him a billionaire. Earlier this year, a Musk-backed candidate for the Wisconsin Supreme Court lost despite receiving over $20 million from him and affiliated groups.
Defense
Musk defends DOGE's performance
Despite the controversies, Musk defended DOGE's performance at the conference, saying it has little power over spending. He described DOGE as just an adviser in this context and claimed they are doing very well. He also disputed reports by the UN and others that job cuts have severely affected people supported by US-backed initiatives.
Future plans
Musk's commitment to Tesla
Musk reiterated his commitment to Tesla, dismissing suggestions that his decision was influenced by pay. He is pushing for a record-breaking compensation package which was stopped by a judge in Delaware. "It's not a money thing," Musk clarified. "It's a reasonable control thing." This came after he was asked if his continued leadership at Tesla depended on the size of his pay package.