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Musk to invest in Republican candidates for midterms

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Wisconsin election loss highlights limits of Musk's

political

influence

By Nandita Bose, Alexandra Ulmer

WASHINGTON, April 28 (Reuters) -

As billionaire Elon Musk scales back work for U.S. President

Donald Trump, he's laying the groundwork for a major role as a

Republican political megadonor in next year's midterm elections,

according to four people with direct knowledge of the matter.

After announcing last week that his cost-cutting role at the

White House was mainly done, Musk views his money and his social

media platform X as potentially more powerful political tools

than his time inside the government, when he became the face of

Trump's shake up of the federal bureaucracy, one of the people

said.

The people said they expect Musk, the world's richest

person, to remain influential with Trump as a political adviser

while investing in Republican candidates in next year's

midterms.

"How Elon exits matters," said a second person with direct

knowledge of the discussions. "The priority is keeping him close

- without turning a major ally into a liability heading into

2026."

After overseeing job cuts at nearly every federal agency

while leading the Department of Government Efficiency, Musk told

investors last week that he would reduce his time with DOGE to a

day or two a week from May. As a special government employee, he

can only serve for 130 days, a period that will expire at the

end of May.

"I think he's exhausted and exasperated, especially with the

attacks on his companies," said a third person who has knowledge

of Musk's efforts at DOGE. By "stepping back, you make yourself

less of a target."

Musk did not respond to requests for comment for this story.

White House spokesman Harrison Fields declined to comment on

Musk's political plans.

Tesla has faced a troubling few months. The once-leading

electric vehicle brand has been tarnished by protests against

Musk's far-right politics. Tesla vehicles have been vandalized.

Deliveries of its aging vehicle lineup have nosedived. And its

stock price has tumbled, prompting some investors to publicly

urge Musk to exit politics.

Public disapproval of Musk, a former Democrat, has surged.

Some 58% of respondents in a Reuters/Ipsos poll conducted this

month had an unfavorable opinion of Musk. In 2022, his

disapproval ratings hovered in the mid-30s, opinion polls

showed.

As Trump approaches 100 days in office, Musk's time in the

White House has been marked by the pursuit of one of the most

substantial transformations of the federal workforce in decades

- as well as by persistent questions about conflicts of interest

and lack of transparency. Many of his companies had dealings

with agencies and government departments targeted by DOGE.

The White House has said Musk's business interests do not

conflict with his role at DOGE. Musk told reporters in February

that he was fighting waste, had zero conflicts and was

"maximally transparent."

After Trump's inauguration, Musk quickly emerged as a

powerful force in the White House: hyper-visible,

unapologetically brash and unfettered by traditional norms. At

the Conservative Political Action Conference in February, he

brandished a red metallic chainsaw to wild cheers. "This is the

chainsaw for bureaucracy," he declared.

He set an ambitious target of cutting $2 trillion in federal

spending.

A DOGE website that gives regular updates on what it claims

it has saved U.S. taxpayers - $160 billion to date - has been

riddled with errors and corrections

.

Some cabinet members who initially welcomed Musk's outsider

energy

grew wary

of his tactics, four of the people said. Over time, they

grew more confident

pushing back

against his job cuts, encouraged by Trump's reminder in

early March that staffing decisions rested with department

secretaries, not with Musk, three of the people said.

That didn't stop the infighting. Musk clashed with three of

Trump's most senior cabinet members - Secretary of State Marco

Rubio, Transportation Secretary Sean Duffy and Treasury

Secretary Scott Bessent. Bessent was dropped from Musk's follow

list on his social media site X, which some commentators saw as

a sign of his frustration with him. Musk called Trump's trade

adviser Peter Navarro a "moron" and "dumber than a sack of

bricks." Navarro dismissed the insults, saying,

''I've been called worse."

A spokesperson for Duffy referred Reuters to the secretary's

remarks on March 24 when he dismissed reports of tension with

Musk and said "we're working well together." A senior State

Department official said there is "no daylight" between Rubio

and Musk.

Fields said disagreements between Bessent and Musk "are a

healthy part of the policy process" and "ridiculous palace

intrigue stories from the media mean nothing and do not reflect

the administration's record of success." Navarro did not respond

to requests for comment.

Trump often praised Musk's boldness. Still, the White

House's Office of Legislative Affairs, which serves as a liaison

between the White House and Congress, received frequent calls

from Republican lawmakers expressing anger over Musk's cuts to

federal programs and the political fallout in their districts,

two of the people said. At Republican town hall meetings,

voters vented

their anger at Musk and DOGE.

As a public backlash against Musk grew and waves of protests

targeted its showrooms in the U.S. and Europe, Musk asked Trump

to intervene and help his reeling EV business with a public

demonstration of support for the Tesla brand, three of the

people said.

The discussion took place between Musk and Trump over the

weekend of March 8-9 when they traveled together to Mar-a-Lago.

Musk also lobbied top aides and Republican lawmakers to publicly

express support for Tesla, the three people said. One of the

people described it as a "coordinated effort to boost Tesla's

public image."

A few days later, on the afternoon of March 11, in an

extraordinary scene, Trump showcased a cherry-red Tesla on the

South Lawn. Seated in the car, he praised the company as a

symbol of American innovation, called the Model S Tesla

"beautiful" and said he'd buy it for White House staff use.

Fox News host and Trump ally Sean Hannity announced on X

that evening, "I just ordered my new self-driving Tesla!"

Republican Senator Ted Cruz posted a photo on X of himself

posing with Trump's newly purchased Tesla. "This may be the

coolest thing I've ever seen," he wrote in the March 14 post.

On March 19, Commerce Secretary Howard Lutnick went on Fox

News and urged viewers to buy Tesla stock, a possible violation

of federal ethics rules that bar officials from endorsing

specific companies, according to ethics experts. The White House

said that no ethics rules were violated.

White House's Fields said "any assertion Elon Musk appealed

to President Trump for help is categorically false and never

happened." Trump has told reporters that Musk never asked him

for a favor or any assistance related to his business interests.

Musk has also stated publicly he never asked Trump for any

favors.

Tesla, Lutnick, Cruz and Hannity did not respond to requests

for comment.

WISCONSIN ELECTION - A TURNING POINT

Then came the recent Wisconsin Supreme Court race, one of

the most expensive judicial contests in U.S. history. After Musk

made himself the face of the Republican campaign to end the

court's liberal majority, the high-profile April 1 election

exposed the limits of his political influence and the risks of

trying to buy sway in a battleground state.

Claiming "the course of Western civilization" was on the

line, Musk handed out $1 million checks to two voters and

campaigned in the state. He and political groups linked to him

spent about $21 million to support conservative judge Brad

Schimel for a seat on the court.

Liberal Susan Crawford won by a

decisive 10 points

.

Many Democrats cast the race as a referendum on Musk.

By then, Musk had stoked Democratic anger on multiple fronts

- from his prominent role in slashing the civil service and his

criticisms of Social Security to a hand gesture that resembled a

Nazi salute

during Trump's inauguration. The election highlighted how

Musk's involvement in a competitive race could backfire by

mobilizing Democrats more than Republicans. Musk dismissed

criticism of the hand gesture as a "tired" attack.

Strategists in both parties saw his money as both a benefit

and a liability for Republicans. Some said it may have prevented

an even bigger win by Crawford. But it also fueled Democratic

criticism that Trump is empowering an "oligarch" class of

ultra-wealthy allies, a narrative they are expected to press

with voters in the midterms.

In 2024, Musk was the largest election-cycle donor,

contributing more than $250 million to boost Trump and other

Republicans.

Up until Wisconsin, Musk had operated with near-total

autonomy in the White House, driving DOGE initiatives largely on

his own terms, two of the people said. Following the defeat in

Wisconsin, he seemed to take on a lower political profile,

posting more about space and electric cars than politics on X.

"If I were the Republicans, I would hope he puts money into

races but stays out of the limelight," Brandon Scholz, a former

executive director of the Wisconsin Republican Party who is now

an independent, said of next year's midterms.

(Alexandra Ulmer reported from San Francisco. Additional

reporting by Jack Queen in New York and Jason Lange in

Washington. Editing by Colleen Jenkins and Jason Szep)