Tesla Plunge Prompts Musk to Leave Baegakwan...Drifting Away from Trump? [AK Radio]

Musk's Early Resignation Rumors from the Office of Management and Budget Spread
Opposes Tariff War... "A Free Trade Zone Is Needed"

The rift between President Donald Trump and Tesla CEO Elon Musk is deepening. News has emerged that Elon Musk, a close aide to President Trump and head of the Office of Management and Budget, may soon leave the government. This was directly mentioned by President Trump himself during a press conference on the 4th, when he stated, "There will come a time when Musk will leave. It will probably be in a few months," fueling speculation about Musk’s early resignation.

What is particularly noteworthy is that Musk, while attending an event of the Italian far-right party 'Lega' via video conference, advocated for "creating a free trade zone with no tariffs between Europe and the United States," directly criticizing President Trump’s tariff policies. Until now, President Trump and Elon Musk maintained a close relationship often described as a 'bromance,' making this fracture even more unusual.

Legally, Musk can remain in public office without an extension of his term under the Trump administration only until the end of next month. Currently, Musk holds a special government official status, allowing him to work in the government for about 130 days a year, with this period expiring at the end of May. Given his close ties with President Trump, many expected an extension before the term expired, but it is reported that Musk himself finds it difficult to continue in government due to managing his businesses such as Tesla.

The deterioration of their relationship appears to stem from multiple factors. Since March, President Trump reportedly instructed the White House Chief of Staff to "manage Musk." Musk’s unilateral actions in carrying out large-scale restructuring as head of the Office of Management and Budget, frequent clashes with various department ministers and administrative officials, have been pointed out as problematic. Additionally, Musk’s disclosure of issues still under discussion within the Trump administration on his social media accounts has caused dissatisfaction among White House and government officials due to information leaks.

Reuters Yonhap News

On the other hand, from Musk’s perspective, he is reportedly dissatisfied with being treated as a 'traitor' in the U.S. and Europe following President Trump’s tariff war. Musk insists that although he never supported the idea of the tariff war, he has been unfairly stigmatized as a symbolic figure of the Trump administration.

Especially, the damage to Tesla caused by the tariff war is significant. Tesla’s stock price has dropped by more than 40%, and sales have continuously declined due to intensified boycotts. Tesla’s vehicle delivery performance in the first quarter of this year decreased by over 13% compared to the same period last year, marking the lowest since 2022. In China, anti-American sentiment has caused sales to plummet, with most of the Chinese market being taken over by the competitor BYD. Last year, BYD became the first electric vehicle company to surpass $100 billion in sales, while Tesla’s sales were $97.7 billion, losing the top spot.

The situation worsened as the Chinese government imposed retaliatory tariffs in response to the U.S.’s reciprocal tariff measures. Tesla imports most of its electric vehicle battery raw materials from China, placing it in a double bind of bearing both U.S. reciprocal tariffs and Chinese retaliatory tariffs during production and sales.

Meanwhile, large-scale protests against President Trump’s tariff war have erupted within the U.S., and public sentiment is worsening amid signs of inflation intensification. Nevertheless, President Trump remains firm in his stance to continue the reciprocal tariff policy.

However, experts analyze that President Trump is unlikely to prolong this policy. The U.S. Department of Commerce announced that immediately after the reciprocal tariff measures were announced, negotiation requests came from 50 countries, and it plans to adjust tariff issues through negotiations with various countries. Additionally, with the midterm elections for all seats in the U.S. House of Representatives scheduled for November next year, concerns have been raised even within the Republican Party that if the tariff war continues into early next year, public sentiment in the U.S. could deteriorate.

Ultimately, it is expected that President Trump will likely use the reciprocal tariff policy as a bargaining lever to encourage other countries to take actions desired by the U.S., rather than pushing the policy to the very end. The current conflict between Elon Musk and President Trump may also partially influence the policy direction of the Trump administration, and attention is focused on Musk’s future moves and changes in the Trump administration’s tariff policies.