Musk faces political backlash as Tesla winds down Cybertruck production

Elon Musk is confronting a convergence of political setbacks and operational changes following the midterm elections. He spent $500 million on the election cycle with no apparent return on investment, a move that has contributed to a perceived decline in his political power. A New York Times article described this period as the beginning of the end of Musk’s political influence, noting that he has lost between $80 billion and $90 billion in value. Texas Governor Gina Hinojosa has signaled a shift in the state’s relationship with Musk, stating that he can work with the state but only on their terms. She specifically asked him to hold off on a possible sale of a state park to SpaceX.

Operationally, Tesla is winding down Cybertruck production in Texas around the middle of next year. The company is making room for the CyberCab robo-taxi, a move driven by falling Cybertruck sales since launch. Meanwhile, questions have arisen regarding government payments to SpaceX. The White House stated that SpaceX donated Starlink service, but records show the Pentagon paid SpaceX nearly $1.2 million for Starlink work at the White House since last year. Incoming Democratic investigators are expected to probe these financial and political ties, adding to the pressure on Musk’s business interests.