Republican Party mega-donor Musk to cut political spending — for now

Doha — Elon Musk, who spent nearly $300m to support Donald Trump’s presidential campaign and other Republicans last year, said on Tuesday he plans to cut his political spending significantly in the future.

“In terms of political spending, I’m going to do a lot less in the future,” Musk said at an economic forum in Qatar. “I think I’ve done enough.”

Musk also said he was committed to staying on as Tesla’s CEO for another five years, aiming to address concerns about balancing his role at the automaker with his involvement in the Trump administration, where he has been overseeing a huge cost-cutting effort across the federal bureaucracy.

If Musk, the world’s richest person, follows through on his plan to scale back political spending, it could cost Trump and the Republican Party their biggest donor.

The billionaire did not fully close the door to spending on politics down the road, however.

“If I see a reason to do political spending in the future, I will do it,” Musk said.

His main political spending group, America PAC, declined to comment.

Last year, Musk funnelled hundreds of millions of dollars into Republican-aligned super PACs, funding battleground operations and media campaigns that helped amplify Trump’s message.

He also spent more than $20m this spring to back the conservative candidate in a Wisconsin Supreme Court race, helping to turn it into the most expensive judicial contest in US history.

But his money failed to tip the scales, as the liberal candidate won handily in an election seen as an early referendum on Trump’s second term.

Musk’s retreat threatens to strip Republicans of not just a major donor but also the infrastructure and reach his money made possible. The party may have to lean more on traditional mega-donors and ramp up grassroots fundraising ahead of next year’s congressional elections.

After Trump’s inauguration in January, Musk quickly emerged as a powerful force in the White House: hyper-visible, unapologetically brash and unfettered by traditional norms.

He led the so-called department of government efficiency, which oversaw the effort to eliminate thousands of jobs and cancel billions of dollars in contracts and grants, including the vast majority of US foreign aid, in an often-chaotic manner.

But his political views have triggered waves of protests against Tesla in the US and Europe, leading to a slump in sales at the automaker. Some investors have also been concerned about the lack of time he has been spending at Tesla.

Looking to ease some of those worries, Musk told investors last month he would reduce his time with Doge to a day or two a week from May.

Partisan support

Public views on Musk in the US are sharply divided along partisan lines, with most Republicans saying they have a favourable view of the tech mogul and an overwhelming share of Democrats saying the opposite, according to Reuters/Ipsos polls.

Overall, 58% of respondents in a poll conducted May 12-13 said they had an unfavourable view of Musk, compared to 39% who had a favourable view of him.

A person with knowledge of Musk’s efforts in the Trump administration described him to Reuters in April as “exhausted and exasperated”, especially by the blowback against his companies.

On Tuesday, Musk said having “reasonable control” of Tesla was the most important factor in staying on as CEO.

He said last year he was uncomfortable growing Tesla as an AI and robotics leader without having 25% voting control at the firm.

The billionaire kicked off his appeal to try to restore his record $56bn pay package in March, claiming a lower court judge made multiple legal errors in rescinding the compensation.

Tesla shares had briefly risen 3.3% on the comments but later pared gains to trade up about 1%. The stock is down about 20% this year since Trump’s inauguration on January 20, after initially surging on optimism that the administration would clear the regulatory path to deploying robotaxis, which Musk has pegged as the main driver of Tesla’s market value.

Earlier this month, Tesla chair Robyn Denholm denied a Wall Street Journal report that said board members had reached out to several executive search firms to find a replacement for Musk.

Musk said at the event Tesla had already turned around sales, and demand was strong in regions apart from Europe, where the company has faced protests over his political views and endorsement of Trump.

Reuters