It appears that multi-billionaire and current ESG-basher Elon Musk has worn out his welcome in the Oval Office amidst rumors that he plans to step down from the Department of Government Efficiency (DOGE) at the end of May.
Musk has been under intense pressure to refocus his attention on his struggling Tesla brand. His slash-and-burn approach to government cost-cutting also means he needs to repair his tarnished public image. And, he’s becoming a political liability to Trump.
Will he redeem himself by finally coming to his senses and reversing course, to again become a champion of the very thing underpinning his Tesla brand: climate action?
It’s certainly possible. Here’s why:
Headline Risk.
Protecting the climate is good for business. And Musk is first and foremost a businessman. But since joining the Trump administration, his public image has suffered tremendously and gets worse by the day. The resulting damage to Tesla’s brand has devastated sales worldwide along with its bottom line. Tesla shares declined for seven straight weeks after Musk arrived in Washington, the carmaker’s longest losing streak since going public 15 years ago. A columnist for Yahoo! Finance calls the situation a “public relations meltdown.”
“Tesla’s symbolic value as a luxury brand has shifted in mere months from a brand that stands for sustainability and conscientious consumption to a virtual MAGA hat on wheels,” according to Forbes.
Villain or Visionary?
Politics aside, Musk and DOGE are addressing an issue that has been weighing on the U.S. economy for far too long. When national debt numbers were last reported by the Treasury Department in October of 2024, the U.S. owed $36 trillion. That’s 123% of our Gross Domestic Product (GDP), up from just 62% two decades ago. The cost of servicing the federal debt in 2025 is estimated at over $478 billion.
By the end of May, Musk claims that DOGE will have trimmed the federal debt by $1 trillion. And while Musk’s approach to cutting the budget is surgery with an axe rather than a scalpel, in some respects, the mission aligns well with a core principle of ESG, specifically incorporating long-range implications on society when making strategic decisions. If we confront the debt issue now, rather than just kicking it to the next quarter, it won’t be handed down to the generations that follow.
Stealing Trump’s Thunder.
Musk has been handed so much power that the term “President Musk” was trending on Google in the early days of his role in the current administration. Trump has publicly shrugged it off. But there are reports his private reactions are less favorable. Trump obsesses over his public persona and delights in the spotlight. Musk shares these characteristics, and when two such superegos collide, the relationship eventually turns sour and a breakup is inevitable.
It’s clear the knives are out for Musk. There are reports of Cabinet member conflicts, and some of Trump’s most vocal cheerleaders are expressing their displeasure, including former Trump campaign manager Steve Bannon, who reportedly called Musk a “parasitic illegal immigrant.” Recently Peter Navarro, Trump’s top trade adviser, called Musk a “car assembler” and even Fox has reported that most Americans don’t like Musk.
The hugely unpopular DOGE cuts and Musk’s unsuccessful attempt to influence the recent Wisconsin election have diminished his political fortunes among GOP operatives. Musk’s views on the Trump tariffs haven’t helped his White House standing where everyone is scrambling to manage the economic blowback. While Trump will try not to offend this extremely wealthy patron, he’ll undoubtedly rid himself eventually of this lightening rod political distraction.
Legal Risk.
Some say MAGA stands for Making Attorneys Get Attorneys because many of Trump’s lawyer friends have found themselves in legal trouble themselves. Rudy Giuliani has narrowly avoided prison several times, and at least four other lawyers associated with Trump have pled guilty to a variety of offenses since 2018 (Michael Cohen, Sidney Powell, Kenneth Chesebro and Jenna Ellis).
While Musk isn’t a lawyer, he certainly has some on his payroll. And his lawyers are undoubtedly warning him of the potential legal risks that seem to come with a Trump alliance. Potential allegations could easily include conflicts of interest between Musk’s government work and his business interests that would constitute “criminal corruption.”
In his role with DOGE, Musk has managed to fire a considerable number of critics from within government agencies. But a federal judge can only be removed by being impeached by the House of Representatives and convicted by the U.S. Senate—an extremely unlikely event made even more so if the Democrats regain congressional power. And as Trump found out in New York, state courts are not subject to the whims of a Republican Congress but are fertile ground for ambitious attorney generals.
Felony convictions will certainly decimate Musk’s business interests. And even all the money in the world may not be able to keep him out of jail.
Is Redemption Possible?
At one time, Musk was a climate champion. In 2016 he called for a “popular uprising” against the fossil fuel industry, saying the world was “unavoidably headed toward some level of harm, and the sooner we can take action, the less harm will result.”
Although Tesla is under considerable financial pressure, it remains the most successful electric vehicle company in the world, created in response to consumer demand for climate-friendly transportation. But now, his quest for short-term financial success has overshadowed his understanding that climate change poses real, long-term financial risks for Tesla and his other businesses. Deep down, he understands that embracing climate action is part of his fiduciary responsibility to shareholders. And to the world.
If Musk is as wise as he contends, after relinquishing his role at DOGE, he’ll need to do considerable soul-searching. If he’s serious about the future of his businesses and desires to recover his reputation as a business visionary, he’ll return to his roots as a climate advocate. It shouldn’t be a difficult journey, for the foundation remains intact. By becoming a voice for sustainability, his businesses and popularity will return to prosperity. After all, “the most celebrated are the rehabilitated.”
For more insights and guidance on navigating the evolving landscape of climate action, sustainable investing and other related issues, stay tuned to our blog for future updates and expert analyses.
And help us build a more sustainable and prosperous world through responsible investment practices by becoming a member of the Advance ESG community.
It’s free to join and there are no future financial obligations. Together, we can make a difference in safeguarding our planet for future generations.
