Author | Special Contributor to "Finance" Jin Yan
On May 1, local time Thursday, U.S. media reported that National Security Advisor Mike Waltz is set to leave his position to become the U.S. Ambassador to the United Nations, with the vacancy to be filled by Secretary of State Rubio. Waltz's deputy, Alex Wong, will also depart; he assisted in arranging the summit between Trump and North Korean leader Kim Jong-un and is one of the few senior officials with practical diplomatic experience in East Asia. U.S. President Trump's Middle East envoy, Witkoff, is considering replacing Mike Waltz as National Security Advisor, but no decision has been made yet.
Trump's first term was characterized by frequent changes in high-level personnel, but during his second term, the first major personnel change did not occur until he had been in the White House for nearly 100 days. The National Security Council (NSC) is the core institution for U.S. presidents to formulate and coordinate security policies, and its members often make key decisions on global hotspot conflicts. Waltz is seen as a staunch supporter of traditional security alliances (such as NATO) and is one of the more moderate voices advocating for external coordination within the Trump administration. This personnel change came very suddenly; even State Department spokesperson Tammy Bruce learned of it from reporters during the briefing that day.
Meanwhile, the once-dominant global billionaire business magnate Elon Musk has quietly lost power, being pushed out of the decision-making core. On April 30, local time Wednesday, Musk claimed at a White House meeting that the government efficiency department (DOGE) he leads has saved $160 billion in spending to date. This is far from the "at least $2 trillion" he promised last fall.
Some organizations estimate that "layoffs, rehires, productivity losses, and paid leave for thousands of workers will cost over $135 billion in this fiscal year," which means the DOGE project may actually lead to an increase in net government spending.
Double Exit
Musk played a very special role in the Trump administration by supporting his election with campaign funds reaching nine figures. He frequently participated in phone consultations with foreign heads of state, hosted high-level meetings at the Pentagon and the National Security Agency, and even spoke directly with Indian Prime Minister Modi. Now, Trump's right-hand men are gradually taking shape, including trade advisor Navarro, who has become a key figure in the Trump administration, as no one dares to challenge his views directly, giving him a rare "one-man show" status; another is Treasury Secretary Mnuchin, whose influence has grown as Trump's policies have shaken the dollar's dominant position and led to a "sell America" trend. Musk has had fierce disputes with both of these White House heavyweights. Treasury Secretary Mnuchin and Musk reportedly exchanged harsh words outside the Oval Office; Musk referred to Navarro as an "idiot" on social media platform X.
U.S. media reports that a significant role in Musk's exit was played by the first female White House Chief of Staff, Wiles. She believed Musk's presence at the White House posed a threat to the collaborative spirit she wanted to establish. Her struggle significantly reduced Musk's opportunities to appear in the West Wing, ultimately leading to his fade-out.
On April 30, during a cabinet meeting at the White House, Musk wore two hats: one was a red "Make America Great Again" hat favored by Trump, and the other was a DOGE hat. Musk repeatedly switched hats during the meeting, ultimately deciding to wear both stacked together. At this moment, Musk, who wanted to juggle both political and business roles, is facing a double exit.
Musk's formal position in the cabinet will end around May 30, after which he will serve as an informal advisor. Additionally, due to the decline in Tesla's stock price and some investors' dissatisfaction with Musk's deep involvement in politics, Tesla's board has begun to seriously consider finding a successor for Musk. Although Tesla later publicly denied this, Musk has become a liability for Tesla, leading to a 9% year-on-year decline in the company's revenue for the first quarter and a 20% year-on-year drop in automotive business revenue, with net profit plummeting 71% year-on-year.
Recently, Musk told investors during Tesla's earnings call that starting in May, he would significantly reduce his work hours at DOGE to refocus on Tesla. The Tesla brand has been severely damaged due to Musk's political work and is facing performance challenges—both sales and performance are significantly declining. An anonymous employee from the government efficiency department told "Finance" that Musk had previously led a demand that government employees must work 40 hours a week in the office, or they would lose their jobs. They found that essentially ten government employees could accomplish the work of one person, and Musk chose to go to war with the large group of government employees, who vented their dissatisfaction on him.
Musk is seen as the soul of Tesla. Wedbush Securities analyst Dan Ives once said, "Tesla is Musk, and Musk is Tesla." However, Tesla is currently facing numerous difficulties, including an aging product line, intensified competition from China, and the political backlash triggered by the DOGE initiative, all of which have led to declines in both product demand and profits.
Recently, Musk's rocket and satellite company is collaborating with software manufacturer Palantir and drone manufacturer Anduril to bid for the construction of key parts of the "Golden Dome" project, which has attracted significant interest from rapidly growing defense startups in the tech industry. Reports suggest that Musk's SpaceX and its two partners are expected to win the bid for key parts of President Trump's "Golden Dome" missile defense system. However, 42 Democratic lawmakers have called for a review of Musk's role in this missile defense system bidding process.
Musk's SpaceX has attracted significant attention. SpaceX and its two partners are expected to win the bid for key parts of President Trump's "Golden Dome" missile defense system. Photo by Jin Yan
Personnel Turmoil
In March of this year, Waltz came under close scrutiny for mistakenly adding Jeffrey Goldberg of The Atlantic to a Signal chat group. Goldberg disclosed discussions between Waltz and senior national security officials regarding plans for military strikes against Houthi targets in Yemen. After Waltz privately acknowledged the authenticity of the report, White House officials debated whether he should resign, but Waltz never offered to resign, and Trump did not demand his resignation at the time. Trump publicly expressed support for Waltz, calling him "a good man" and stating that he "learned a lesson."
Waltz's departure marks the end of a month-long personnel turmoil within Trump's national security apparatus. Since April 1, the National Security Council has fired at least 20 members, leading to severe personnel shortages in several key departments. Insiders revealed that the actual number of layoffs exceeded previous reports, causing some key national security institutions to face staffing shortages.
The layoffs were prompted by conservative commentator Laura Loomer submitting a list of officials deemed "disloyal" to President Trump, resulting in about 15 people being dismissed in the first week, with the layoff process still ongoing. Media reports indicate that several important departments within the NSC are currently facing near-paralysis, including teams responsible for Latin American policy, international organization affairs, and legislative affairs.
Additionally, on April 18, the U.S. Department of Defense fired three senior officials who were accused of "unauthorized disclosure of national security information." The three officials subsequently issued a joint statement vehemently denying the allegations, accusing the Pentagon of "baseless defamation." The U.S. Department of Defense had previously launched investigations into multiple "leak incidents" to determine how sensitive information, such as the deployment of the U.S. military's second aircraft carrier to the Red Sea, military action plans against the Panama Canal, Musk's visit to the Pentagon as head of the government efficiency department, and the U.S. halting intelligence collection for Ukraine, was exposed to the media.
The U.S. Department of Defense has launched investigations into multiple "leak incidents." Photo by Jin Yan
After Trump's return to the White House, the Pentagon has already conducted a "purge" of senior officials, firing high-ranking officials such as Charles Brown, the Chairman of the Joint Chiefs of Staff appointed by the Biden administration, in February.
These purges have severely impacted the morale of certain departments within the national security apparatus. These officials also added that some government departments lack relevant national security expertise, making it difficult in some cases to attract senior talent.
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