Elon Musk's Mr. Fix-It Takes Center Stage During a Really Bad Week -- WSJ

Dow Jones
04-05

By Tim Higgins

Elon Musk doesn't share the spotlight with many people. Donald Trump is one. Antonio Gracias is another.

Gracias, whom you probably haven't heard of, was center stage in Wisconsin with the Tesla and SpaceX chief executive this past week -- a really bad stretch that involved a stunning series of blows for Musk in his business and political lives. That Gracias was called up from the shadows underscores just how rocky things have become for Musk, even if Trump is so far standing by him.

History has shown that when Musk is fighting his toughest battles, Gracias is often his Mr. Fix-It. Together they have helped reshape industries -- autos and aerospace -- but now face an even bigger, and politically fraught, test in trying to redefine the U.S. government itself.

Until recently, Gracias rarely made high-profile public appearances. He has preferred something akin to anonymity for the past two decades as he not only invested in, but also personally helped Musk build, his business empire.

That relationship has helped make both men very rich. But it is more than just money. "I have worked closely with Elon for over 20 years," Gracias posted on X earlier this year amid one of the many tempests that Musk has found himself in since arriving in Washington, D.C., to lead DOGE.

"His heart is pure, and his sole mission is to help humanity," Gracias continued. "During the darkest moments, he has shown me the path to choose courage and compassion over fear and hate. To believe anything else is absurd."

The fervor around Musk reached new levels this past week. In a short span, Tesla reported first-quarter vehicle deliveries on Wednesday that failed to meet Wall Street expectations. They fell 13% from a year earlier.

The electric-car company's worst quarterly results in recent years come as a byproduct of both Musk's politics turning off potential buyers and a stale lineup that has failed to remain competitive with rivals, especially those in China.

That same day, Musk was being blamed for a political loss Tuesday in Wisconsin, the first big test of his ability to influence elections after helping get President Trump re-elected in November.

Musk's roughly $25 million effort to sway the Wisconsin Supreme Court election failed to move the needle.

Even before the bad week, Musk had been trying to change the narrative, appearing on Fox News along with some DOGE staff -- reminiscent of 2023 when he put Tesla executives before investors to assuage worries he was distracted by his purchase of Twitter-turned-X.

Still, a Wall Street Journal survey released Friday paints a rather bleak picture of Musk's public standing, showing his unfavorable rating widened to 53% from 45% in a similar poll in October when respondents then were split on him. His handling of the DOGE -- the Department of Government Efficiency -- also raised concerns among those surveyed.

Musk's swift and dramatic cutting of government jobs, cheered on by some Republican supporters, has added to a sense of uncertainty around the overall economy. DOGE-related layoffs have affected 280,000 workers, according to tracking by outplacement firm Challenger, Gray & Christmas.

It is increasingly looking as though his sojourn with DOGE is coming to an end when his 130-day appointment as a special government employee runs its course. "I think he's amazing but I also think he's got a big company to run," Trump told reporters recently. "At some point he's going to be going back."

Musk has said something similar. On stage this past week in Green Bay, Wis., ahead of the state election, he reiterated the strain that government service has had on him and Tesla -- its stock has dropped around 40% this year.

"What they're trying to do is put massive pressure on me -- and Tesla, I guess ... to stop doing this," Musk told the crowd of supporters he was hoping would turn out and vote.

The world's richest man had been warned that the Washington swamp can be an unforgiving place even as he talked about working 120-hour weeks on a mission to reduce government spending by $1 trillion.

During a February interview with Sean Hannity, the Fox News anchor shared the old axiom: "In D.C., if you want a friend, get a dog."

At the time, Musk laughed it off. "I do have a dog," he replied, "but I also have friends." His dog, Floki, hadn't joined him in Washington, but Gracias has.

Gracias has volunteered to drill into Social Security records, looking for supposed fraud and abuse. Such an assignment is tantamount to being asked to touch the third-rail of Washington politics.

It isn't the first time Musk has tapped Gracias to wade into a complicated and risky situation.

As an investor in Tesla, Gracias was asked in the early years to help Musk get a handle on out-of-control costs for the company's first car. "I don't think we would have made it without his help," Musk said during a speech at the Economic Club of Chicago in 2012.

Later, Gracias helped design an early sales process at Tesla that favored deploying salespeople to test-drives at festivals and events rather than building expensive stores. As the company grew, Gracias and his team from Valor Equity Partners worked to untangle problems, including those with the Model 3 sedans, which almost bankrupted the company in 2018.

He also tried to protect Musk from his own worst enemy: himself.

Walter Isaacson wrote in his biography of Musk that Gracias once locked away his friend's smartphone in a hotel safe so he couldn't post on social media during one of his infamous middle-of--the-night tweet storms.

Gracias is one of the few people in Musk's life who has such influence. It might come from his discretion. Much of what is known about their relationship comes from lawsuits in which details of their vacations and friendship have emerged. Gracias had served on the Tesla board and remains on the SpaceX board.

He went on to help Musk when he took control of Twitter. Then came Musk's foray into politics and DOGE.

In Wisconsin, Musk called on Gracias to detail some of his findings on Social Security. He remained on stage with Musk as they fielded questions and compliments from supporters.

Both men stood together, bowing their heads when a pastor in the crowd led a prayer asking God to protect Musk. "That was beautiful," Musk said. "I think we're going to need divine protection, frankly."

Gracias agreed.

Write to Tim Higgins at tim.higgins@wsj.com

 

(END) Dow Jones Newswires

April 05, 2025 05:30 ET (09:30 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

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