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The Elon Musk Blow-back

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The Elon Musk Blow-back

Author: Greg Valliere

February 24, 2025

PERHAPS THE CHAIN SAW was a bit too much. Elon Musk’s stunt with the saw appealed to the activist GOP base, but helped to drive Musk’s job approval rating down to the low 30 percent zone.

MORE IMPORTANTLY, it prompted some of President Trump’s new cabinet appointees to push back on Musk.

THE DEFECTIONS ARE NOTEABLE: Director of National Intelligence Tulsi Gabbard instructed personnel in U.S. spy agencies not to respond to Musk, according to the text of an email she sent to the workforce on Sunday, citing the agencies’ sensitive and classified work.

DEFENSE DEPARTMENT employees were given similar instructions to not respond, as were FBI personnel and Department of Homeland Security employees.

THIS LATEST MUSK INITIATIVE ORDERED all federal employees to explain what they did in the past week, in bullet points. Labor attorneys immediately responded that Musk lacks the authority to do this.

WE THINK THE FEDERAL GOVERNMENT IS BLOATED, and we agree that there’s still fat to trim. But the wave of firings has been harsh and chaotic, and polls show the public is uneasy about layoffs and a softening economy.

THIS IS CRUCIAL FOR TRUMP, because he needs to hang on to his political capital as a fierce budget fight looms next month, with a growing likelihood of a government shutdown…

TRUMP IS A MASTER at reading the polls, but he was simply wrong on Saturday when he said his polls are rising. They have clearly fallen in the past two weeks.

TRUMP EVENETUALLY WILL REALIZE the country likes incremental change, not mass layoffs. In another week or two his polls could be even lower, and he will need a scapegoat. He has one — Musk, who already is an albatross among Republicans in Congress, many of whom were aghast at the chain saw stunt.


The views expressed in this blog are those of the author and do not necessarily represent the opinions of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies.

The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.

AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). AGFA and AGFUS are registered advisors in the U.S. AGFI is a registered as a portfolio manager across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.

About AGF Management Limited

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. Our companies deliver excellence in investing in the public and private markets through three business lines: AGF Investments, AGF Capital Partners and AGF Private Wealth.

AGF brings a disciplined approach, focused on incorporating sound, responsible and sustainable corporate practices. The firm’s collective investment expertise, driven by its fundamental, quantitative and private investing capabilities, extends globally to a wide range of clients, from financial advisors and their clients to high-net worth and institutional investors including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.

Headquartered in Toronto, Canada, AGF has investment operations and client servicing teams on the ground in North America and Europe. AGF serves more than 800,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.

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©2025 AGF Management Limited. All rights reserved.

Written by

Greg Valliere

Greg Valliere

Chief U.S. Policy Strategist

AGF Investments

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