Elon Musk has announced he is leaving his role in the Trump administration after helping lead an effort to shrink the size of the federal government, which resulted in thousands of federal job cuts. Musk, the world’s richest man, thanked President Trump for the opportunity to help run the Department of Government Efficiency (Doge) in a post on his social media platform, X.
The White House began “offboarding” Musk as a special government employee on Wednesday night. His role was always temporary, limited to 130 days per year under his designation. Counting from Trump’s inauguration in January, Musk was expected to reach that limit by the end of May.
Disappointment Over Spending Bill
Musk’s departure comes shortly after he publicly expressed disappointment with Trump’s latest budget bill, which includes multi-trillion dollar tax breaks and increased defense spending. In an interview with CBS News, Musk called the bill “big, beautiful” but argued it would increase the federal deficit and undermine the work of Doge. “I think a bill can be big or it could be beautiful, but I don’t know if it could be both,” he said.
Initially, Musk had aimed to cut at least $2 trillion from the federal budget but later reduced his target to $150 billion. The Doge initiative has cut or made redundant an estimated 260,000 of the 2.3 million federal civilian workforce. Some mass layoffs were legally challenged, with courts ordering reinstatements in certain cases. Mistakes during the rapid cutbacks also led to wrongful terminations, including some at the US nuclear program.
In late April, Musk said he would step back from Doge to focus on his companies, following mounting criticism. Speaking ahead of a SpaceX launch, he said Doge had become a “whipping boy” blamed for various problems, even those unrelated to its work.
Tesla’s Struggles Amid Political Fallout
During Musk’s time with Doge, Tesla experienced its largest drop in deliveries, with sales down 13% in the first quarter of 2025. The company’s stock price fell by as much as 45%, though it has since partially recovered. Tesla warned investors that political backlash could continue to harm demand.
Musk has stated he will significantly reduce the time spent on Doge and focus more on Tesla. Meanwhile, activists have protested outside Tesla dealerships, staged boycotts, and vandalized vehicles and charging stations. The situation escalated to the point that US Attorney General Pam Bondi warned such acts would be treated as “domestic terrorism.”
Speaking at an economic forum in Qatar, Musk committed to leading Tesla for at least the next five years. He also announced plans to cut back political donations after spending nearly $300 million to support Trump’s presidential campaign and other Republican candidates in 2024.
Author’s Opinion
Elon Musk’s decision to step away from his government role underlines the challenges tech leaders face when blending corporate ambitions with political influence. While Doge aimed to streamline government spending, the backlash Musk endured illustrates how political controversies can spill over and impact business performance. This episode highlights the risks for entrepreneurs who take on political roles — no matter how well-intentioned, they can become targets for criticism that affect their core enterprises. For Musk, refocusing on Tesla seems a pragmatic choice to protect his business interests amid growing political turbulence.
Featured image credit: Gage Skidmore via Flickr
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