Elon Musk has officially stepped down from his role in the Trump administration, concluding a tumultuous tenure as the head of the Department of Government Efficiency (DOGE). His departure, announced on May 28, 2025, follows mounting criticism over his aggressive cost-cutting measures and a recent federal spending bill that he claims undermines DOGE’s mission.
Musk was appointed as a special government employee, limited to 130 days of service per year, to lead DOGE—a Trump-era initiative aimed at streamlining federal operations and reducing government expenditure. Initially, Musk set an ambitious goal of cutting $2 trillion from the federal budget, but this target was later revised down to $150 billion by 2026. Despite claims of achieving $55 billion in savings, subsequent audits revealed that $9.3 billion of these savings were from canceled contracts that had already been fulfilled, casting doubt on the effectiveness of DOGE’s measures. Departure Amid Fiscal Disagreements The immediate catalyst for Musk’s resignation was his disapproval of a substantial new spending bill introduced by President Trump.
Musk criticized the legislation for increasing the federal deficit, stating that it contradicted the cost-cutting principles he was advocating for within DOGE. In a statement, Musk expressed gratitude to President Trump for the opportunity but emphasized that the new fiscal policies made his position untenable.
Impact on Musk’s Business Ventures Musk’s involvement in the Trump administration had repercussions beyond politics. Tesla experienced a 71% drop in profits and declining sales during his tenure with DOGE, as investors and consumers reacted negatively to his political engagement. SpaceX also faced challenges, including failed launches, which some analysts attributed to Musk’s divided focus. These developments led Musk to acknowledge that his political involvement may have adversely affected his businesses.
Refocusing on Innovation Following his departure from the administration, Musk announced plans to concentrate on his core companies—Tesla, SpaceX, X (formerly Twitter), and his AI startup xAI. He aims to reinvigorate investor confidence by emphasizing innovation and technological advancement. Musk has also indicated a desire to distance himself from political activities, suggesting that he may have spent too much time on political endeavors at the expense of his business interests.
While Musk has stepped away from his official role in the Trump administration, the long-term impact of his tenure at DOGE remains to be seen. The department’s initiatives have sparked debates about the role of private sector leaders in government and the effectiveness of aggressive cost-cutting measures. As Musk returns his focus to the private sector, observers will be watching to see how he navigates the challenges ahead and whether his companies can recover from the recent setbacks.