Elon Musk Steps Down from DOGE Role, Cites Political Distraction and Bureaucratic Challenges
Elon Musk has officially announced his resignation as the head of the White House’s Department of Government Efficiency (DOGE), a role he held as a Special Government Employee with a 130-day limit, set to expire on May 30. In a May 29 post on X (formerly Twitter), Musk thanked President Donald Trump for the opportunity, stating, “It was an uphill battle trying to reduce wasteful spending.”
As my scheduled time as a Special Government Employee comes to an end, I would like to thank President @realDonaldTrump for the opportunity to reduce wasteful spending.
The @DOGE mission will only strengthen over time as it becomes a way of life throughout the government.
— Elon Musk (@elonmusk) May 29, 2025
A Short-Lived Political Role
Appointed in January under the Trump administration, Musk was tasked with slashing federal government inefficiencies. However, in interviews with The Washington Post and CBS, he admitted the challenge was far greater than anticipated.
“The federal bureaucracy situation is much worse than I expected,” Musk said. “It’s been an uphill battle to improve things in D.C.”
Musk also voiced his opposition to the recent multi-trillion-dollar tax relief package approved by House Republicans on May 22, criticizing it for potentially undermining the cost-cutting efforts led by DOGE.
DOGE’s Disputed Savings
DOGE claims to have saved U.S. taxpayers $175 billion since January, though multiple media outlets and analysts have challenged the accuracy of those figures. The savings amount to just 8.5% of Musk’s original $2 trillion cost-cutting goal, which he later revised to $150 billion. Reuters reports that DOGE oversaw layoffs, buyouts, and early retirements that trimmed about 12% (260,000 workers) from the 2.3 million-strong federal workforce.
Despite criticism, Musk wrote that the initiative would continue:
“DOGE’s mission will only strengthen over time as it becomes a way of life throughout the government.”
Legal and Public Scrutiny
Musk’s tenure is under legal fire. A lawsuit filed by 14 states alleges that Musk and DOGE illegally influenced federal operations, including unauthorized access to data systems, firing civil servants, and canceling contracts. A federal judge recently allowed the case to proceed.
“Too Much Time on Politics”
In a May 28 interview with Ars Technica, Musk acknowledged that his political engagements may have been excessive:
“I probably did spend a bit too much time on politics. It was a bit overrepresented by media, though. I’ve scaled that back significantly.”
The statement comes amid growing concern that Musk’s political activity has distracted from his primary role as CEO of Tesla. His time commitment to DOGE was one of several reasons analysts cited for Tesla’s 80% drop in net income in Q1 2025.
Nevertheless, when Musk said in Tesla’s earnings report that he would reduce his time spent on DOGE, Tesla shares jumped over 5% in after-hours trading.
Tesla’s Bitcoin Holdings Remain Intact
As of March 31, Tesla still held 11,509 BTC, worth around $1.24 billion at current prices.
Big Tech Faces Broader Decline
Despite internal challenges, Tesla’s 5.9% year-to-date stock decline aligns with trends among major tech firms like Apple, Nvidia, Amazon, and Google, which have also struggled in 2025.
With Musk stepping back from his Washington duties, investors and analysts will be watching closely to see whether his renewed focus on Tesla and SpaceX can help stabilize performance and public sentiment around his companies.
