Elon Musk has officially stepped down from his short-lived role as head of the U.S. government’s cost-cutting initiative DOGE, citing overwhelming bureaucracy and political distractions.
Musk Bows Out of DOGE With Harsh Words for Washington
Elon Musk confirmed on May 29 that he is leaving the Department of Government Efficiency (DOGE), a White House initiative focused on reducing federal spending. The Tesla and SpaceX CEO thanked President Donald Trump on X (formerly Twitter), saying, “Appreciate the opportunity to reduce wasteful spending.”
Musk’s temporary government role, categorized under the Special Government Employee status, was legally capped at 130 days and was due to end on May 30. A White House official told Reuters that Musk’s off-boarding began that evening.
‘Uphill Battle’ Against Federal Bureaucracy
In a May 27 interview with The Washington Post, Musk said that navigating the federal bureaucracy was “much worse” than expected, adding that reform efforts in Washington were “an uphill battle.”
Musk was also critical of the House-approved multi-trillion-dollar tax break package passed on May 22. Speaking to CBS, he warned that it would worsen the federal budget deficit and undermine DOGE’s work.
DOGE’s Savings Numbers Disputed
The DOGE program, named after the popular Dogecoin cryptocurrency, claimed to have saved $175 billion since Trump returned to office on January 20. However, multiple media outlets have challenged the accuracy of those savings, calling the data exaggerated and error-ridden.
Musk originally aimed to cut $2 trillion from the federal budget but later revised that goal to $150 billion. According to Reuters, DOGE has reduced the federal workforce by nearly 12%, eliminating about 260,000 jobs through layoffs, buyouts, and early retirements.
Despite stepping down, Musk posted that DOGE’s mission would “only strengthen over time” and continue promoting fiscal discipline across government operations.
Musk and DOGE Face Legal Trouble
Musk’s departure comes as a federal judge allowed a lawsuit against him and the DOGE initiative to proceed. Filed by 14 U.S. states, the lawsuit accuses them of illegally influencing government operations, accessing federal data systems without proper clearance, and unlawfully terminating contracts and employees.
‘Too Much Time in Politics,’ Musk Admits
In a May 28 interview with Ars Technica, Musk admitted, “I probably did spend a bit too much time on politics,” adding that the media overstated his involvement in government matters.
“It’s not like I left the companies,” Musk explained. “It was just relative time allocation that was probably a little too high on the government side.”
Tesla’s Q1 earnings call echoed this shift. When Musk revealed he would scale back his time with DOGE in May, Tesla (TSLA) shares jumped over 5% in after-hours trading, even though the company posted an 80% drop in net income.
Tesla Still Holds Bitcoin Despite Revenue Dip
As of March 31, Tesla still held 11,509 Bitcoin (BTC), now worth around $1.24 billion. Despite the brief stock bump, Tesla shares are still down 5.9% year-to-date. Analysts partly blame Musk’s diverted focus and declining Q1 sales. However, other tech giants like Apple, Nvidia, Amazon, and Google have also reported losses in 2025.
