SpaceX CEO and Tesla Inc. co-founder Elon Musk confirmed that he is stepping down from his role as the special government employee leading the Department of Government Efficiency (DOGE). Musk cites the task as an ‘uphill battle’ and thanked current US President Donald Trump for the opportunity to play his role in reducing wasteful spending. During his tenure, Musk was critical of the government’s budget deficit and tax break packages.
The tech mogul has been very vocal about his stance on government inefficiency. In his post on the 29th of May, he mentioned that the federal bureaucracy was worse than he had originally anticipated. Despite this, Musk remains optimistic about DOGE’s mission, stating that it will only strengthen over time.
According to a Reuters report, DOGE succeeded in reducing 12% or 260,000 of the 2.3 million federal workforce during Musk’s tenure. However, the agency’s claim of saving taxpayers $175 billion is disputed due to alleged inaccuracies and overstatements.
Looking forward, Musk plans to reduce his involvement with politics significantly. To this end, he admitted in a recent interview with Ars Technica that he may have spent too much time engaging in political affairs. Musk’s departure saw Tesla shares rise over 5% in after-hours trading, a clear indication that investors are keen to see him focus more on Tesla and SpaceX’s operations.
In conclusion, whilst Elon Musk’s departure from DOGE is a setback for the Trump administration’s cost-cutting efforts, it’s seen as a positive move for Musk’s companies. His renewed focus on business endeavours is expected to bring innovative solutions to his electric vehicle and aerospace companies.
