Elon Musk has officially announced his resignation as head of the Department of Government Efficiency (DOGE), a federal cost-cutting initiative under President Donald Trump’s administration.
In a May 29 post on X, Musk confirmed his departure, stating: “Thank you President Trump for the opportunity to reduce wasteful spending.” According to Reuters, a White House official said his off-boarding would begin immediately.
Musk’s role was limited to 130 days as a Special Government Employee, a term set to expire on May 30.
DOGE Faced “Much Worse” Bureaucratic Challenges Than Expected
In an interview with The Washington Post on May 27, Musk admitted the “federal bureaucracy situation is much worse” than anticipated. He added that trying to implement reforms was “an uphill battle.”
“I think I probably did spend a bit too much time on politics,” Musk later told Ars Technica on May 28.
While some critics argue his political focus negatively affected Tesla’s performance, Musk insisted the media exaggerated his involvement in DOGE: “It’s not like I left the companies… just a little too much time on the government side.”
Disputed Savings and Controversy Over DOGE’s Claims
DOGE claimed to have saved $175 billion in taxpayer money since January, but this number has been heavily disputed by several news organizations. The original target was to slash $2 trillion, which was later revised to $150 billion.
DOGE has reportedly cut 12% (260,000 jobs) from the federal workforce, including through buyouts, layoffs, and early retirements.
However, a lawsuit filed by 14 U.S. states accuses Musk and DOGE of illegally exerting control over government systems, including data access, employee terminations, and contract cancellations—allegedly in violation of the U.S. Constitution.
Impact on Tesla and Market Reaction
When Musk first signaled reduced DOGE involvement during Tesla’s Q1 earnings, TSLA shares jumped over 5% in after-hours trading—even though net income had dropped 80%.
As of March 31, Tesla holds 11,509 BTC, worth approximately $1.24 billion.
While Tesla shares are down 5.9% YTD, the dip aligns with declines across major tech firms like Apple, Nvidia, and Amazon in 2025.
Conclusion
Musk’s exit from DOGE marks the end of a high-profile yet controversial effort to cut federal spending. While he claimed the mission will “strengthen over time”, it remains unclear how DOGE will evolve without him.
“It’s harder than rocket science,” Musk joked, summarizing the experience.