TLDR
- Elon Musk stepped down from DOGE (Department of Government Efficiency) on Wednesday after reaching his 130-day limit as a Special Government Employee
- DOGE claims to have saved $175 billion through government cuts, though this figure is disputed
- An estimated 260,000 federal workers lost jobs or took redundancy deals under DOGE’s cost-cutting efforts
- Tesla sales dropped 13% in Q1 2025, the company’s largest delivery decline ever, with activists staging boycotts over Musk’s political involvement
- Musk criticized Trump’s new spending bill, saying it “undermines” DOGE’s mission to reduce government waste
Elon Musk confirmed Wednesday that he is leaving his role at the Department of Government Efficiency (DOGE), the Trump administration agency he helped create to reduce federal spending. His departure was expected after reaching the 130-day annual limit for Special Government Employees.
The billionaire thanked President Trump for the opportunity in a post on X. He said the DOGE mission would continue to strengthen throughout the government.
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
DOGE was created to address what Musk called the “existential” threat of national debt. The agency was named partly as a reference to Dogecoin, Musk’s favored cryptocurrency.
The department claims to have saved $175 billion through government cuts. However, this figure has been widely disputed by critics and experts.
Musk co-founded DOGE with fellow billionaire Vivek Ramaswamy, who left in January. His departure leaves the agency without either of its original leaders.
Mass Job Cuts Hit Federal Workforce
DOGE’s cost-cutting efforts led to widespread job losses across the federal government. An estimated 260,000 out of 2.3 million federal civilian workers lost their jobs or accepted redundancy deals.
The rapid-fire approach to cutting staff occasionally led to mistakes. Some workers were incorrectly let go, including staff at the US nuclear program.
Federal judges blocked some mass firings in court. They ordered terminated employees to be reinstated in several cases.
Musk initially pledged to cut “at least $2 trillion” from the federal budget. He later reduced this target to $150 billion.
Tesla Faces Backlash Over Political Involvement
Musk’s government role coincided with problems at his electric car company Tesla. Sales dropped 13% in the first quarter of 2025, the company’s largest delivery decline ever.
Tesla’s stock price fell as much as 45% but has mostly recovered. The company warned investors that changing political sentiment could hurt vehicle demand.
Activists have called for Tesla boycotts and staged protests outside dealerships. Some vandalized Tesla vehicles and charging stations across the country.
US Attorney General Pam Bondi warned that acts of vandalism would be treated as domestic terrorism. The backlash became so widespread it drew federal attention.
Criticism of Trump’s Spending Plans
Musk’s exit came one day after he criticized Trump’s new budget bill. He called the multi-trillion dollar spending package disappointing in a CBS interview.
The SpaceX and Tesla boss said Trump’s “big, beautiful bill” would increase the federal deficit. He argued it undermines DOGE’s work to reduce government waste.
Musk said a bill can be big or beautiful but questioned if it could be both. His criticism highlights tensions within the Trump administration over spending priorities.
Senator Elizabeth Warren previously called DOGE a “venue for corruption.” The initiative faced partisan clashes and multiple lawsuits during Musk’s tenure.
Musk told investors last month he would allocate far more time to Tesla going forward. He promised to reduce his political involvement after spending nearly $300 million backing Trump’s campaign.
The billionaire committed to leading Tesla for the next five years at an economic forum in Qatar. He announced plans to step back from political donations after his record spending in 2024.
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