Elon Musk leaves DOGE as job was ‘uphill battle’

Elon Musk’s tenure as the White House’s cost-cutting czar, leading the Department of Government Efficiency (DOGE), concluded on May 30th, 2025, as mandated by his status as a Special Government Employee. His departure, confirmed via an X post, followed a 130-day stint marked by challenges in reducing federal jobs and programs. Musk described the federal bureaucracy as “much worse” than anticipated, characterizing his efforts as an “uphill battle.”

He publicly criticized a multi-trillion-dollar tax break package passed by House Republicans, arguing it would negatively impact DOGE’s cost-cutting initiatives. DOGE claims to have saved taxpayers $175 billion, a figure disputed by numerous news outlets citing inaccuracies and overstatements. This represents only a small fraction of Musk’s initial $2 trillion budget reduction goal, later revised to $150 billion. Layoffs, buyouts, and early retirement offers resulted in a reduction of approximately 260,000 federal employees, roughly 12% of the workforce.

Despite the controversies and criticisms, Musk expressed confidence in DOGE’s long-term impact, predicting its methods would become ingrained in government operations. Simultaneously, a lawsuit accusing Musk and DOGE of illegally accessing government data, terminating employees, and canceling contracts is proceeding through the courts, filed by 14 states alleging constitutional violations.

In a separate interview, Musk acknowledged dedicating “a bit too much time” to political endeavors, potentially impacting Tesla’s performance. He attributed this to media overrepresentation, clarifying that his involvement wasn’t as extensive as reported and that he had significantly reduced his time commitment in recent weeks. Tesla’s stock rose over 5% following Musk’s announcement of reduced DOGE involvement, despite an 80% drop in net income reported in the first quarter. As of March 31st, Tesla retained 11,509 Bitcoin, valued at approximately $1.24 billion. Tesla’s year-to-date stock performance, however, reflects a 5.9% decline, partly attributed to Musk’s reduced focus on the company and decreased sales. This downturn aligns with the overall struggles faced by other major tech firms in 2025.