Elon Musk confirmed his departure from the Department of Government Efficiency (DOGE), ending his role after a short but controversial tenure. Musk served as a Special Government Employee under President Donald Trump and faced growing resistance while attempting to cut federal spending. His exit comes as he criticized both the scale of federal bureaucracy and a recent tax package that widened the deficit.
Elon Musk Exits DOGE After Reaching Legal Time Limit
Elon Musk completed his 130-day legal limit as a Special Government Employee on May 30. His exit follows mounting challenges in reducing the federal government’s size and spending. The White House began its off-boarding process on May 29, confirming his departure publicly.
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
Despite initial optimism, Elon Musk encountered intense bureaucratic resistance in Washington, which limited the scope of DOGE’s intended reforms. His original goal to reduce federal spending by $2 trillion was later scaled back to $150 billion. DOGE claimed $175 billion in taxpayer savings, but multiple independent analyses dispute these figures.
Musk’s role came under increasing scrutiny after several agencies reported operational issues following staff reductions and contract terminations. Critics argued that rapid implementation caused disruptions, while others pointed to errors in DOGE’s financial reporting. Government auditors are now reviewing DOGE’s reported accomplishments and methods used to calculate cost savings.
DOGE Cuts Jobs, Faces Legal Backlash
Underk Elon Musk’s leadership, DOGE oversaw the reduction of 260,000 federal employees through layoffs, buyouts, and early retirements. This represented nearly 12% of the federal workforce and significantly affected multiple departments across the government. Several unions and lawmakers criticized the rapid downsizing as harmful and poorly managed.
A federal lawsuit filed by 14 states accuses Elon Musk and DOGE of unconstitutional actions during their cost-cutting efforts. Plaintiffs allege illegal access to government data systems and unauthorized employee terminations without proper legal channels. The court allowed the case to proceed, increasing legal pressure on Musk and his federal allies.
DOGE also canceled several long-term contracts, triggering complaints from contractors and further legal scrutiny from affected agencies. Investigators are examining whether the contract terminations followed legal protocols and due process. The lawsuit remains ongoing as federal courts assess the constitutional arguments presented by state attorneys general.
Musk Shifts Focus Away from Politics
In recent interviews, Elon Musk acknowledged that his time in politics had affected his business responsibilities, particularly at Tesla. ‘I gave the wrong priorities,’ he said, noting he had given more attention to government work, which could have pulled his attention away from operational matters at his companies. But Musk insisted he was taking a trivial part in it all.
Tesla’s first quarter of 2025 net income dropped sharply by 80%, raising investor worries. Tesla shares climbed above 5% after hours following Musk’s announcement to scale back DOGE duties. Analysts said the market responded positively to Musk’s renewed focus on Tesla’s core operations.
As of March 31, Tesla still held 11,509 Bitcoin worth $1.24 billion, though it continued to sell some of its Bitcoin holdings. Yet its shares are down nearly 6% so far in 2025, which tracks with the rest of the tech sector. More broadly, Apple, Amazon, and Nvidia have all lost money in a volatile year.
FAQs
Why did Elon Musk leave DOGE?
Elon Musk left because his legal 130-day term as a Special Government Employee ended on May 30.
What was Elon Musk’s role at DOGE?
He led the Department of Government Efficiency, tasked with cutting waste and reducing the federal workforce and spending.
Did DOGE actually save $175 billion?
DOGE reported $175 billion in savings, but multiple independent audits dispute these numbers as inaccurate and misleading.
Is Musk facing legal trouble over DOGE actions?
Yes, a lawsuit by 14 states alleges constitutional violations and unauthorized control over government systems and employment decisions.
Did DOGE impact Elon Musk’s business performance?
Tesla’s performance reportedly suffered during Musk’s time with DOGE, though he claimed the media exaggerated his political involvement.
Glossary of Key Terms
Elon Musk – CEO of Tesla and former head of the Department of Government Efficiency under President Donald Trump.
DOGE – Department of Government Efficiency, a federal initiative aimed at reducing spending and workforce size.
Special Government Employee – A temporary federal role allowing outside experts to serve for limited durations.
Buyout – A financial incentive offered to employees to retire early or resign voluntarily.
Federal Workforce – The total number of employees working across U.S. government agencies and departments.
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