Elon Musk’s tenure as the head of the Department of Government Efficiency (DOGE) has come to an end. On May 29, Musk took to social media platform X to announce his departure from his role as the White House’s government cost-cutting czar, citing the position as an “uphill battle.” His departure comes just one day before his 130-day term as a Special Government Employee was set to expire.
Musk’s Challenging Mission
Elon Musk’s time at DOGE was marked by ambitious goals and contentious outcomes. Despite the department’s claim of saving taxpayers $175 billion since President Donald Trump’s return to office, these figures have been met with skepticism from various media outlets, which argue that the numbers are exaggerated and error-ridden. Musk had initially aimed to cut $2 trillion from the federal budget, but later revised this target to a more modest $150 billion.
Musk’s candid remarks to The Washington Post on May 27 highlighted the daunting nature of his assignment. “The federal bureaucracy situation is much worse than I expected,” he confessed, hinting at the complexities and resistance faced in Washington. He also openly criticized a multi-trillion-dollar tax break package approved by House Republicans on May 22, arguing it would inflate the budget deficit and counteract DOGE’s objectives.
Implications for Tesla and Beyond
Interestingly, Musk’s political involvement has not been without its repercussions on his business ventures. Critics have suggested that his focus on governmental affairs may have impacted Tesla’s performance. In a candid interview with Ars Technica on May 28, Musk conceded, “I think I probably did spend a bit too much time on politics.” Nevertheless, he downplayed his involvement, asserting that his engagement with DOGE was overrepresented by the media. This follows recent reports where Musk rubbished claims of his exit from Tesla, as detailed in Dogecoin Unfazed as Elon Musk Rubbishes Report of His Exit From Tesla.
This shift in focus back to Tesla appears to have reassured investors. Following Musk’s announcement in Tesla’s first quarter report that he would reduce his time spent on DOGE, the company’s shares saw a 5% uptick in after-hours trading. However, despite this positive movement, Tesla’s stock remains down 5.9% for the year, aligning with similar declines in other tech giants like Apple and Google.
Legal Challenges and Future Prospects
Musk’s departure from DOGE coincides with a federal judge’s decision to allow a lawsuit against him and the department to proceed. Filed by 14 states, the lawsuit alleges that Musk and DOGE illegally wielded power over government operations, including unauthorized access to government data systems and the termination of federal employees. This legal battle raises questions about the future of DOGE and its initiatives. In a related development, the financial landscape continues to evolve with Nasdaq seeking SEC approval for a Dogecoin ETF, as reported in Nasdaq Seeks SEC Approval to List 21Shares Dogecoin ETF.
Musk, however, remains optimistic about the department’s trajectory. In a recent X post, he expressed confidence that DOGE’s mission will “only strengthen over time as it becomes a way of life throughout the government.” Yet, the road ahead is uncertain, with the legal challenges and widespread skepticism casting long shadows over DOGE’s accomplishments and credibility.
As Musk steps back from his political engagements, the focus shifts to Tesla and his other ventures. The coming months will reveal whether his recalibrated priorities can rejuvenate Tesla’s fortunes and how DOGE will navigate its turbulent waters without its charismatic leader. With Musk hinting at the beta testing of a new financial platform, X Money, slated for a 2025 launch, all eyes will be on his next moves in the ever-evolving landscape of technology and finance.
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This article is based on: Elon Musk leaves DOGE as job was ‘uphill battle’
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
