Elon Musk is leaving DOGE — but not the one you think.
On May 29, Elon Musk announced his departure as head of the U.S. Department of Government Efficiency (DOGE), a short-lived federal initiative aimed at slashing wasteful spending. The name playfully referenced the Dogecoin cryptocurrency, but the job itself was no joke.
Musk, appointed as a Special Government Employee under President Trump’s administration, confirmed via X that he’s stepping down as his 130-day term limit nears its May 30 end. He thanked Trump “for the opportunity to reduce wasteful spending,” while also admitting the job turned out to be far more difficult than expected.
“The federal bureaucracy situation is much worse than I thought,” Musk told The Washington Post. “It was an uphill battle trying to improve things in DC.”
DOGE Cuts vs. Criticism
The DOGE initiative claims to have saved $175 billion since January, primarily through layoffs, program cuts, and contract cancellations. But multiple media outlets have challenged those numbers, calling them inaccurate or inflated.
According to a Reuters report, DOGE trimmed about 260,000 jobs, roughly 12% of the federal workforce, using tools like early retirement and buyouts. Still, this falls short of Musk’s earlier promise to cut $2 trillion from the federal budget — a goal he later revised to $150 billion.
Meanwhile, Musk criticized recent House-approved tax breaks, saying they would offset any savings achieved by DOGE and worsen the national deficit.
Political Fallout, Legal Trouble
Musk’s time in government hasn’t been without controversy. A lawsuit filed by 14 U.S. states is proceeding against Musk and the DOGE program, alleging they overstepped constitutional boundaries by accessing government systems, firing employees, and canceling federal contracts.
Adding to the tension, Musk told Ars Technica on May 28 that he regrets spending so much time on politics.
“I probably did spend a bit too much time on politics,” he said. “I’ve reduced that significantly in recent weeks.”
Tesla Impact and Market Reaction
Investors seem relieved. When Musk confirmed in Tesla’s Q1 earnings that his government involvement would decline, Tesla (TSLA) shares jumped over 5% in after-hours trading — even though net income fell by 80%.
Critics argue Musk’s political entanglements have distracted him from running Tesla, which has faced a 5.9% year-to-date decline in share price and a drop in sales. Yet this mirrors a broader tech slump, with other giants like Apple, Nvidia, and Amazon also down in 2025.
Despite the drama, Tesla still holds 11,509 BTC, valued at around $1.24 billion, keeping Musk tightly linked to crypto whether he’s in government or not.
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