Elon Musk leaves Trump Highlights: Tesla chief exits US govt, frustrated DOGE ‘gets blamed’ for everything

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Elon Musk's break with the Trump administration means investors will hope he refocuses on his sprawling empire as Tesla battles slumping sales and after SpaceX's latest rocket launch fell short of expectations, Reuters reported.

Musk called time on his White House stint on Wednesday, giving Tesla investors some succor after shares slumped this year in part due to the backlash to his support of U.S. President Donald Trump and right-wing parties in Europe.

Steve Davis, who served as Elon Musk’s de facto second-in-command at the Department of Government Efficiency, is following the billionaire adviser out of President Donald Trump’s signature cost-cutting effort, Bloomberg quoted a person familiar with the move on Thursday.

Answering reporters in April when asked about Elon Musk stepping back from DOGE to focus on his companies, Donald Trump did not have a concrete answer.

“I can't tell you that. I will say this — a lot of the people working with DOGE are the secretaries, the heads of the various agencies, and they've learned a lot. And they're dealing with the DOGE people. I think some of them may try to keep the DOGE people… At a certain point, I think it will end,” Donald Trump had said.

As chief of DOGE, Elon Musk was a “special government employee” — people who join the US government for a short period of time to provide specialised expertise. As per US ethics laws, special government employees cannot serve for more than 130 days in a 365-day period.

Tesla shares rose more than 2% on Thursday after news that CEO Elon Musk was stepping away from the Trump administration, fueling hopes that he will sharpen focus on the automaker as it gears up for its hotly anticipated robotaxi debut.

“As a Special Government Employee, Elon Musk led the Department of Government Efficiency (DOGE), claiming $160 billion in savings by terminating wasteful contracts, like $255 million from 269 contracts, and modernizing IT systems, such as digitizing the OPM retirement process. DOGE also cleaned Social Security records and supported voter integrity measures,” the GrokAI on X said after a user asked it a question on the topic.

However, the AI further said that Musk's stint at DOGE caused $135 billion loss in productivity.

“However, these efforts face criticism for potential costs of $135 billion in lost productivity, legal challenges, and service disruptions. Concerns about Musk's business conflicts and political motivations persist, with public opinion divided, as 54% view him unfavorably. The true impact of DOGE remains debated amid ongoing scrutiny”.

President Donald Trump dismissed criticism from Elon Musk, his billionaire donor and adviser, over the cost of his signature tax bill, telling reporters on Wednesday that compromises were made to secure the necessary votes, reported Bloomberg.

“Number one, we have to get a lot of votes,” Trump said. “We can’t be cutting — you know, we need, we need to get a lot of support.”

“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,” he wrote. “The @DOGE mission will only strengthen over time as it becomes a way of life throughout the government.”

Elon Musk's exit marks the end of a turbulent chapter that included thousands of layoffs, the evisceration of government agencies and reams of litigation. Despite the upheaval, the billionaire entrepreneur struggled in the unfamiliar environment of Washington, and he accomplished far less than he hoped, reported the Associated Press.

Tesla has been testing driverless Model Y cars in Austin, Texas and aims to deliver the first unit in June, CEO Elon Musk said on Thursday, amid buzz of an imminent robotaxi launch.

Musk had said earlier this year that such a launch would start with 10 or 20 Model Y vehicles.

"A month ahead of schedule," he said on Thursday in his X post, adding that the tests had not seen any "incidents."

He had previously said that Tesla aimed to begin tests of robotaxis only by the end of June.

DOGE is poised to continue its work even as Musk steps back, with staffers to remain in place, embedded across federal agencies, for months or years to come.

As per US ethics laws, special government employees cannot serve for more than 130 days in a 365-day period. So, Elon Musk's role in the Donald Trump administration was always temporary, with a fixed term of 130 days. His term, which began on inauguration day, January 20, would have ended on May 30.

Hours after announcing his departure for the Trump government, Elon Musk posted on X saying that Tesla will deliver the first unit of its driverless Model Y cars in June 2025 — a month ahead of schedule. The vehicles are being tested in Austin, Texas.

Earlier this year, Elon Musk had said the launch would have 10-20 Model Y units, and test would begin by June-end.

According to a White House source, Elon Musk's decision to leave was his own, and made with the support of US President Donald Trump, Bloomberg reported.

A White House official said Elon Musk began the off-boarding process late on May 28, adding that the departure was his own decision, with Trump's support. 

Elon Musk exits Trump administration: Here's a look at his work at DOGE—tall $2 trillion cut promise, mass layoffs, more

Elon Musk's companies, especially auto major Tesla, faced the brunt of the public lashing against DOGE spending cuts and mass layoffs. 

Responding to protesters torching a few of the electric vehicles, and the firm's falling sales, Musk told the Washington Post in March, "People were burning Teslas. Why would you do that? That's really uncool." 

For US government employee's, Elon Musk's DOGE was an upheaval machine. The turbulent times saw thousands of layoffs, complete department shutdowns, and reams of litigation, as per an AP report. 

Despite the noise, the accomplishments were far few than Elon Musk may have hoped, it added. The report noted that the billionaire has dramatically reduced his target for cutting spending — from $2 trillion to $1 trillion to $150 billion.

Elon Musk has previously admitted that he did not achieve all his goals with DOGE even though tens of thousands of people were removed from government payrolls and several departments were gutted or shut down, AFP reported.

There is no succession plan outlined at DOGE. In an earlier interview, Elon Musk joked that it is a “way of life” that does not need a leader.

“DOGE is a way of life, like Buddhism. Buddha isn’t alive anymore. You wouldn’t ask the question: ‘Who would lead Buddhism?’” said Elon Musk. 

Speaking to Bloomberg on May 20, Elon Musk indicated he would be pulling back on political spending. The billionaire poured over $250 million into Donald Trump’s 2024 US election campaign. 

“I think I’ve done enough. If I see a reason to do political spending in the future, I will do it. I don’t currently see a reason,” he said. 

According to a source who spoke to Reuters, Elon Musk did not have a formal conversation with US President Donald Trump before announcing his exit from DOGE. "Elon Musk’s exit was decided at a senior staff level," the source added.

A White House official confirmed Elon Musk's departure to Reuters and said that the billionaire's “off-boarding will begin tonight.”

US President Donald Trump brushed off criticism from billionaire donor and adviser Elon Musk regarding the cost of his flagship tax bill, telling reporters Wednesday that certain compromises were necessary to ensure the legislation's passage.

“We will be negotiating that bill, and I’m not happy about certain aspects of it, but I’m thrilled by other aspects of it. That’s the way they go. Number one, we have to get a lot of votes. We can’t be cutting — you know, we need, we need to get a lot of support.”

Just days ahead of his departure, the chief of DOGE, spoke out against Donald Trump's tax bill. In an interview with CBS News, Elon Musk said he was “disappointed to see the massive spending bill, frankly, which increases the budget deficit, not just decreases it, and undermines the work that the DOGE team is doing.”

“I think a bill can be big or it can be beautiful, but I don’t know if it can be both,” he added.

In an interview with the Washington Post, Elon Musk said the bureaucracy in Washington DC is “much worse” than he realised. This was on May 27, just one day before he announced his departure from Trump's administration.

Musk added, “The federal bureaucracy situation is much worse than I realised. I knew there were problems, but trying to improve things in (Washington) DC is definitely an uphill battle, to say the least.”

In an interview with the Washington Post ahead of the SpaceX launch on May 27 (which exploded), Elon Musk expressed frustration that DOGE, had become a scapegoat for criticism. 

“DOGE is just becoming the whipping boy for everything. Whenever something goes wrong anywhere, we get blamed even if we have nothing to do with it,” he said.

For US government employee's, Elon Musk's DOGE was an upheaval machine. The turbulent times saw thousands of layoffs, complete department shutdowns, and reams of litigation, as per an AP report. Despite the noise, the accomplishments were far few than Elon Musk may have hoped, it added.

The report noted that the billionaire “struggled” in the unfamiliar environment of Washington and increasingly expressed frustration about resistance to his goals. He also dramatically reduced his target for cutting spending — from $2 trillion to $1 trillion to $150 billion.

Answering reporters in April when asked about Elon Musk stepping back from DOGE to focus on his companies Tesla and SpaceX, Donald Trump did not have a concrete answer about the future of the department without the billionaire.

“I can't tell you that. I will say this — a lot of the people working with DOGE are the secretaries, the heads of the various agencies, and they've learned a lot. And they're dealing with the DOGE people. I think some of them may try to keep the DOGE people… At a certain point, I think it will end,” Donald Trump had said.

Elon Musk's role in the Donald Trump administration was temporary by nature, with a fixed term of 130 days. This began on inauguration day, January 20, and would have ended on May 30, 2025.

As per US ethics laws, special government employees cannot serve for more than 130 days in a 365-day period.

As chief of DOGE, Elon Musk was a “special government employee” — a designation given to those who join the government for a short period of time for specific reasons. This is usually used to induct subject specialists into the US government for their specialised expertise.

“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 spendingm. The DOGE mission will only strengthen over time as it becomes a way of life throughout the government,” Elon Musk wrote on X.

Tesla CEO Elon Musk announced his departure from the Trump administration early Thursday. In a post on X, the head of the US Department of Government Efficiency (DOGE) said, “...my scheduled time as a Special Government Employee comes to an end.”

Musk also thanked the US President for the opportunity he gave him “to reduce wasteful spending.”