Elon Musk has announced his departure from the Trump administration, bringing to an end a five-month stint as head of the Department of Government Efficiency (DOGE), a cost-cutting agency established by executive order on the first day of Donald Trump’s second term.
The Tesla and SpaceX CEO confirmed the move in a post on his platform X, saying, “As my scheduled time as a Special Government Employee comes to an end, I would like to thank President Donald Trump for the opportunity to reduce wasteful spending.” He added that the DOGE mission “will only strengthen over time as it becomes a way of life throughout the government.”
The White House confirmed his offboarding process began Wednesday evening (AEST), though Musk reportedly did not speak directly with Trump before announcing his exit.
Musk’s departure follows growing internal tensions and a sharp critique of Trump’s marquee tax and spending bill, which passed the House by a single vote and is projected to add nearly US$3.8 trillion to the national debt over the next decade. Musk told CBS the bill “undermines the work” of DOGE, adding, “I think a bill can be big or it can be beautiful. But I don’t know if it can be both.”
Originally tasked with cutting up to US$2 trillion in government spending, Musk steadily lowered that target, ultimately settling on US$150bn. His aggressive push to downsize the federal workforce triggered the departure of around 260,000 employees, largely through buyouts and early retirements, though several court rulings later forced the reinstatement of wrongly terminated staff.
DOGE’s sweeping actions drew legal scrutiny and political backlash. Musk clashed with key cabinet figures, including Treasury Secretary Scott Bessent and Trade Adviser Peter Navarro—whom Musk publicly called “a moron.” His unconventional approach, which included brandishing a red chainsaw at CPAC to symbolise bureaucratic cuts, made him a polarising figure within the administration.
Investors and pension fund managers have also raised concerns. Tesla’s share price dropped as much as 45% during his tenure in government, and sales fell 13% in the March quarter. Activists staged protests and vandalism, prompting the US Attorney General to warn of charges for domestic terrorism.
Though Musk says he will reduce political donations—having spent nearly US$300m backing Trump and other Republicans—he has not ruled out continued involvement, noting he plans to maintain a small office in the White House. For now, however, he says his focus will return to Tesla, SpaceX, and his AI venture, xAI.
