Faster than a Tesla catching fire at a supercharger, Elon Musk has reportedly agreed to step down from a special role as Washington’s top waste fighter at the head of the Department of Government Efficiency (DOGE).
In an abrupt move, US president Donald Trump on Tuesday reportedly informed his cabinet and inner circle that Musk will be stepping away from his role in the administration within weeks, a decision that has sent shock waves through Washington and the markets.
Musk reportedly said he wants to go back to minding his own business — EV maker Tesla and Space X — instead of finding ‘waste’ in Washington and gutting entire departments of the US government.
Media reports said the sentiment is ’mutual’ and that Trump and he remain friends and ideological soulmates.
After weeks of losses, Tesla shares were up in New York on Tuesday, surging USD$11.76 or almost 5% in morning trading. The stock is down more than 26% since the start of the year.
Musk, for his part, seemed unshaken by Tesla’s post-departure stock surge. When asked about the volatility, he infamously quipped, “Like a hammer on a soufflé.”
But after months of growing tensions, including violent protests at Tesla dealerships and a spate of backlash over his aggressive cuts, Musk’s departure comes amid reports of strained relations with Trump’s inner circle and a broader sense that the electric vehicle magnate’s tenure had become a political liability.
A recent NBC News poll found that a majority of American voters (51%) view Musk unfavourably, with only 39% holding a positive opinion.
Musk’s sudden exit comes just as his presence in Washington seemed poised for a showdown with Trump on the public stage. Both men have dominated the media in recent months, drawing attention with their shared affinity for provocative statements and high-profile appearances.
Musk, despite not being elected to office, managed to rival Trump in media coverage, even attending Oval Office meetings, stepping onto the White House lawn, and boarding Air Force One.
Even before the US election last November, he has become the dominant figure in Trump’s orbit, sharing the spotlight with the president at high-profile events and even hosting a Tesla showcase on the White House South Lawn.
But as his presence in Washington grew, so did concerns that Musk, who was never elected to office, was competing with Trump himself for public attention.
Trump, who once embraced Musk as a symbol of private-sector success, had recently made clear to his cabinet that they — not Musk — were in charge of their respective departments even as they were being gutted.
The question now is whether Musk’s business empire will thrive or falter as he steps back from Washington’s front lines.
Adding to Musk’s woes, Tesla stands to suffer from Trump’s newly announced tariffs on China.
The company relies heavily on suppliers in Mexico and China, and Musk himself has warned of the financial impact. “Important to note that Tesla is NOT unscathed here,” he posted on Twitter (“X”). “The cost impact is not trivial.”
Complicating matters further, Musk reportedly received a classified military briefing on US attack plans in the event of war, raising ethical concerns about his access to sensitive national security information. Critics question whether a private businessman should have been granted such high-level insights, particularly as he returns to running a company with global interests.
Trump’s decision to allow Musk to step down came just as the billionaire faced growing criticisms of waste and fraud within SpaceX’s own government contracts with NASA and the Pentagon — contracts some say exemplify the very issues DOGE was designed to uncover.
His public behaviour, including a salute that was widely compared to the Nazi salute, only deepened his ‘evil villain’ persona.
But White House officials maintain Musk’s departure was always pre-ordained; his 130-day designation as a special government employee was set to expire in late May or early June.
However, ‘sources’ close to the president acknowledge that Musk’s departure has been expedited due to mounting controversies after weeks of internal debate.
While Musk is stepping away from his government post, many observers believe he will continue to wield significant influence, especially with his ongoing ties to Trump, and he remains a regular at Trump’s Mar-a-Lago, Florida resport.
“Anyone who thinks Musk is going to disappear entirely from Trump’s orbit is fooling themselves,” one insider told Politico. “He’s still a major player in MAGA politics and will have access to the president whenever he wants.”
