SpaceX and Tesla CEO Elon Musk is taking a step back from managing the Department of Government Efficiency (DOGE) in light of his companies not faring well in the market. Musk has reportedly pledged to “significantly” cut back his role in the U.S. government after his electric car firm reported a huge drop in profit and sales for the start of this year.
What is the Department of Government Efficiency (DOGE)?
Elon Musk was appointed to lead the Department of Government Efficiency (DOGE), a temporary advisory body created in January 2025 under President Trump. The department’s goal was to reduce wasteful spending, streamline government operations, and restructure agencies. Under Musk’s leadership, DOGE implemented workforce cuts and reorganization within federal agencies, including USAID and the Department of Education. These actions led to significant controversy, with some arguing that the changes harmed essential public services and violated constitutional guidelines for appointments.
READ: Will Elon Musk own TikTok soon? (January 14, 2025)
In April, Musk announced he would scale back his involvement due to financial challenges at Tesla, including a 71% drop in profits. He planned to continue limited duties until May 30, 2025, marking the end of his 130-day role. As Musk steps back, the future of DOGE remains uncertain, with questions about its long-term impact on federal efficiency and governance continuing to generate debate.
According to media reports, Musk said his “time allocation to Doge” would “drop significantly” from next month, adding he would spend only one to two days per week on it after accusations that he has taken his focus off Tesla.
Musk stepping away from DOGE would mark a significant shift in the department’s direction and influence. His departure could lead to reduced visibility and impact of the reforms DOGE implemented, particularly its aggressive workforce cuts and government restructuring.
READ: Trump shows support to Tesla, calling attacks on the EV maker ‘domestic terrorism’ (March 12, 2025)
Without Musk’s leadership, the department might face challenges in maintaining momentum or legitimacy, especially given his controversial role. It could also impact future efforts to streamline government operations and cut costs, leaving the future of DOGE uncertain, with questions surrounding the continuation of its reforms and leadership.
Earlier this month, Trump said he would keep Musk “as long as I could keep him.”