Elon Musk announced he will soon step back from his role overseeing the Department of Government Efficiency (DOGE) under the Trump administration. This decision comes as he seeks to dedicate more time to Tesla, his electric car and energy company. During a recent earnings call, Musk shared that much of the initial work to get the DOGE team set up is nearly complete, allowing him to reduce his involvement.
Starting in May, Musk plans to cut down his time with DOGE significantly. He mentioned he would still spend a day or two each week on government matters for the duration of President Trump’s term, as long as he is needed. This shift comes amid a challenging period for Tesla, which recently reported a 71% drop in earnings compared to the same time last year. Despite this, the company’s stock saw a 5% rise in after-hours trading after Musk’s reassurances to investors.
Musk’s work with DOGE has been controversial, leading to protests at Tesla locations and incidents of vandalism and violence, as noted by the FBI. He acknowledged the backlash but emphasized the importance of the work being done to address the national debt, which is nearing $37 trillion. Musk aims to cut $1 trillion from the federal budget, and DOGE claims to have saved an estimated $160 billion through various cuts.
While Musk’s involvement has sparked criticism, he believes the efforts to eliminate waste and fraud in government spending are crucial. He stated that those who benefit from what he calls "wasteful" spending are likely to push back against him and his initiatives. As he prepares to refocus on Tesla, it will be interesting to see how both his companies and the government initiative evolve moving forward.
