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Tesla chief Elon Musk has stepped down as head of the Department of Government Efficiency. Musk, who announced the decision via a post on X, wrote: “My scheduled time as a Special Government
Employee comes to an end... The department’s mission will only strengthen over time as it becomes a way of life throughout the government,” while thanking U.S. President Donald Trump for
appointing him to lead the initiative to reduce wasteful spending.
Musk’s surprise decision to step down has sparked speculation about tensions with Trump over the controversial “One, Big, Beautiful Bill.”
In an interview with CBS Sunday Morning, Musk expressed disappointment with the House-passed Republican bill, which Trump has aggressively backed. “I was disappointed to see the massive
spending bill, frankly, which increases the budget deficit…and undermines the work that the DOGE team is doing,” Musk said. The legislation, which aims to extend Trump’s 2017 tax cuts and
includes provisions on domestic manufacturing, border security, Medicaid, and clean energy rollbacks, carries a projected $3.8 trillion deficit increase by 2034, according to the
Congressional Budget Office.
Musk’s critique puts him publicly at odds with Trump. “I think a bill can be big or it can be beautiful, but I don't know if it can be both,” Musk said.
While some observers point to the timing of Musk’s resignation and his recent criticism of the bill as evidence of a fallout, Musk’s post has suggested the move had been in the works for
some time.
But Musk had been dialing back his focus on politics for some time
This decision, however, appears to be part of a broader effort to dial down his political involvement and refocus on his core businesses. In recent weeks, Musk has publicly acknowledged that
his time spent on government affairs had grown disproportionate. “I probably did spend a bit too much time on politics,” he told Ars Technica, adding that the media often amplifies such
involvement, creating a distorted perception. He noted that he had “significantly” reduced his political engagement in recent weeks.
During Tesla’s Q1 2025 earnings call, following a 71% drop in quarterly profits, Musk confirmed he would scale back his DOGE role to just “a day or two per week” starting May, and redirect
attention to Tesla and SpaceX. He said the government's aim to “get the financial house in order is mostly done.”
Analysts have long argued that Musk’s political role was a distraction that hurt his companies. Marketing professor Scott Galloway called it “one of the greatest brand destructions,” on one
of the recent episodes of his popular Pivot podcast. He blamed Musk’s alignment with Trump-era politics for Tesla’s plunging reputation and collapsing sales in key European markets. Galloway
argued that Musk had alienated Tesla’s progressive customer base while gaining little in return.