Key Points:
- Musk’s Exit Confirmed: Elon Musk will soon step down as a special government employee in Trump’s administration, tasked with cutting $1 trillion in federal spending.
- End of 130-Day Term: Musk’s tenure is expected to conclude by late May, coinciding with the end of his temporary government role.
- Political Liability Concerns: Growing frustrations within Trump’s circle over Musk’s unpredictability and political controversies contributed to the decision.
- Stock Market Impact: Tesla shares rebounded 3% following the news, reversing earlier losses from weak quarterly deliveries.
Washington: Billionaire entrepreneur Elon Musk is set to step down from his role in the Trump administration, marking the end of a controversial tenure as a special government employee. President Donald Trump confirmed the decision to his Cabinet and close aides, citing Musk’s desire to return to his businesses. The move comes amid growing concerns about Musk’s erratic behavior and political liabilities within Trump’s circle.
Musk’s Role in Government
Musk was appointed by Trump to lead the Department of Government Efficiency (DOGE), tasked with slashing $1 trillion in federal spending and dismantling various U.S. agencies. His 130-day term as a special government employee temporarily exempted him from conflict-of-interest regulations, allowing him to focus on streamlining government operations. However, insiders suggest that both Musk and Trump agreed it was time for him to refocus on his business ventures.
Timeline of Departure
While no specific date has been provided, sources indicate Musk’s departure will align with the conclusion of his 130-day term at the end of May or early June. During a Cabinet meeting on March 24, Trump hinted at Musk’s transition, stating, “At some point Elon’s going to want to go back to his company. He wants to. I’d keep him as long as I could keep him.”
Challenges During Tenure
Musk’s time in government has been marked by both praise and criticism:
- Accomplishments: His efficiency measures have led to significant budget cuts and reforms.
- Controversies: Critics within the administration have described Musk as unpredictable, citing difficulties in communication with Cabinet secretaries and White House staff. His off-message remarks on social media platform X (formerly Twitter) often created turmoil.
The political risks surrounding Musk were highlighted during Wisconsin’s Supreme Court election, where his $20 million investment failed to secure a victory for the Trump-backed candidate. This loss fueled perceptions of Musk as a political liability.
Stock Market Reaction
Following reports of Musk’s impending departure, Tesla shares rebounded by 3%, reversing earlier losses caused by weaker-than-expected first-quarter vehicle deliveries. Shares of government contractors also saw gains amid speculation about changes in federal spending policies.
Trump’s Praise for Musk
Despite challenges, Trump remains appreciative of Musk’s contributions. During recent remarks, he referred to Musk as “a patriot” and “a friend,” acknowledging the sacrifices he made during his tenure, including facing death threats and vandalism targeting Tesla vehicles.
Future Role
Insiders suggest that while Musk may step back from formal duties, he is likely to retain an informal advisory role within the administration. A senior official remarked that anyone expecting Musk to completely exit Trump’s orbit is “fooling themselves.”
As Elon Musk prepares to leave his government role, questions remain about the long-term impact of his efficiency measures on federal agencies. Meanwhile, Tesla investors are optimistic about his return to focus on business operations during a challenging period for the automaker. Both Trump and Musk have hinted at this transition, signaling a shift in their partnership but not an end to their collaboration altogether.
