Elon Musk Steps Down from DOGE Role Citing Bureaucratic Challenges, Tesla Shares Down 5.9% Year to Date

Elon Musk has officially stepped down from his role as a Special Government Employee leading the Department of Government Efficiency (DOGE), citing the challenges of navigating the federal bureaucracy as a primary reason for his exit. Musk's tenure, which was limited to a maximum of 130 days by law, ended on May 30. In a post on X, Musk expressed gratitude to President Trump for the opportunity to reduce wasteful spending, but acknowledged that the mission of DOGE would continue to strengthen over time.

Musk's decision to step down comes just one day after he publicly criticized Trump's legislative centerpiece, a sweeping bill that combines tax cuts with immigration enforcement. Musk described the bill as "a massive spending bill" that undermines the work of DOGE. Speaking to CBS, Musk added, "I think a bill can be big or it could be beautiful. But I don’t know if it could be both." Trump responded to the criticism, stating that while he was not happy with certain aspects of the bill, he was thrilled by others and that the bill still had a way to go.

Musk's frustrations with the federal bureaucracy echo wider concerns within the Republican Party. Republican Sen. Ron Johnson of Wisconsin expressed support for Musk's stance, indicating that there is enough internal opposition to slow the bill in the Senate. Speaker Mike Johnson thanked Musk for his work and promised that the House would continue acting on DOGE’s recommendations.

Musk's departure from the Trump administration is not the only change he is making. He has also announced that he is leaving his role as a top adviser to President Trump, a position he held for a significant period. Musk's decision to step down from both roles underscores his growing disillusionment with the political landscape in Washington. He plans to focus on his companies, including

Musk's exit from the Trump administration and his public criticism of the president's legislative agenda may embolden fiscal conservatives who are wary of the legislation. Some, including Utah Sen. Mike Lee, have signaled their intention to push for more aggressive cost-cutting measures in the Senate version of the bill. The Congressional Budget Office estimates that the bill would add $3.8 trillion to the deficit over the next decade, a figure that watchdog groups dispute.

Musk's departure from the Trump administration and his role as a top adviser to the president highlights the deeper divisions within Republican leadership, particularly over how to balance tax cuts with federal austerity. Musk, once a vocal Trump supporter, has distanced himself from the president in recent months, citing the challenges of navigating the federal bureaucracy and the uphill battle of improving things in Washington. His decision to step down from both roles underscores his growing disillusionment with the political landscape and his desire to focus on his companies and scale back his political spending.

Musk's departure from DOGE comes as a federal judge allowed a lawsuit to proceed that accuses Musk and DOGE of illegally exerting power over government operations. The lawsuit, filed by 14 states, alleged that Musk and DOGE violated the Constitution by illegally accessing government data systems, terminating federal employees and canceling contracts at federal agencies.

In a May 28 interview with Ars Technica, Musk, the CEO of EV maker Tesla, admitted that he spent “a bit too much time” in politics, which some critics claim has impacted Tesla’s performance. “I think I probably did spend a bit too much time on politics,” Musk said. However, he added that the time he spent on DOGE wasn’t as significant as many believed, and he blamed media coverage for overrepresenting his involvement. “It’s not like I left the companies. It was just relative time allocation that probably was a little too high on the government side, and I’ve reduced that significantly in recent weeks.”

Musk's departure from DOGE and his decision to focus on his companies come at a time when Tesla's shares are down 5.9% year to date, in part due to Musk diverting his attention away from the company and Tesla’s sales falling considerably in the first quarter. However, the fall is in line with other Big Tech firms, which are also in the red in 2025.