Elon Musk Steps Down from DOGE, Silicon Valley Politics Enter 'Find Out' Stage

Elon Musk steps down as head of the Department of Government Efficiency (DOGE), citing a cooling relationship with the Trump administration and slumping Tesla sales. Despite his departure, Musk assures that DOGE's mission to reduce government waste is not ending. The move marks a shift in Silicon Valley's relationship with politics, entering a "find out" stage.

Elon Musk has resigned as the head of the Department of Government Efficiency (DOGE), citing a strained relationship with the Trump administration and declining Tesla sales. Musk, who served as the White House's special government employee leading DOGE, confirmed his exit in a May 29 X post [1]. His tenure was marked by a challenging effort to reduce federal jobs and programs, which he described as an "uphill battle" [1].

Musk's departure comes amidst ongoing legal scrutiny of DOGE. A lawsuit filed by 14 states accuses Musk and DOGE of illegally accessing government data systems, terminating federal employees, and canceling contracts at federal agencies [1]. Despite these challenges, Musk maintains that DOGE's mission to reduce government waste will continue to strengthen over time [1].

Musk's decision to step down from DOGE coincides with a significant shift in his focus towards Tesla. In a May 27 interview with The Washington Post, Musk admitted that he had spent "a bit too much time" on politics, which some critics claim has impacted Tesla's performance [1]. Tesla's stock rose over 5% in after-hours trading on May 27 following Musk's announcement that his time spent on DOGE would decrease significantly [1]. However, Tesla shares are still down 5.9% year to date, in part due to Musk's political involvement and falling sales in the first quarter [1].

The move by Musk highlights a broader trend in Silicon Valley's relationship with politics. As Musk steps away from DOGE, the industry enters a "find out" stage, exploring the potential impacts of political involvement on business performance and vice versa.

References:
[1] https://cointelegraph.com/news/elon-musk-leaves-doge-admit-tougher-than-expected
[2] https://san.com/cc/shakeup-at-ice-as-trump-administration-looks-to-triple-arrests/