Elon Musk Abandons DOGE Role as Tesla Profits Collapse - Is He And Trump Still Friends?

Is Elon Musk Finished with Trump?The billionaire's involvement in government affairs has been anything but predictable, marked by abrupt turns and fierce scrutiny.

Now, the tech mogul appears to be stepping back—perhaps for good.

Musk Steps Down from White House Role

As one of President Donald Trump's senior advisers, Musk has officially announced that he is stepping back from his informal position as head of the so-called Department of Government Efficiency, or DOGE. Some critics claim the move is linked to mounting pressure on Tesla, while others suggest it simply marks a natural conclusion to his advisory stint.

In a statement shared on his social media platform X, Musk confirmed he would no longer be part of Trump's cost-cutting task force. He thanked the President for the opportunity to contribute and explained that his time as a 'special government employee'—a designation that limits government service to 130 days per year—had now run its course.

Musk's departure follows his criticism of Trump's latest budget bill, which he labelled as 'big, beautiful' but problematic. He voiced disappointment with the legislation, citing concerns it would increase the federal deficit and undermine the work of Doge. Musk's stance signals a more independent approach, especially given his recent comments about the bill's economic impact.

What Does It Mean for Musk's Relationship with Trump?

Despite Musk's public farewell, the nature of their relationship remains complex. President Trump, speaking at the White House, confirmed that Musk's departure was expected, adding that Tesla would be 'taken care of' once Musk leaves. Trump also described Musk as 'a great patriot' and suggested that Musk was being 'treated very unfairly' by some parts of the public.

However, the official rules for SGEs complicate the picture. Musk's role in the government was limited to 130 days per year, but there are concerns about how strictly this limit is being enforced. Under federal rules, any day Musk performs work counts as a full day towards that limit. Since Musk often clocks five days a week at Doge, his official time would have run out by late May 2024, unless he scaled back his involvement.

It is important to note that, Musk has not provided clear details about his future schedule. He hinted that he might extend his time in government by reducing his days, but he also stated he would be focusing more on Tesla, especially as the company faces financial headwinds. Tesla's profits have plummeted by 71% in recent quarters, with the company warning that political sentiment and protests against Musk's political stance could hurt sales further.

Musk's departure from Doge seems definitive. His recent criticisms of Trump's policies, especially the budget bill, suggest a distancing from the White House's current agenda. Musk's comments on the bill's size and impact reveal a more sceptical stance, contrasting sharply with his earlier support.

What's Next for Musk and Doge?

The future of Doge remains uncertain. The original aim was to cut government waste by at least $2 trillion, but Musk's recent focus on his businesses suggests he's unlikely to pursue this mission with the same vigour. Officially, Musk stated he would 'do a lot less' politically and turn his attention back to Tesla and SpaceX.

Official sources say around 100 Doge employees will remain in various government departments after Musk's departure. The deadline for Doge's work is set for July, but whether Musk will be involved beyond that remains to be seen.