Elon Musk To Step Back From Government Role As Tesla Faces Financial Struggles.
Tesla CEO Elon Musk has announced his intention to step back from his role with the Trump administration’s cost-cutting initiative, the Department of Government Efficiency (DOGE), as his electric vehicle company grapples with a significant drop in earnings.
The news, which has sparked speculation about the future of both DOGE and Musk’s involvement in government, comes amid a reported 71% plunge in Tesla’s profits. The billionaire’s announcement follows weeks of global protests and boycotts targeting Tesla, some of which have turned destructive.
While White House officials, including President Donald Trump, insisted that Musk’s departure had been planned for some time, the timing has raised questions. Speaking to the BBC on Wednesday, President Trump reaffirmed that the administration had been preparing for Musk’s exit.
“We have to, at some point, let him go and do that. We expected to be doing it about this time. I’ll talk to Elon about it,” Trump said, praising Musk as “a great patriot” who had been “treated very unfairly, I guess, by some of the public.”
Under U.S. government rules, Musk has been serving as a “special government employee” (SGE), a designation that permits him to work up to 130 days a year in a paid or unpaid federal role. Though no date has been confirmed for his official departure, reducing his days at DOGE could prolong his involvement beyond May.
According to U.S. ethics guidelines, any day an SGE performs government duties counts as a full day towards the 130-day annual cap. A slower schedule could allow Musk to continue contributing to the initiative for a longer period, with the day-count resetting in January 2026.
Musk, who announced the decision on Tuesday following Tesla’s earnings report, has yet to provide further details about his future schedule or his continued involvement with DOGE.
Despite the challenges facing Tesla, President Trump assured reporters that the company would “be taken care of” upon Musk’s full return.
DOGE was established to improve government efficiency through private-sector insights, and Musk has been a key figure since its inception.
The development comes at a time of growing scrutiny over Musk’s dual role in government and business, which has fuelled controversy and calls for transparency.
