Elon Musk’s Role With DOGE Has Harmed Tesla the Most. He’s Reportedly Set to Step Down Soon

After President Donald Trump’s reelection, Tesla CEO Elon Musk was viewed as the executing arm of Trump’s initiative to cut waste in federal administration. Just three months later, amid a series of controversies, Musk could step aside from his role with the Department of Government Efficiency (DOGE) to refocus on getting Tesla back on track.

Rumors. Politico reported on Wednesday that Trump had informed his close circle about Musk’s exit as head of DOGE.

Trump is reportedly pleased with Musk’s work as a “special government employee” since he became president in January. However, he is said to believe it’s a good time for Musk to return to business in hopes of alleviating the public’s pressure on the government regarding the billionaire’s role in the White House.

Clearing the way. In a recent interview with Fox News, Musk said, “I think we will have accomplished most of the work required to reduce the deficit by $1 trillion within that time frame.”

However, White House press secretary Karoline Leavitt rejected the Politico report. “Elon Musk and President Trump have both publicly stated that Elon will depart from public service as a special government employee when his incredible work at DOGE is complete,” she shared on her X account.

A political liability. Some members of Trump’s cabinet see Musk as more of a political liability than an asset. According to sources obtained by Politico, the president may use the end of the 130-day special status he granted Musk to transition him quietly out of the political spotlight.

These tensions among Republicans were highlighted by a heated discussion among several officials of Trump’s cabinet at the White House. Among them was Secretary of State Marco Rubio. According to The New York Times, Rubio criticized Musk for how DOGE cut spending in certain strategic departments.

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The last straw. Trump had purportedly hinted before about his intention to distance Musk from the political arena by the end of March. However, The New York Times reported that the Democrats’ recent win in the Wisconsin Supreme Court elections could serve as conclusive evidence that Republicans see Musk as sidelined. Musk invested around $25 million in the Wisconsin race.

Despite the rumors, Politico’s sources suggest that Musk will continue working as an informal advisor and may occasionally be seen in White House offices. However, some experts caution that it would be naive to think Musk will completely remove himself from Trump’s sphere of influence.

A radical shift. In addition to the political tensions with Republicans, Musk’s role with DOGE is causing Tesla a growing reputational crisis. Moreover, Trump’s purported move reveals a new dynamic between the two.

Trump recently said that Musk was a permanent figure in the political landscape. However, he’s now reportedly orchestrating a quiet and discreet transition to keep Musk away from power. “At some point, Elon’s gonna want to go back to his company. He wants to. I’d keep him as long as I could keep him,” Trump told reporters on Monday, according to Politico.

Crisis at Tesla. Musk’s departure from the political spotlight may help stabilize Tesla. The CEO’s political involvement has led to protests and attacks on the brand’s dealerships and vehicles. A Morgan Stanley survey revealed that 85% of Tesla investors believe Musk’s political actions are damaging the company’s reputation.

Protests haven’t been limited to local areas. The brand’s sales have dropped significantly worldwide, causing share value to decline. As a result, Tesla has lost all the gains it enjoyed following Trump’s reelection.

Image | Gage Skidmore

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