Elon Musk May Soon Leave DOGE, Trump Hints at Exit

Elon Musk’s time in the White House could soon be coming to an end. President Donald Trump has reportedly told members of his inner circle that Musk will be stepping back “in the coming weeks” from his role at the Department of Government Efficiency (DOGE) as a special government employee, according to Politico.

The report says both Trump and Musk agreed that the time is near for Elon Musk to return his focus to Tesla, which has seen its stock drop more than 25 percent this year. (News of Musk’s possible return as a full-time CEO sent the stock up 5 percent in midday trading Wednesday.)

Why Is Musk Leaving?

Musk’s departure from DOGE would mark a significant shift from earlier plans. Just in early March, Trump and his team were exploring ways to extend Musk’s role beyond the mandated 130-day time limit that applies to special government employees. That time limit is set to expire in late May or early June, and Politico reports that Musk’s transition away from the White House is likely to align with that timeline.

Musk’s Political Influence Is Fading

Another factor that may be playing into Musk’s exit is his waning political influence. Democrats won a crucial Wisconsin Supreme Court race on Tuesday, despite Musk contributing heavily to the Republican candidate—an estimated $25 million—while also handing out $1 million checks to voters and making numerous social media posts about the election. Just days ago, he tweeted, “This Wisconsin Supreme Court race might decide the future of America and Western Civilization!” Despite his efforts, the outcome did not go in his favor, raising questions about his political sway.

His declining approval among voters also appears to be a problem. Poll numbers suggest that his aggressive cost-cutting methods at DOGE have made him unpopular with both government employees and the general public. Protests have erupted across the country, targeting both government offices and Tesla dealerships, which have faced vandalism in recent months.

What Happens Next?

Even if Elon Musk steps away from his day-to-day duties at the White House, he is expected to retain significant political influence. Insiders believe he will continue to serve as an informal advisor to Trump and remain one of the biggest financial backers of the Republican Party.

The White House has not commented on Musk’s reported exit, but during an executive order signing ceremony yesterday, Trump said of Elon Musk, “I think he’s amazing, but I also think he’s got a big company to run, and so at some point he’s going to be going back. He wants to.”

Tesla’s Troubles

Musk’s time in Washington has not been kind to Tesla. The longer he has stayed in the White House and made controversial comments, the more the company has suffered. Tesla showrooms have been a focal point of government protests, and some have even been vandalized. A doxing website recently surfaced, claiming to expose the locations of Tesla owners, dealerships, and Superchargers, as well as personal information about members of the DOGE team.

Tesla announced on Wednesday that it delivered just 337,000 vehicles in the first quarter, significantly below analyst expectations and representing a 13 percent decline compared to the same period last year. Wedbush analyst Dan Ives called it a “disaster,” warning that Musk’s involvement in politics is damaging the Tesla brand.

“The time has come for Musk,” Ives wrote in a note to investors. “It’s a fork in the road moment. The more political he gets with DOGE, the more the brand suffers. There is no debate. This quarter was an example of the damage Musk is causing Tesla. … Musk needs to get his act together, or else, unfortunately, darker times are ahead for Tesla.”

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Will Musk’s Return Save Tesla?

While Musk’s return to Tesla might improve investor confidence, it won’t solve all the company’s problems. The brand has taken a hit due to Musk’s political entanglements, and some investors are concerned about long-term damage. For instance, Bud Light has still not fully recovered from a consumer boycott it faced two years ago, and some wonder if Tesla could face a similar long-term decline.

Additionally, Tesla no longer benefits from the same tailwinds it once did. Government subsidies for electric vehicle buyers have dwindled, and the White House is no longer pushing people to buy EVs. As a result, Tesla faces a much tougher market environment than it did in previous years.

What’s Next for DOGE?

Musk’s exit also raises questions about the future of DOGE. When Elon Musk first took over the department, his primary mission was to cut $1 trillion in federal spending. He implemented aggressive budget reductions across multiple agencies, but those cuts have faced pushback. The protests and backlash against DOGE suggest that his cost-cutting measures have been deeply unpopular.

With Musk’s departure, there is speculation that Trump may dissolve the department altogether before its planned end date of July 4, 2026. Reports suggest that many DOGE employees are already being reassigned to other federal agencies, and layoffs have begun as part of the administration’s broader cost-cutting initiatives.

Elon Musk’s potential departure from DOGE marks the end of a controversial chapter in his career. While his time in government was short, it had a significant impact on both politics and business. His return to Tesla may help stabilize the company, but the damage done to the brand could take time to repair. Meanwhile, his political ambitions remain an open question. Whether he continues to be a major player in Republican politics or distances himself from Washington, one thing is clear: Musk’s influence—both in business and in government—is far from over.