Musk Exits DOGE After Political Backlash and Legal Heat

Elon Musk has resigned as head of the Department of Government Efficiency (DOGE), a United States federal program focused on reducing government spending and cutting waste. 

Having served as a Special Government Employee, Musk cited political resistance and time constraints as reasons for stepping down upon the completion of his term. 

In an April 2025 Tesla earnings call, he stated the need to prioritize his companies, most especially Tesla, following declining sales and stock performance.

Following the announcement of his resignation, Tesla’s stock surged 2.15% during after-hours trading to $364.59, a sign of renewed investor optimism about Musk’s decision to focus more on his companies. It has since fallen to $356.90, a 1.65% decline from the previous close of $362.89, though shares remain 25.6% below a December 2024 peak of $479.86, driven by a 13% Q1 2025 sales drop and competition.

Tesla Stock Price (Source: Google Finance)

The company’s stock is still 5.9% down year-to-date, a result of Musk’s divided attention between his companies and political role.

DOGE’s target was to cut down 216,000 to 260,000 jobs, representing 12% of the 2.3 million federal workforce, and claimed $160 billion in savings.

President Trump plans to retain Musk as an advisor, maintaining his influence.

Musk’s DOGE Tenure Faces Legal and Political Backlash  

Musk’s time at DOGE was the target of fierce political outrage. Lawsuits filed by unions and state attorneys general alleged that Musk had engaged in illegal data access and wrongful contract cancellations. 

A Senate report accused Musk of using the department to evade $2.37 billion in liabilities for his companies, raising conflict-of-interest concerns as well. 

Following his resignation, the department’s 21 staff members who worked with Musk also resigned due to concerns over the program’s legality, a sign of internal disagreement.

Trump’s Plan to Preserve DOGE’s Influence

Trump’s decision to keep Musk as an advisor shows the important role the DOGE program is playing in his administration. His exit comes at a time Tesla is dealing with setbacks and legal issues over DOGE’s actions, including lawsuits questioning its authority.

Musk reaffirmed that DOGE’s mission would go on, focusing on reducing government waste. Democratic lawmakers have criticized Musk’s corporate ties due to his companies’ government contracts. 

With strong backing and support from the Republican, DOGE remains central to Trump’s agenda, even though its implementation faces ongoing resistance and pushback.