Elon Musk Steps Down From Trump’s Cost-Cutting DOGE Agency Amid Frustration Over Federal Spending

Elon Musk, the billionaire CEO of Tesla and SpaceX, has officially stepped down from his advisory role in former President Donald Trump’s administration, ending his tenure as the head of the Department of Government Efficiency (DOGE) after just five months. In a post shared Thursday night on his social media platform X, Musk announced the conclusion of his stint as a Special Government Employee, signalling a retreat from Washington politics to refocus on his businesses.

“As my scheduled time as a Special Government Employee comes to an end, I would like to thank President Donald Trump for the opportunity to reduce wasteful spending,” Musk wrote. “The DOGE mission will only strengthen over time as it becomes a way of life throughout the government.”

The DOGE agency was formed on Trump’s first day back in office this year through an executive order aimed at slashing federal spending, streamlining operations, and overhauling government waste. Musk, known for his maverick style and entrepreneurial acumen, was seen as a bold—if controversial—choice to lead the effort. But despite high expectations, his tenure proved to be anything but smooth.

Musk Clashes with Trump’s Agenda

Musk’s resignation came shortly after he publicly criticised Trump’s legislative priorities. In an excerpt from a CBS interview released earlier this week, the South Africa-born entrepreneur expressed “disappointment” in Trump’s much-touted “Big Beautiful Bill,” which combines sweeping tax reforms with strict immigration enforcement measures.

“I think a bill can be big or it could be beautiful,” Musk said during the interview. “But I don’t know if it could be both.”

He went on to describe the legislation as “a massive spending bill” that significantly increases the federal deficit—an outcome Musk argued directly contradicted the goals of the Department of Government Efficiency. This public rebuke reportedly blindsided some within Trump’s circle and may have hastened Musk’s exit.

Falling Short of Lofty Goals

Musk's time at DOGE began with grand ambitions. He initially aimed to eliminate $2 trillion (€1.78 trillion) in what he called “bloated and inefficient government operations.” However, the reality of Washington’s entrenched bureaucracy quickly tempered his expectations. Over time, Musk was forced to revise his goals downward—first to $1 trillion (€889 billion), and later to just $150 billion (€133 billion).

Much of the spending reduction plan hinged on massive layoffs, the consolidation of federal agencies, and the shutdown of several departments deemed redundant. While Musk managed to implement some changes, the resistance from career bureaucrats, political opposition, and logistical barriers left much of his vision unrealised.

In addition, internal conflicts plagued DOGE’s operations. Musk reportedly clashed with several high-profile members of the Trump administration who saw his aggressive cost-cutting proposals as disruptive and politically damaging. The pushback, combined with mounting lawsuits and public criticism, made Musk’s Washington stint a high-stress chapter in his otherwise formidable career.

From MAGA Ally to Disenchanted Outsider

Initially one of Trump’s loudest and most visible allies, Musk played an outsized role in supporting the former president’s return to power. He contributed at least $250 million (€222 million) to Trump’s campaign and was often seen at MAGA rallies wearing the signature red hat. In February, Musk declared, “The more I’ve gotten to know President Trump, the more I like the guy. Frankly, I love him.”

But in recent weeks, Musk has grown increasingly candid about his frustrations with government inefficiency and political gridlock. “The federal bureaucracy situation is much worse than I realised,” Musk said in a recent interview. “It’s an uphill battle trying to improve things in DC, to say the least.”

His announcement to step back from politics comes on the heels of a broader strategic retreat. Last week, Musk revealed he plans to scale down his political donations, indicating a desire to reorient his focus toward Tesla, SpaceX, Neuralink, and X.

What’s Next for DOGE and Musk?

The future of the Department of Government Efficiency is uncertain without Musk at the helm. Though his departure was anticipated, his larger-than-life persona and public visibility had given the fledgling agency a unique profile. Whether it can continue its mission with the same intensity—or whether it will quietly fade into the background—remains to be seen.

As for Musk, he appears eager to return to the private sector where he’s long been hailed as a visionary. Yet, his brief detour into government may leave lasting implications—not just for federal spending, but for how Silicon Valley engages with politics moving forward.

“The DOGE mission will continue,” Musk said on X, “but my time in DC has ended. Back to rockets, robots, and electric cars.”

Market Boost in US and Asia-Pacific Amid Trade and Rate Policy Shifts

Markets surged across the US and Asia-Pacific on Thursday as investor sentiment improved. Futures for the S&P 500 rose 1.6%, while the Dow Jones futures climbed 1.2%.

In Asia, Japan’s Nikkei 225 jumped 1.5% to 38,263.36, with momentum fuelled by hopes that tariffs on Japanese imports—imposed by the Trump administration—may be reconsidered. The dollar also strengthened sharply against the yen, reaching 146.06 from 144.87.

Australia’s S&P/ASX 200 edged up 0.3% to 8,418.90, while South Korea’s Kospi surged 1.4% to 2,707.77 following a rate cut by the Bank of Korea, lowering the key interest rate to 2.5% to support economic growth.

In the US, stocks had cooled slightly on Wednesday ahead of Nvidia’s highly anticipated earnings report. The S&P 500 slipped 0.6%, the Dow lost 0.6%, and the Nasdaq fell 0.5%. However, Nvidia stock surged 4.9% in after-hours trading after beating expectations.

Retailers also reported strong earnings, with Abercrombie & Fitch soaring 14.7% and Dick’s Sporting Goods gaining 1.7%.

The 10-year US Treasury yield rose to 4.47%, and crude oil prices climbed—WTI at $62.44 and Brent at $64.88. Meanwhile, the euro slipped to $1.1239.

Conclusion

Elon Musk’s departure from the Trump administration’s cost-cutting DOGE agency marks the end of a tumultuous political experiment. While his tenure was short and marred by internal conflicts and scaled-down ambitions, Musk’s influence stirred debate about government efficiency, spending, and the role of private sector leaders in public service. His exit now clears the way for DOGE’s next chapter—though whether it can succeed without its most high-profile champion remains to be seen.