Elon Musk is putting his stint in Washington in the rearview mirror. The Tesla (TSLA-3.33%) CEO tweeted Wednesday night that his time as a special government employee leading the Department of Government Efficiency (DOGE) has come to an end.
“I would like to thank President @realDonaldTrump for the opportunity to reduce wasteful spending,” Musk posted. “The @DOGE mission will only strengthen over time as it becomes a way of life throughout the government.
Musk’s departure was long expected. Under federal law, “special government employees,” as Musk is designated, are limited to working 130 days during any 365-day period. But his exit also comes on the heels of his criticism of President Donald Trump’s domestic policy push: A “big, beautiful” tax bill that Musk said was antithetical to DOGE’s mission of slashing bureaucracy and cutting federal spending.
Tesla stock rose 2.4% in Thursday morning trading following the announcement.
Wedbush Securities analysts led by Dan Ives wrote in a Thursday note that Musk’s departure from the administration is “music to the ears of Tesla shareholders with Musk now laser focused on Tesla and the autonomous vision ahead.”
During Musk’s time leading DOGE, Tesla experienced a significant decline in profits, reputation, and market share. The company’s profits fell 71% year-over-year in the first quarter, while market share slipped amid rising EV competition, especially from China’s BYD (BYDDY-1.47%).
This downturn led to intensified pressure from shareholders for Musk to commit to Tesla full time. On Wednesday, a group of top shareholders urged the board to require Musk to spend at least 40 hours a week on Tesla business.
Recent reports suggesting Tesla might consider a leadership transition were denied by the company — but one analyst described the potential move to oust Musk as a “warning shot.” Instead, Tesla is said to be negotiating a pay package that would lock Musk in. Musk has said he’ll still be leading his auto company in five years — “unless I die.”
Musk confirmed his reduced government role in Tesla’s first-quarter earnings call, saying his time with DOGE would “drop significantly” even as he hinted at continued informal ties with the Trump administration.
Trump, for his part, has expressed admiration for Musk while also signaling the limits of their working relationship. In March, the president called Musk “amazing” but said the Tesla CEO has “a big company to run.” Trump added that Musk would be back “at some point.”
“I’d keep him as long as I can keep him,” Trump said. “He’s a very talented guy. You know, I love very smart people. He’s very smart. And he’s done a good job.”
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