Elon Musk has officially stepped down from his role in the Department of Government Efficiency (DOGE), wrapping up his time as a Special Government Employee. In a post on Twitter/X, the South African publicly thanked President Trump for the opportunity to “reduce wasteful spending”.
According to the post, DOGE will continue operations in the government. Musk claimed that the unofficial Government department will keep pushing forward with its mission to reduce wasteful spending and streamline government operations.
How Much Did DOGE Save?
DOGE claims to have saved around $175 billion by cutting inefficiencies, trimming federal contracts, and downsizing agencies. Musk had originally set a $1 trillion savings goal, but the final number fell short of that target, at least so far. At this rate, it would take about 2 years and 5 months to hit the $1 trillion target—assuming no slowdowns or shifts in government spending priorities.
Controversial Budget Cuts
The deparment faced its fair share of controversy, as critics argued that slashing funds of what many considered essential areas was doing more harm than good. Among the most criticized cuts are:
- Consumer Financial Protection Bureau (CFPB) Cuts – The CFPB, which oversees consumer protection laws and investigates financial fraud, faced a 70% budget reduction under DOGE.
- Pediatric Cancer Research Funding Slashed – The National Institutes of Health (NIH) saw a 35% budget cut, impacting biomedical research, including pediatric cancer studies.
Supporters of DOGE argue that while the cuts were controversial, they were necessary to rein in excessive government spending and eliminate inefficiencies. The Deparment claims that many federal programs had bloated budgets, and cutting part of these funds was necessary to control American debt.
How It Affected Tesla
The mix of politics and public backlash ultimately affected Musk’s electric vehicle manufacture Tesla. The company was victim to boycotts and protests due to Musk’s role in government layoffs and budget cuts.
Musk’s government involvement had a ripple effect on Tesla. The EV giant saw a 18% drop in stock value (TSLA), since Trump took office, down by over 26% from its ATH. Even Tesla stock holders were in favor of Musk stepping down. Notably, long time Tesla investor Ross Gerber has been one of the most vocal critics of Musk’s political involvement, arguing that it has damaged Tesla’s brand and distracted from its core business.
Overall, it seems like Musk stepping down from the Government could be a strategic move to refocus on Tesla and his other ventures. While his role in DOGE brought major cost-cutting achievements, some argue that returning his full attention to Tesla could help rebuild investor confidence and strengthen Tesla’s market position.
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