Elon Musk announced his resignation as head of the Department of Government Efficiency (DOGE), a federal body created during President Donald Trump’s second term to cut government spending and reduce the public workforce. The billionaire shared the news late Wednesday night via his social network X, thanking the president for “the opportunity to eliminate unnecessary waste” and stating that “DOGE’s mission will only grow stronger over time, becoming a way of life for government.”
The announcement came just one hour after the U.S. Court of International Trade blocked Trump’s latest tariff plan, underscoring growing tensions within the administration. Musk, who had aimed to trim $1 trillion from the federal budget, faced widespread criticism during his tenure for weakening key agencies and causing personnel shortages. According to Reuters, Musk did not inform Trump of his decision in advance. Instead, it was approved at a senior executive level. The White House confirmed the resignation, noting that the transition process would begin that night.
Musk’s departure followed his public criticism of Trump’s flagship budget bill—referred to by the president as “the big, beautiful law.” Musk, however, called it “a massive spending bill” that worsens the federal deficit and hinders the work of DOGE. “A law can be big or beautiful, but not necessarily both,” he said. His remarks are expected to bolster opposition among Republican lawmakers already critical of the legislation.
Although Musk failed to meet his original goal of cutting $1 trillion in spending, he admitted in a recent post that Washington’s bureaucracy was “worse than I imagined.” Still, the DOGE program will continue. According to the White House, the next proposed round of cuts will include $8.3 billion in foreign aid and $1.1 billion from the Corporation for Public Broadcasting.
Musk also stated he will reduce his political donations and refocus on his business ventures, including X, Tesla, and SpaceX. His decision comes amid growing pressure from Tesla shareholders, who have demanded that he recommit to the company. In a letter sent this week to Tesla’s chair, Robyn Denholm, a group of activist investors called for Musk to dedicate at least 40 hours per week to the EV manufacturer, citing falling sales, brand damage, and stock underperformance.
Tesla recently reported a 71% drop in quarterly profit and a 13% decline in year-over-year sales. The company’s stock has lost roughly 25% of its value since December, although shares have seen a modest recovery following Musk’s pledge to re-engage with Tesla leadership.
Meanwhile, The Wall Street Journal reported that Musk attempted to block a deal between OpenAI and a group of American tech firms planning to establish technology hubs in Abu Dhabi. Sources said Musk pushed to have his own AI startup included in the project. According to White House insiders, Musk was angered to learn that OpenAI CEO Sam Altman would be part of President Trump’s Middle East delegation, prompting him to join the trip himself.
