Amid mounting backlash against his electric vehicle company, Tesla, billionaire entrepreneur Elon Musk has hinted at stepping down from his role at the U.S. Department of Government Efficiency (DOGE) by late May this year. Musk, who has been serving as a special government employee (SGE), has reportedly played a crucial role in spearheading cost-cutting measures within federal agencies. However, his tenure has not been without controversy, as his policies have sparked both praise and criticism across political and economic circles.
Musk’s role within the department has been limited by law, as SGEs can only work a maximum of 130 days within any given 365-day period. Appointed as a special advisor to then-President Donald Trump, Musk took on the ambitious task of reducing government spending, an initiative that has drawn both acclaim from fiscal conservatives and sharp criticism from those concerned about its impact on essential public services.
In a recent interview with Fox News, Musk detailed the progress his team has made, claiming that they had managed to cut down wasteful government spending by an average of "USD 4 billion a day." He asserted that the team was on track to reduce the federal deficit by at least one trillion dollars within the allotted 130-day period. "I think we will accomplish most of the work required to reduce the deficit by a trillion dollars within that timeframe," Musk stated confidently.
Despite these claims, the program’s aggressive budget cuts have been met with fierce opposition, leading to protests in several states and multiple legal challenges. Critics argue that the measures have been rushed and poorly executed, potentially harming social welfare programs, infrastructure projects, and public sector jobs. Defending his team’s approach, Musk dismissed accusations of recklessness, stating, "They may characterize it as shooting from the hip, but it is anything but that. Which is not to say that we don’t make mistakes. But overall, we are making significant improvements in the way the government operates."
The DOGE team, consisting of Musk and seven senior advisors—Aram Moghaddassi, Steve Davis, Brad Smith, Anthony Armstrong, Joe Gebbia, Tom Krause, and Tyler Hassen—has been focused on identifying inefficiencies within federal agencies. Their approach has involved drastic workforce reductions, selling off government assets deemed unnecessary, and terminating redundant or outdated contracts. According to department estimates, these efforts have saved U.S. taxpayers approximately USD 115 billion as of March 24.
"The government is not efficient, and there is a lot of waste and fraud," Musk said, defending the sweeping cuts. He emphasized that a "15 percent reduction" in federal spending could be achieved without jeopardizing essential services or national security. However, opposition groups, including labor unions and advocacy organizations, argue that the measures have disproportionately affected lower-income Americans, reduced access to key social services, and put thousands of government employees out of work.
Musk, however, remains steadfast in his belief that his work at DOGE has set the country on a path toward financial stability. "America will be solvent. The critical programs that people depend upon will work, and it's going to be a fantastic future. And are we going to get a lot of complaints along the way? Absolutely," he remarked.
His announcement about stepping down from DOGE comes at a time of significant turmoil for Tesla, the company that has been his primary focus for years. The EV giant has faced nationwide protests, stock declines, and reports of vandalism targeting company facilities, further complicating Musk's already packed schedule. Last Monday, Tesla’s stock plummeted by over 5 percent, raising concerns about the company’s stability.
Last Thursday, Musk addressed Tesla employees at the company’s headquarters in Austin, Texas, and acknowledged that the current situation had been overwhelming. "I'm stretched pretty thin. I have like 17 jobs," he admitted, alluding to his roles not only at Tesla and DOGE but also at SpaceX, Neuralink, and The Boring Company. He described the media coverage of recent attacks on Tesla as feeling like "Armageddon," but he sought to reassure employees about the company’s long-term vision. "The future is incredibly bright and exciting, and we're going to do things that no one, I think, has even dreamed of," he said optimistically.
Beyond Tesla’s troubles, Musk and the DOGE department are also facing multiple lawsuits, including claims that the department operated without proper legal authority and violated privacy laws in its cost-cutting efforts. Some legal experts argue that the department’s approach to government restructuring was too aggressive and lacked sufficient oversight, while others view it as a necessary shake-up of an outdated system.
Despite these ongoing challenges, Musk remains one of the most influential and polarizing figures in both the business and political worlds. Whether he will continue playing an active role in government efficiency initiatives beyond May remains to be seen, but his impact—both celebrated and criticized—has already left an indelible mark on U.S. fiscal policy.
