Elon Musk resigns from Trump government amid mounting business challenges

Billionaire entrepreneur Elon Musk has officially stepped down from his role as a Special Government Employee (SGE), a position he held during the Trump administration to support the Department of Government Efficiency (DOGE) initiative. The resignation comes amid intensifying scrutiny over Musk's business empire and growing public protests related to his leadership.

In a statement posted on X, Musk confirmed the end of his tenure, expressing gratitude to former President Donald Trump. “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. The DOGE mission will only strengthen over time as it becomes a way of life throughout the government,” he wrote.

Launched under the Trump administration, the DOGE initiative was designed to streamline federal operations and curb wasteful expenditure. Musk, a high-profile appointment from the tech sector, had become the face of the project. His departure marks a significant transition for the initiative, although officials state the program will continue under existing agency personnel.

Musk’s exit aligns with his return to full-time executive responsibilities amid a wave of turbulence across his business ventures. Speaking to CNN earlier this week, he revealed he was back to “spending 24/7 at work” and sleeping in office conference rooms, as he attempts to stabilize Tesla, X (formerly Twitter), SpaceX, and his AI startup, xAI.

Tesla is currently battling declining vehicle sales and skepticism surrounding the Cybertruck. X has faced backlash following a major service outage and controversy over Grok, xAI's chatbot, which was criticized for spreading conspiracy theories. In parallel, SpaceX's Starship rocket recently failed during a test flight, disintegrating over the Indian Ocean shortly after launch.

Despite these setbacks, investor sentiment has shown signs of improvement. Tesla shares have surged by 25% over the past month, though they remain well below their peak levels seen in December. Much of this optimism hinges on Musk's ability to deliver on long-awaited promises, including the upcoming debut of an autonomous robotaxi fleet in Austin, Texas.

Musk also voiced disapproval of a recent federal spending bill proposed by Trump, criticizing it for expanding the budget deficit. In a video message released Tuesday, he said, “I was disappointed to see the massive spending bill, frankly, which increases the budget deficit, not just decreases it, and undermines the work that the DOGE team is doing. I think a bill can be big or it can be beautiful, but I don’t know if it can be both.”

As Musk retreats from his federal duties, the DOGE initiative is expected to continue without its most prominent figure. Embedded teams will remain active across federal departments, carrying forward efforts to enhance efficiency in government operations.