President Donald Trump has told his Cabinet and close advisers that Elon Musk is stepping down from his government role. According to Politico, the Tesla and SpaceX CEO is set to return to the business sector sooner than expected, a decision that unsettled the stock market and sent ripples through Washington.
Originally designated as a special government employee with a planned departure in May, Musk will now be leaving much ahead of schedule amid growing controversy. White House officials said that the decision was taken jointly by both men, with Trump more than happy with Musk’s contributions to the Department of Government Efficiency (DOGE) over the past couple of months.
Musk Leaving DOGE
X
Musk has emerged as a controversial figure for his aggressive approach to downsizing the federal government. He also recently invested $20 million in Wisconsin’s Supreme Court race, only for his Republican-backed candidate to lose.
Meanwhile, Tesla’s stock has taken a massive hit amid declining sales, and several sales lots have even been set on fire.

X
However, news of Musk returning to focus on his businesses caused shares of his companies to surge. He initially built his fortune through a range of corporate ventures.
However, White House press secretary Karoline Leavitt dismissed the report, saying that Musk was never planned to hold a long-term position within the administration. “This ‘scoop’ is garbage,” she wrote on X.
“Elon Musk and President Trump have both *publicly* stated that Elon will depart from public service as a special government employee when his incredible work at DOGE is complete.”
Trump got Musk into the administration to bring his business expertise to the federal government. However, the decision sparked immediate controversy, with critics questioning whether Musk, whose company SpaceX holds billions in government contracts, had a conflict of interest.

Musk’s aggressive efforts to downsize the federal government led to widespread layoffs and legal battles against the Trump administration. His unpredictability also became a concern.
Over time, Musk began to be viewed as a political liability. In Wisconsin, the Democratic candidate framed the election as “The People vs. Elon Musk,” a strategy that contributed to their win.
Despite this, Trump publicly stood by Musk, ensuring his visibility by bringing him into the Oval Office, walking alongside him to Marine One, and even hosting him on Air Force One. At one point, Trump even transformed the White House South Lawn into a Tesla showroom after the company’s stock took a hit, personally writing a check for one of the vehicles.
A Lot at Stake
Privately, however, Trump reassured his Cabinet that they remained in control of their respective departments, not Musk. Musk was present during a Cabinet meeting when Trump made the announcement.

There were also murmurs of friction between Musk and Chief of Staff Susie Wiles. Reports suggested Musk often bypassed the White House chain of command, failing to keep Wiles informed as protocol required.
His habit of making unfiltered remarks on X—including sharing unapproved and unverified plans to overhaul federal agencies—created public relations headaches for the administration.
Adding to the controversy was a gesture he made that many likened to a Nazi salute, as well as ongoing personal drama involving both the mother of his children and one of his transgender kids.
Musk’s status as a “special government employee” limits his role to 130 days, a designation that also exempts him from certain ethics and conflict-of-interest regulations. Many speculated that Trump might try to circumvent this restriction.
With the 130-day period set to expire by late May or early June, it seems Trump is prepared to part ways with the billionaire who spent $200 million on his election.
However, few believe Musk will completely fade from Trump’s circle.

X
A White House aide told Politico that anyone expecting Musk to vanish from Trump’s orbit is “fooling themselves.” The Tesla CEO is expected to maintain direct access to Trump, with an open-door policy at the Oval Office.
He will also likely continue to frequent Mar-a-Lago, where he and Trump are known to dine together. Musk has established himself as a dominant figure within the Republican Party, leveraging his immense wealth to become a major political player.
However, Democrats are likely to cast him as a villain—similar to how Republicans targeted Nancy Pelosi—as they gear up for the crucial midterm elections that will determine control of Congress.