The White House has confirmed that Elon Musk will remain in his government-appointed role until he completes his mission of reducing federal spending and restructuring the government workforce. Recent media reports had speculated that Musk might soon leave his position, but officials clarified that he would stay until his objectives under the Department of Government Efficiency (DOGE) are fulfilled.
Musk, who was appointed by President Donald Trump to lead efforts aimed at cutting government expenses and optimizing federal operations, has been instrumental in driving large-scale reductions in workforce and restructuring federal agencies. His efforts have sparked intense public debate, lawsuits, and protests. While he has repeatedly stated his goal of achieving $1 trillion in savings, the actual impact remains a topic of discussion.
Elon Musk to stay until DOGE mission completion, confirms White House
On Wednesday, White House Press Secretary Karoline Leavitt issued a statement refuting media claims that Musk would be leaving soon. Reports from Politico and ABC News had suggested that President Trump informed his Cabinet of Musk’s potential departure before the expiration of his 130-day government appointment in late May. However, Leavitt clarified:
“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.”
Musk himself has not yet commented on the latest reports, nor has DOGE issued an official response.
Elon Musk’s role in DOGE and federal spending cuts
DOGE was created under the Trump administration to implement sweeping cost-cutting measures across the federal government. As the head of DOGE, Musk has been tasked with:
- Reducing federal workforce expenses
- Selling off non-essential government assets
- Canceling contracts deemed unnecessary
- Implementing automation and AI-driven efficiencies
- Streamlining bureaucratic processes
Since the start of Musk’s tenure, nearly 200,000 government employees have either been terminated, marked for layoffs, or accepted buyouts. While these efforts have been praised in some political circles for their focus on cost reduction, they have also triggered legal challenges and widespread protests.
As of April 2, DOGE estimates that it has saved U.S. taxpayers $140 billion, significantly below Musk’s ambitious $1 trillion goal.
Wisconsin election defeat signals backlash against Musk’s government reforms
Musk’s tenure in government has not been without political consequences. On Tuesday, a liberal judge won election to the Wisconsin Supreme Court, defeating a conservative opponent backed by Musk and his allies. The election was widely viewed as an early referendum on both Trump’s presidency and Musk’s efforts to reform the federal government.
The results raise questions about the political impact of Musk’s policies and their reception among voters. Additionally, Republican lawmakers have faced backlash at town hall meetings, where frustrated constituents have protested against the rapid government downsizing.
Market reactions and financial impact
The uncertainty surrounding Musk’s role has had a direct impact on the stock market:
- Tesla Inc. (TSLA.O) saw a significant fluctuation in its stock price. Initially down more than 6% after a sharp decline in first-quarter deliveries, Tesla’s stock rebounded 5% on Wednesday afternoon following news that Musk would remain in his government role for now.
- Government contractors saw a rise in stock prices due to speculation that Musk’s departure might result in relaxed budget cuts and contract terminations.
Despite these shifts, Musk has remained confident about achieving his cost-cutting goals. In a recent interview with Fox News’ Special Report with Bret Baier, Musk stated that he believes most of his planned $1 trillion in cuts could be achieved within his 130-day term.
However, in a separate interview on Fox Business Network’s Kudlow, when asked if he might extend his government service beyond his current term, Musk replied:
“Yeah, I think so.”
This statement has fueled further speculation about whether Musk may stay on beyond May to oversee long-term structural changes.
Challenges and controversies
While Musk’s approach has been praised for its efficiency-driven philosophy, it has also sparked significant controversy. Some of the key challenges include:
Legal disputes
Multiple lawsuits have been filed against DOGE regarding its aggressive downsizing efforts, particularly in federal agencies where employees have contested their layoffs. Some cases question the legality of unilateral job cuts without congressional approval.
Public backlash and protests
Critics argue that Musk’s cost-cutting measures disproportionately affect middle-class government employees. The growing discontent has led to protests, including vandalism at Tesla dealerships and a nationwide demonstration planned for Saturday against DOGE and the Trump administration’s policies.
Concerns over transparency
There have also been concerns over the accuracy of DOGE’s reported savings. While DOGE claims $140 billion in savings, critics point out inconsistencies and calculation errors in its public reports. The watchdog group Government Accountability Network has called for an independent audit of DOGE’s financial claims.