Trump Suggests Musk May End Government Role to Return to Tesla and SpaceX
U.S. President Donald Trump recently hinted that his close ally, the world’s richest man Elon Musk, may end his government role and return to running his companies full-time. Since January of last year, Musk has led the Department of Government Efficiency (DOGE), pushing for federal government reforms, implementing large-scale layoffs, and enacting several policies.
During an event at the White House, Trump stated that although Musk has performed admirably in government, he needs to return to companies like Tesla and SpaceX, especially as the core objectives of the government reform work under his leadership are nearing completion.
Musk’s Government Service Coming to an End
According to Politico, Musk serves as a “special government employee” with a 130-day term, which is expected to conclude in May. Since joining the government, Musk has spearheaded several reforms, resulting in the dismissal of a large number of government employees and the closure of agencies including the U.S. Agency for International Development (USAID) and the U.S. Institute of Peace (USIP). While these reforms have increased the operational efficiency of the federal government, they have also sparked considerable public discontent and led to a decline in Tesla’s stock price.
Musk’s Reform Plans Spark Opposition
The DOGE reform plan led by Musk has been fraught with controversy, particularly regarding layoffs and cuts in federal spending. According to publicly available data from DOGE, the reform plan has successfully eliminated over 30,000 federal government jobs, while an additional 75,000 employees opted for voluntary departure. Nevertheless, these actions have triggered strong opposition, making Musk and his company Tesla the focal point of protests.
Tesla’s Stock Price Plummets, Reflecting Pressure from Reforms
The impact of Musk’s reform plans on Tesla cannot be overlooked. By the end of 2023, Tesla’s stock price had dropped approximately 45% from its peak. Although Musk remains the world’s richest man, his personal wealth has evaporated by over $100 billion, posing significant challenges for him and his company’s future.
