Elon Musk to Exit DOGE Role in May, Prompting Tesla Stock Surge​

Elon Musk announced during Tesla’s latest earnings call that he is preparing to step back from his work with the Department of Government Efficiency (DOGE) starting in May

ContentsDOGE’s controversial government cutsTesla struggles amid political backlashMusk’s federal role nears legal limitThe announcement led to a sharp 5% rise in Tesla’s stock during after-hours trading, offering investors a sign of renewed focus on the electric carmaker after a challenging financial quarter.

Musk confirmed that his role in the Trump administration will be significantly reduced by next month. Although he plans to continue offering limited assistance, he emphasized that his full-time attention will shift back toward Tesla’s operations. The update followed Tesla’s report of a 20% drop in automotive revenue and a 71% fall in net income for the first quarter of 2025.

DOGE’s controversial government cuts

Created after Musk contributed close to $300 million to Donald Trump’s 2024 campaign, DOGE was positioned as a government efficiency effort. Since its launch, DOGE has targeted a broad range of federal agencies, including the IRS, National Park Service, and the Department of Education. It also reduced staff at agencies that regulate Musk’s companies, such as the SEC, FAA, and NHTSA.

Critics argue DOGE’s methods have been aggressive and lacked transparency. In February, reports emerged that DOGE operatives physically removed Education Department officials from their offices and altered workspaces without warning. Concerns also grew after senators revealed that DOGE may have accessed sensitive student loan data.

DOGE’s website claims it has saved the government $160 billion, but the figure has come under scrutiny. Some of the savings estimates were later removed from the site, raising questions about accuracy and oversight.

Tesla struggles amid political backlash

Tesla is facing mounting challenges beyond financial results. The company continues to deal with public protests across Europe and the United States. Musk blamed “organized protest groups” and accused some demonstrators of benefiting from government waste, though he provided no evidence.

Public sentiment toward Tesla brands weakened primarily in foreign markets because Musk links his name to German far-right political groups, including the AfD party. Slow innovation in their product lineups, growing Chinese electric car market competition, and stock value decreases by 41% represent the main reasons for Tesla’s stock market performance in 2025.

Musk’s federal role nears legal limit

Musk’s federal employment is nearing its legal cap. As a “special government employee,” he can serve up to 130 days per year without facing stricter ethics rules. That limit will be reached by the end of May. Musk’s official role in Washington may end without a new appointment, allowing him to focus more fully on Tesla’s future.