Tesla’s stock experienced a notable increase following rumors regarding CEO Elon Musk’s potential departure from his role at the Department of Government Efficiency (DOGE).
According to a report from Politico, which referenced anonymous sources, President Donald Trump informed his Cabinet and close aides that Musk’s exit from DOGE is imminent, suggesting that the Tesla leader will transition to a supportive role.
The White House press secretary, Karoline Leavitt, quickly dismissed the claim, labeling it as “garbage.”
“Both Elon Musk and President Trump have publicly affirmed that Musk will step away from public service as a special government employee when his outstanding work at DOGE is finalized,” she stated in a post on X.
This shift could potentially enable Musk to concentrate on his various enterprises, which include Tesla, X, SpaceX, Neuralink, xAI, and The Boring Company.
Reports suggest that this change was a mutual agreement between Musk and the president and did not arise from any discontent regarding Musk’s performance at DOGE.
As a “special government employee,” Musk has worked at DOGE, which designates a maximum of 130 working days for such roles each year.
“I anticipate that we will achieve most tasks aimed at reducing the deficit by a trillion dollars within that timeframe,” Musk stated during an interview with Finance Newso News host Bret Baier, when asked if he intended to extend his tenure.
DOGE’s Efforts to Combat Inflation: Elon Musk’s Optimism
DOGE is actively striving to lessen federal spending and enhance efficiency, targeting a spending reduction of $2 trillion. As of the latest updates on their website, the office has reported estimated savings totaling $140 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 233.29 | -6.14 | -2.56% |
The executive order signed by Trump, which initiated the cost-cutting initiative, mandates that DOGE must fulfill its objectives by early July of the following year.
“I think he’s been amazing. But I also believe he has a major company to manage,” Trump remarked on Monday regarding Musk. “So at some point, he will return to that role.”
“I’d keep him as long as possible. He is a very talented individual. I have great respect for intelligent people, and he stands out in that regard. He has done commendable work,” Trump remarked further.
DOGE Focused on Identifying Federal Waste
Earlier on Wednesday, Musk’s electric vehicle company reported its production and delivery figures for the first quarter, indicating significant activity despite protests and vandalism incidents connected to Musk’s involvement with DOGE.
Tesla announced that it delivered 336,681 vehicles in the first quarter, with production reaching 362,615—representing declines of 13% and 16% year-over-year, respectively.
