Elon Musk Exits DOGE Role: Crucial Shift After ‘Uphill Battle’

For many in the cryptocurrency community, the name DOGE immediately brings one thing to mind: Dogecoin. However, recent headlines involving Elon Musk and ‘DOGE’ refer to something entirely different – the Department of Government Efficiency. Musk has now confirmed his departure from this government role, describing his efforts as an ‘uphill battle’. This move, and his admission of spending too much time on politics, carries implications not just for government operations but also potentially for his other ventures, including Tesla, a company known for its Bitcoin holdings.

Why Elon Musk Left the Government DOGE Role

Elon Musk served as a Special Government Employee leading the Department of Government Efficiency (DOGE). This role, focused on cutting costs and improving efficiency, had a legal limit of 130 days, set to end on May 30. Musk confirmed his exit on May 29 via a post on X, expressing gratitude to President Donald Trump for the opportunity.

Musk cited the significant challenges he faced in the role. He told The Washington Post that the “federal bureaucracy situation is much worse” than anticipated. He described trying to make improvements in Washington D.C. as an “uphill battle,” indicating the difficulty of the task he undertook.

The Department of Government Efficiency (DOGE) and Its Claims

The government department, notably named DOGE, aimed to reduce federal government spending. The department claimed to have saved taxpayers $175 billion since the start of the administration. However, this figure has faced significant scrutiny from multiple news outlets, which report the numbers are likely overstated and contain errors. This claimed saving is far below Musk’s initial ambitious goal of cutting $2 trillion, which he later revised down to $150 billion.

According to reports, DOGE’s efforts included reducing the federal workforce. Nearly 12% of the 2.3 million federal employees, totaling around 260,000 positions, were reportedly cut through layoffs, buyouts, and early retirement offers.

Legal Challenges and Future of DOGE

Musk’s time leading DOGE wasn’t without controversy. A federal judge recently allowed a lawsuit against Musk and DOGE to proceed. Filed by 14 states, the lawsuit alleges that Musk and the department violated the Constitution by illegally accessing government data, terminating employees, and canceling federal contracts. Despite the criticisms and legal challenges, Musk expressed on X that DOGE’s mission would “only strengthen over time.”

Elon Musk Reflects on Time Spent in Politics

Beyond the specific DOGE role, Elon Musk admitted in an interview with Ars Technica that he had spent “a bit too much time” involved in politics. This admission comes amidst claims from some critics that his political activities have negatively impacted the performance of his companies, such as Tesla.

While acknowledging the time spent, Musk also stated that his involvement with DOGE was not as extensive as some believed, attributing the perception to media coverage. He clarified that he didn’t leave his companies but rather that the relative time allocation towards government work was higher than ideal, a situation he has since reduced.

Impact on Tesla and Future Focus

The news of Musk reducing his time on government duties seemed to be viewed positively by the market. When Musk indicated in Tesla’s first-quarter report that his time on DOGE would significantly decrease in May, Tesla (TSLA) shares rose over 5% in after-hours trading, despite the company reporting a substantial drop in net income.

Tesla still holds a significant amount of Bitcoin (BTC), valued at over $1.24 billion as of March 31. However, Tesla shares have seen a decline year-to-date, partly attributed to Musk’s attention being diverted and a considerable drop in sales in the first quarter. This decline is consistent with other major tech firms also seeing decreases in 2025.

Conclusion: A Shift in Focus After an Uphill Battle

Elon Musk’s departure from the government’s Department of Government Efficiency marks the end of his brief stint attempting to tackle federal government spending. His own words paint a picture of an ‘uphill battle’ within the bureaucracy. While the department’s claimed savings are disputed and legal challenges remain, Musk is now redirecting his focus. His admission about time spent on politics and the market’s reaction to his reduced government involvement highlight the perceived impact of his diverse commitments on his core business ventures like Tesla. As Musk steps away from DC, the focus shifts back to his leadership roles in technology and, for some, the indirect connections his name holds within the crypto space.