Elon Musk, the Chief Executive Officer (CEO) of Tesla, who leads the Department of Government Efficiency (DOGE), is reportedly set to leave DOGE soon. While DOGE is expected to remain an independent body in Musk's absence, its focus is anticipated to shift from workforce reduction to regulatory repeal.
According to reports from the Wall Street Journal (WSJ) and the Financial Times (FT) on the 24th, Musk announced during a recent earnings call that starting in May, he would only dedicate one to two days a week to DOGE operations, focusing the rest of his time on managing the company.
Reports indicate that since its inception, DOGE has executed workforce reductions across nearly all federal government agencies and has gained control over major administrative systems. DOGE has often unilaterally implemented budget cuts without particular warnings to agencies, claiming to reduce wasteful expenditure.
However, DOGE is struggling to achieve its budget reduction targets. According to WSJ, Musk has stated plans to cut the federal budget by $1 trillion, contrasting with his earlier claim of $2 trillion during the presidential campaign, and WSJ analyzed that federal expenditure has actually increased compared to the previous year since President Trump took office.
Musk has also caused political conflicts. He publicly criticized high-ranking administration officials such as Secretary of State Marco Rubio, White House advisor Peter Navarro, and Secretary of Transportation Sean Duffy as "incompetent" during meetings or on social media (SNS). He has also sidelined White House personnel from major decision-making processes with his impromptu statements and policy decisions. The Washington Post (WP) noted that "political figures have always had to work hard to explain Musk's remarks or decisions."
Due to such unilateral actions, Musk has faced backlash from cabinet officials and Republican lawmakers. Recently, reports emerged that he had a loud argument with Acting Treasury Secretary Scott Bessent over the appointment issue at the White House.
Meanwhile, Musk's political standing has been jeopardized after a candidate for the Wisconsin Supreme Court, whom he supported, suffered a humiliating defeat in the elections earlier this month. Recently, signs indicating that Musk's influence within the White House has weakened compared to before have also been observed.
While he has been busy with political activities, Tesla's first-quarter net profit dropped 71% compared to the previous year, leading to assessments that Musk has faltered in both his main and side projects. According to a CNBC poll, 52% of respondents rated Musk negatively, and conservative media outlets including Fox News have remarked that he is becoming a "political burden" for President Trump.
According to WSJ, even if Musk resigns, DOGE is expected to continue as an organization with structural independence through executive orders. However, it is highly likely that DOGE's work will shift focus from workforce reduction to regulatory repeal. Agencies have reportedly been instructed to report regulations deemed unconstitutional or excessively expensive compared to the public interest.
It has not yet been decided who will succeed the leadership position at DOGE. However, one alternative being mentioned is Steve Davis. He has been a long-time associate of Musk and has worked alongside him at SpaceX and the boring company, leading key tasks within DOGE. However, it is said that he may also return to the company following Musk.