Musk to soon step down from DOGE leadership, says Trump
What's the story
US President Donald Trump has told his Cabinet and close aides that Elon Musk, the Tesla and SpaceX CEO, will soon step back from his government role.
The news was first reported by Politico. Musk was appointed as a special government employee with the task of leading efforts to reduce government funding and dismantle various US agencies.
The timeline for this transition remains undisclosed.
Market impact
Musk's departure triggers stock market response
After Musk's imminent government exit was announced, shares of several companies, including government contractors, surged.
Tesla shares, in particular, bounced back by 3% after falling by 2% on an unexpected first-quarter deliveries drop.
This market reaction highlights the extent to which high-profile personalities like Musk impact investor sentiment and company performance.
Trump's statement
Trump acknowledges Musk's need to return
When asked if he wanted Musk to extend his term beyond the initial 130-day period, Trump said, "I think he's amazing, but I also think he's got a big company to run. At some point, he's going to be going back. He wants to."
Going by this 130-day term, Musk's tenure as a special government employee would end by the end of May.
Task completion
Musk confident about completing federal spending cuts
In a recent interview with Fox News, Musk had expressed confidence in completing most of the work to cut federal spending by $1 trillion by the end of his term.
His exit from government service, however, doesn't mean an end to the efforts.
The cost-cutting team's mandate, under an executive order signed by Trump in January, will continue until July 4, 2026.
Official response
White House Press Secretary refutes report
White House Press Secretary Karoline Leavitt dismissed Politico's report as "garbage."
She clarified that both Musk and Trump have publicly stated that Musk will leave public service when his work at DOGE (Department of Government Efficiency) is complete.
Despite the controversy surrounding his role, a senior administration official suggested that Musk is expected to maintain an informal advisory role and occasionally appear at the White House after his departure.