Washington: Elon Musk is set to step down from his role in Donald Trump’s administration, where he has been leading efforts to slash government spending and restructure federal agencies. According to a Politico report, Trump has informed his Cabinet and close allies that Musk will soon leave his government post to return to his businesses.
Musk, who took on the role as a special government employee, was tasked with cutting $1 trillion in federal spending. His 130-day term was expected to last until late May, but recent reports indicate he may leave sooner.
Why is Musk Leaving?
While both Musk and Trump have expressed confidence in the work accomplished, they agree it’s time for Musk to shift his focus back to Tesla, SpaceX, and other ventures. Trump recently told reporters:
“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.”
Musk himself hinted at his departure during a Fox News interview, stating he was optimistic about completing his work within the short-term assignment.
Market Reaction & What’s Next
Following the news, Tesla’s stock, which had initially fallen due to lower-than-expected first-quarter deliveries, reversed losses and climbed 3%. Meanwhile, stocks of government contractors rose, anticipating shifts in federal contracts after Musk’s exit.
Neither the White House nor Musk’s task force have confirmed the timeline, but sources suggest the transition could happen in the coming weeks.
As Musk prepares to step away, questions remain: Will Trump find another tech leader to take over, or will this mark the end of his aggressive cost-cutting reforms?
Stay tuned for updates