Egypt Daily News – After leading a controversial campaign alongside U.S. President Donald Trump that sparked widespread anger due to efforts to shrink the government, billionaire Elon Musk announced just hours ago that he is leaving the U.S. administration.
In a post on his social media platform X, Musk thanked the U.S. president for the opportunity to help run the Department of Government Efficiency, known as “DOGE.” According to sources, the White House began “phasing out” Musk’s duties as a special government employee last Wednesday. They noted that his departure was expected and came a day after Musk criticized part of Trump’s legislative agenda.
The South African-born tech mogul had been appointed as a “special government employee,” a designation that allowed him to work in a federal position for up to 130 days per year.
Musk’s departure followed his statement expressing “disappointment” with Trump’s proposed budget bill, which suggested multi-trillion-dollar tax cuts and increased defense spending.
The head of SpaceX and Tesla, who clashed with some officials in the Trump administration, had initially pledged to cut “at least $2 trillion” from the federal budget, but later reduced that figure to half, eventually settling on $150 billion.
260,000 federal employees laid off
Estimates indicate that 260,000 of the 2.3 million federal civilian employees were either laid off or accepted severance packages as a result of the “DOGE Act.”
In some cases, federal judges halted the mass layoffs and ordered the reinstatement of dismissed employees. The fast-paced approach to shrinking the federal workforce at times led to accidental terminations, including workers involved in the U.S. nuclear program.
In late April, Musk announced he would return full-time to managing his companies after becoming a target of criticism over Trump’s efforts to reshape Washington. Musk’s time in government coincided with a significant drop in electric vehicle sales from his company.
Falling sales and attacks on Tesla’s facilities and products
Tesla’s sales dropped 13% in the first three months of this year—the largest delivery decline in the company’s history. The company’s stock price also fell by about 45%, though it later recovered somewhat and ended up down by around 10%.
Tesla recently warned investors that financial strain may continue and declined to issue a growth forecast, noting that “shifting political sentiment” could significantly harm demand for its vehicles.
Last month, Musk told investors that the time he devotes to DOGE the Department of Government Efficiency “will be reduced significantly,” and that he would be focusing more on Tesla.
Activists have called for a boycott of Tesla, organized protests outside Tesla dealerships, and vandalized vehicles and charging stations. The backlash against Tesla has become so intense and widespread that U.S. Attorney General Pam Bondi warned that her office would treat such acts of vandalism as “domestic terrorism.”
