Elon Musk has directly countered recent reports suggesting he's pulling away from government advisory roles, labelling them as 'fake news.' This response comes amid speculation about his involvement in policy discussions and influence on regulatory matters.
Last month, a high-ranking White House staffer informed NBC News, a US partner of Sky, that Donald Trump has talked about Elon Musk's shift back to private business during a cabinet meeting. Karoline Leavitt, the White House press secretary, labelled the meeting reports as 'garbage' after they came out.
This “scoop” is garbage.
— Karoline Leavitt (@PressSec) April 2, 2025
Elon Musk and President Trump have both *publicly* stated that Elon will depart from public service as a special government employee when his incredible work at DOGE is complete. https://t.co/Brppff6SKi
Conflicting Reports On Musk's Departure
'Elon Musk and President Trump have both publicly stated that Elon will depart from public service as a special government employee when his incredible work at DOGE is complete,' Leavitt explained. Musk simply replied on X: 'Yeah, fake news.'
According to NBC News, the official claimed Musk would step down once his 130 days as a special government employee were up, which falls on 30 May. Whether the business magnate will truly leave on that date is still unknown.
The White House had previously stated that DOGE, as a short-term entity, was set to conclude on 4 July next year, coinciding with the US's 250th anniversary. Musk's statement followed his recent disclosure that members of his DOGE team were facing death threats daily.
Yeah, fake news https://t.co/nPhTpZj3Fc
— Elon Musk (@elonmusk) April 2, 2025
DOGE's Controversial Impact
The Musk-led DOGE project has been highly controversial. The team's work on cutting government costs and reshaping federal positions has reportedly led to widespread public discontent.
Within a matter of weeks, whole government bodies were shut down, and tens of thousands of individuals from the 2.3 million federal employees were dismissed or chose to depart their positions.
DOGE's recommended cuts led to numerous lawsuits in both state and federal courts. In response, Tesla locations have reportedly been targeted in attacks, which the FBI is investigating as potential acts of domestic terrorism.
Market Reacts To Musk's Potential DOGE Exit
Amidst the controversy and potential legal battles surrounding DOGE, financial markets have reacted noticeably to reports indicating Musk's possible departure, with Tesla shares experiencing a significant uptick.
On 2 April. Tesla shares increased following a Politico report suggesting Elon Musk might soon depart from his position at DOGE, fueling speculation that he would refocus his attention on the electric vehicle company.
The stock finished the day over 5% up, a significant recovery from its session low, where it had fallen by as much as 6.4% earlier due to disappointing first-quarter vehicle delivery figures.
The report, citing individuals within Trump's circle, indicated that despite President Trump's approval of Musk and the DOGE cost-saving initiatives, Musk and Trump mutually decided to return to his business interests.
DOGE's Future Amidst Uncertainty
Sources such as NBC News reported that President Trump addressed Musk's potential departure from his government duties. As the conflicting narratives surrounding Elon Musk's role within DOGE continue to unfold, the market's sensitivity to his potential departure highlights the intricate relationship between his various ventures.
Whether Musk remains in his government position until DOGE's completion, as the White House insists, or transitions back to his private enterprises sooner, as reports suggest, the implications for both Tesla and the ongoing government restructuring remain significant.
The coming weeks will likely bring further clarity to this evolving situation, shaping the future of DOGE and Musk's multifaceted influence.
