Elon Musk Resignation: What’s the Real Story Behind It?
Elon Musk resignation has become one of the most talked-about developments in recent times. The world’s richest and most influential entrepreneur, Elon Musk, announced on May 29, 2025, via X (formerly Twitter) that he is stepping down from his role as Senior Advisor and Special Government Employee in President Donald Trump’s administration. This announcement has caused ripples not only in American politics but also across his companies — Tesla, SpaceX, and X Corp.
In this article, we will analyze the reasons behind Elon Musk’s resignation, the mission of the Department of Government Efficiency (DOGE), and the impact on Tesla’s stock performance.
Elon Musk’s Role in the Trump Administration
After Donald Trump’s victory in the 2024 U.S. Presidential election, Musk was appointed as the head of the Department of Government Efficiency (DOGE). The department was created to reduce government spending, cut bureaucracy, and streamline administrative procedures. Musk’s resignation marks the end of this role, but during his 130-day tenure, several significant changes were implemented.
Utilizing his business acumen, Musk claimed to have saved $1 trillion. His policies included the layoff of 95,000 federal employees, mandatory weekly work reports, and a strict return-to-office mandate. These measures reportedly contributed to reducing federal spending by up to $6 trillion. However, they also triggered discontent among government employees and policy experts.
Reasons Behind Elon Musk’s Resignation
Elon Musk’s resignation has sparked widespread discussion.
In his X post, Musk stated:
“My term as a Special Government Employee is ending. I thank President Donald Trump for the opportunity to help cut unnecessary spending. The DOGE mission will only grow stronger with time.”
Let’s explore the main reasons behind his departure:
1. Disagreements Over Trump’s “Big and Beautiful Bill”
One of the key triggers for Musk’s resignation was his criticism of Trump’s “Big and Beautiful Bill”, which proposed multi-trillion-dollar tax cuts, a massive defense spending hike, and stricter immigration policies. Musk labeled it a “massive spending bill” and claimed it contradicted the cost-cutting goals of the DOGE mission. This ideological clash fueled tensions between Musk and Trump, laying the foundation for his resignation.
2. Business Priorities
Musk also stepped down to refocus on his core businesses — Tesla, SpaceX, and X Corp — which had been facing mounting challenges in recent months. Tesla’s sales were declining, with critics blaming Musk’s political involvement. His resignation signals a return to corporate priorities and an attempt to rebuild investor and consumer confidence.
3. Stepping Away from Politics
Despite contributing $250–300 million to Trump’s 2024 campaign, Musk’s resignation suggests he now wishes to disengage from politics. He has indicated plans to spend less time and fewer resources on political activities, aiming instead to strengthen the image and performance of his brands.
Impact on Tesla’s Stock
Musk’s resignation has had a positive impact on Tesla’s stock performance. Investors see this move as a return to business fundamentals.
Sales Challenges
Since 2024, Musk’s political affiliations and his DOGE role had negatively affected Tesla’s brand. Many consumers began boycotting Tesla vehicles, viewing Musk’s politics as polarizing. This led to a dip in stock value. Marketing expert Scott Galloway commented that Musk’s political activities hurt the Tesla brand.
Market Recovery
Following the resignation announcement, Tesla’s stock surged. Investors are optimistic that Musk will now focus on increasing sales, launching new models, and driving innovation — positive signs for Tesla’s long-term growth.
DOGE Mission: Achievements and Controversies
The Department of Government Efficiency (DOGE) was launched under the leadership of Musk and Vivek Ramaswamy, with goals to cut spending and improve federal efficiency. Despite Musk’s departure, some of DOGE’s milestones are noteworthy:
Achievements
- Cost Savings: Musk claimed DOGE saved $1 trillion and slashed federal spending by $6 trillion.
- Administrative Reforms: Processes were streamlined and bureaucratic layers reduced.
- Accountability Measures: Weekly reports and return-to-office policies aimed to increase productivity.
Controversies
- Employee Discontent: Musk’s strict policies created unrest among staff. One federal employee compared the environment to “North Korea”, criticizing it as authoritarian.
- Tensions with Trump: Musk’s criticism of the “Big and Beautiful Bill” escalated internal tensions.
- Limited Success: Some experts argue that DOGE did not fully meet its ambitious targets.
Musk and Trump: A Relationship Ends?
Elon Musk resignation signals a potential shift in his relationship with Trump. In 2024, Musk was one of Trump’s biggest backers — offering financial support and amplifying Trump’s campaign through social media. However, their disagreement over the spending bill and Musk’s renewed business focus may have fractured their alliance.
Implications for the Republican Party
Musk resignation could pose challenges for the Republican Party. His financial and social media backing was instrumental in the 2024 victory. Losing his support could hurt the party’s strategy and fundraising for the 2026 midterm elections.
What’s Next for Musk?
Elon Musk resignation could be the beginning of a new chapter for his companies. Some likely future initiatives include:
- Tesla: Focusing on affordable EVs, new model launches, and autonomous driving technology.
- SpaceX: Accelerating the Starship project and pushing forward Mars missions.
- X Corp: Expanding the platform’s features to build a more influential social media ecosystem.
Also Read
U.S. Student Visa Ban: Crisis for Indian Students’ Dreams, Explore the Alternatives
