Why Elon Musk Stepped Away from the Trump Administration

Elon Musk’s brief stint in Washington has come to an end — and with it, a storm of political pressure, public backlash, and mounting business concerns.

On May 28, tech billionaire Elon Musk announced his departure from the Trump administration, just months after taking on a high-profile advisory role leading the federal cost-cutting initiative known as the Directorate of Government Efficiency (DOGE).

The move closes a turbulent chapter in which Musk became one of the most influential — and controversial — figures in the Trump administration. While tasked with streamlining federal spending, Musk also found himself at the center of fierce public scrutiny, political disputes, and legal questions over potential conflicts of interest.

Legal Limits and Political Fallout

Observers say Musk’s decision was driven by a mix of factors — not just legal deadlines. Under federal rules, Musk’s role as a “Special Government Employee” (SGE) limited him to 130 days of government service in a 12-month span. That limit, set in motion when Trump took office, expired by late May.

While Musk cited this legal cap in his announcement on X, insiders told Politico and ABC News that the exit had been quietly discussed within the administration for weeks. Some analysts argue the 130-day rule was more of a convenient off-ramp than a hard constraint, noting that extensions were possible if both sides were willing.

Max Stier, head of the Partnership for Public Service, called Musk’s role a legal workaround designed to bypass background checks and financial disclosures normally required for full-time appointees. Stier said Musk’s exit may have been a strategic move to avoid escalating legal scrutiny around conflict-of-interest issues.

Public Backlash and Falling Approval

Musk’s approval ratings as DOGE chief nosedived in recent weeks. An April poll by The Washington Post and ABC News found only 35% of Americans approved of his performance, while 57% disapproved — up from 49% in February. Disapproval was especially high among younger voters and those without college degrees.

His first political setback also stung: a conservative judicial candidate backed by more than $20 million from Musk lost a key race for Wisconsin’s Supreme Court. CNN political analyst Harry Enten described it as a blow to Musk’s growing political brand — one that could ripple into the 2026 midterms.

Meanwhile, The New York Times’ Eric Lipton reported that Musk failed to meet DOGE’s most ambitious goal: cutting $1 trillion in federal spending. One major misstep included proposing cuts to Ebola prevention programs, which sparked fierce criticism and undercut his credibility.

Protests, Business Losses, and Tesla Fallout

Musk also faced mounting pressure outside Washington. The “Tesla Takedown” protests in March targeted Musk directly, accusing him of slashing public services such as foreign aid and medical research while protecting his corporate interests. Some Tesla dealerships were vandalized both in the U.S. and abroad, reflecting growing public frustration.

Behind the scenes, Tesla’s financials were faltering. In Q1 2025, the company reported a 13% drop in sales and a 71% decline in profits, amid intensified consumer boycotts tied to Musk’s political involvement. Tesla stock also took a hit, forcing Musk to tell investors in April that he would scale back his time in Washington to just “one or two days per week” and refocus on Tesla and SpaceX.

That retreat underscored a stark reality: Musk’s political ambitions were becoming a liability for his business empire.

Deepening Tensions with Trump

Another key factor: Musk’s growing rift with Trump over fiscal priorities. In a May 27 interview with CBS, Musk publicly criticized a $3.8 trillion spending bill pushed by Trump, calling it “fiscally irresponsible” and contrary to DOGE’s mission.

According to the Congressional Budget Office, the bill would raise deficits by $3.8 trillion over ten years due to tax cuts, while actual spending reductions would total just over $1 trillion. The Committee for a Responsible Federal Budget warned it could push national debt up by $3 trillion, including interest costs.

Lipton noted that Musk’s frustration grew as his cost-cutting goals were eclipsed by Trump’s expansive fiscal agenda. Meanwhile, Musk’s dissent may have eroded Trump’s trust, accelerating the breakup, Reuters reported.

A Growing Ethics Storm

Musk’s overlapping roles in government and business sparked bipartisan concern. His companies — Tesla, SpaceX, and X — hold billions in federal contracts, while DOGE had authority over budget cuts in agencies tied to those same sectors.

Democratic Senator Cory Booker criticized the lack of transparency and called Musk’s position a threat to public accountability. Legal expert Max Stier echoed that view, warning that Musk’s role set a “dangerous precedent” where unelected individuals wield outsized influence over national policy.

Stier said Musk’s departure was necessary to restore trust in government and tamp down calls for congressional investigations into DOGE and potential ethics violations.

What Comes Next

Musk’s exit may signal a shift in Trump’s staffing strategy — away from high-profile outsiders and toward Senate-confirmed appointees. Still, some of DOGE’s controversial proposals — including slashing $1.1 billion from NPR and PBS and cutting $8.3 billion in foreign aid — may continue to shape the federal budget debate.

As Max Stier put it, Elon Musk may be gone from Washington, but his imprint on federal spending priorities will likely linger.

Sources: Politico, Wall Street Journal

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