Elon Musk Quits DOGE After Backlash, Lawsuits, and Tesla Crash: “I Spent Too Much on Politics”

Elon Musk, the billionaire who led the Trump administration’s controversial Department of Government Efficiency (DOGE), has officially ended his 130-day tenure. What began as a bold promise to “drain the waste” in federal bureaucracy is ending in turmoil — lawsuits, misreported figures, bipartisan backlash, and a battered reputation for Musk and his companies.

In a post on X, Musk said his time as a “special government employee” had expired, thanking President Trump for “the opportunity to reduce wasteful spending.” But behind the formal language lies a dramatic unraveling of trust and ambition.

From Praise to Chaos: The Fallout of DOGE

DOGE, the administration’s experimental office tasked with cutting federal spending and workforce, delivered mass layoffs and drastic program shutdowns. Around 260,000 federal employees were removed through layoffs, buyouts, or early retirement. In an interview this week with The Washington Post, Musk admitted: “The federal bureaucracy situation is much worse than I realized. It’s been an uphill battle.”

The numbers, too, are under fire. In February, a Washington Post investigation revealed that DOGE had inflated its reported $55 billion in savings, with more than $9 billion later retracted after it was revealed that many of the “cancelled” contracts had already been completed or paid in full. Several public interest groups have filed lawsuits, and 14 U.S. states are suing the federal government over Musk’s appointment.

A Rift With Trump

The final break came this week, when Musk publicly denounced President Trump’s sweeping “One Big Beautiful Bill,” a massive tax-and-spending package that ballooned the federal deficit. “This bill increases the deficit, not cuts it,” Musk said on CBS News. “It undermines everything DOGE was created to fix.”

Trump, who just months ago appeared side by side with Musk in a Fox News interview full of mutual praise, has remained silent since the resignation. He has posted unrelated memes, but offered no statement on the departure of his top reform advisor.

Collateral Damage: Tesla and SpaceX Under Pressure

Musk’s political entanglement hasn’t come without cost. Tesla’s Q1 report showed a 71% drop in profits and a significant fall in sales year-over-year. Analysts widely attribute the slump to Musk’s controversial role in Washington, which has alienated consumers and investors alike.

Meanwhile, SpaceX suffered another setback this week after the Starship rocket exploded during a test flight. The National Highway Traffic Safety Administration continues investigations into Tesla crashes involving its driver-assistance system.

Speaking to Ars Technica, Musk admitted, “I probably did spend a bit too much time on politics this year. I don’t regret it — but there were trade-offs.”

What’s Next?

Musk has not ruled out a return to politics. At the Qatar Economic Forum last week, he said: “If I see a reason to engage in political spending in the future, I’ll do it. Right now, I don’t see one.”

But after months of controversy, lawsuits, and declining market confidence, even Musk’s staunchest supporters are asking a difficult question: Did the man who came to fix the system become a cautionary tale of what happens when Silicon Valley tries to run Washington?