Musk leaves U.S. government amid split with Trump

Billionaire Elon Musk has stepped down as head of the U.S. government’s new DOGE office after 130 days, amid growing tensions with President Donald Trump over tax policy.

Officially, Musk’s resignation is linked to the legal limit on special appointments, but sources say the real reason was his criticism of Trump’s proposed tax reform, which is expected to add $3 trillion to the U.S. deficit over the next decade.

Once a major supporter and top donor to Trump’s 2024 campaign, Musk expressed disappointment over plans to increase government spending.

During Musk’s tenure, about 260,000 federal employees were laid off, including staff from the IRS — a move Yale University estimates will cost $323 billion in lost tax revenue over 10 years.

Meanwhile, Musk’s Tesla reported a 71% drop in profits in the first quarter of 2025, as protests and reputational damage linked to his government role mounted.

Analysts view the fallout with Trump as a lasting rift, especially as Trump cannot run for a third presidential term.

N.Tebrizli