Elon Musk has officially resigned from his role leading the Department of Government Efficiency (DOGE), conceding that slashing federal waste proved far harder than expected. In a candid X post, Musk thanked former President Donald Trump for the opportunity but admitted the job was an “uphill battle”: a stark contrast to his initial $2 trillion savings pledge.
The Department of Government Efficiency, a controversial initiative modeled after the meme cryptocurrency Dogecoin, claimed $175 billion in taxpayer savings—a figure widely disputed by watchdogs. With Musk’s departure, questions loom over DOGE’s legacy and whether its aggressive workforce cuts (12% of federal jobs eliminated) crossed legal lines.
“Federal bureaucracy is much worse than I thought”: Musk’s costly exit
Musk’s tenure at the Department of Government Efficiency was marked by turbulence. In a Washington Post interview, he admitted:
“The federal bureaucracy situation is much worse than I expected. It’s an uphill battle trying to improve things in DC.”
Elon Musk leaves the Department of Government Efficiency (DOGE). Via: Elon Musk (X)
Critics argue DOGE’s methods were reckless. A Reuters investigation found its savings reports contained glaring errors. At the same time, 14 states sued Musk and the Department of Government Efficiency for allegedly overstepping constitutional authority, including illegally accessing federal systems to cancel contracts.
“This wasn’t efficiency; it was chaos,” said Rep. Alexandria Ocasio-Cortez (D-NY) in a May 30 statement. “The Department of Government Efficiency operated like a bull in a china shop, leaving skilled workers jobless and programs gutted.”
Tesla pays the ‘price’ for Musk’s political detour
As Musk’s focus shifted to the Department of Government Efficiency, Tesla’s stock plummeted 5.9% year-to-date amid falling sales. Shareholders cheered when Musk announced reduced DOGE involvement in May—Tesla’s stock jumped 5% post-earnings.
“I probably spent too much time on politics,” Musk told Ars Technica, though he downplayed the scale of his DOGE work.
Analysts weren’t convinced. “Musk’s divided attention hurt Tesla’s momentum,” said Wedbush’s Dan Ives. “The Department of Government Efficiency was a distraction the company couldn’t afford.”
DOGE’s disputed legacy: $175 billion saved or fiscal fantasy?
The Department of Government Efficiency insists it saved taxpayers $175 billion—but watchdogs call that “wildly inflated.” The New York Times found DOGE counted canceled projects as “savings,” even if funds were reallocated.
Musk remains defiant. “DOGE’s mission will strengthen over time as efficiency becomes a way of life in government,” he tweeted.
Yet with lawsuits pending and Musk gone, the Department of Government Efficiency faces an uncertain future.
Olivia Jackson is a US-based cryptocurrency writer and market analyst with a passion for decoding the complexities of blockchain technology and digital assets. With over five years of experience covering the crypto space, she specializes in breaking down market trends, regulatory developments, and emerging Web3 innovations for both retail and institutional audiences.
Her work has appeared in leading finance and tech publications, including CoinDesk, Decrypt, and The Block, where she provides data-driven insights on Bitcoin, DeFi, and the evolving regulatory landscape. Olivia is particularly interested in the intersection of traditional finance and decentralized systems, often exploring how macroeconomic shifts impact crypto markets.
