Amid growing criticism of his electric car business, Tesla, billionaire Elon Musk dropped a hint about resigning from the US government’s Department of Government Efficiency (DOGE) by the end of May this year.
Elon Musk, who is a special government employee (SGE), holds a temporary appointment with a restriction to 130 days in a period of 365 days. The billionaire entrepreneur and special advisor to President Donald Trump led an assertive program to reduce government expenditure that led to federal spending reducing to about USD 6 trillion.
Elon Musk on Eliminating Government Waste
In an interview, Musk claimed that his team had been slashing waste and fraud at an average rate of “USD 4 billion a day” and had nearly achieved their primary objective within 130 days.
Musk said”I think we will accomplish most of the work required to reduce the deficit by a trillion dollars within that timeframe,” he emphasized.
DOGE’s budget reductions have ignited protests and lawsuits throughout the United States, but Musk dismissed criticism that the department was acting recklessly, “They may characterise it as shooting from the hip, but it is anything but that,” he said. “Which is not to say that we don’t make mistakes.”
DOGE’s Cost-Cutting Measures
Musk is firm in his resolve to eliminate federal inefficiencies. The DOGE team of seven senior advisors Aram Moghaddassi, Steve Davis, Brad Smith, Anthony Armstrong, Joe Gebbia, Tom Krause, and Tyler Hassen has achieved cost savings through employee layoffs, asset disposals, and contract terminations, saving US taxpayers an estimated USD 115 billion as of March 24.
Tesla Faces Challenges Amid Musk’s DOGE Leadership
Elon Musk’s announcement arrived during a period of turmoil for Tesla, which has been beset by widespread protests, stock drops, and even vandalism targeting its buildings. Tesla’s shares fell more than 5 percent last Monday, casting doubts about the future stability of the company.
Despite the backlash, Elon Musk remains confident about the direction of the US economy, “The government is not efficient, and there is a lot of waste and fraud,” he said, asserting that a “15 percent reduction” in federal spending could be achieved without jeopardising critical services.
Musk elaborated “America will be solvent. The critical programs that people depend upon will work, and it’s going to be a fantastic future. And are we going to get a lot of complaints along the way? Absolutely.”
Elon Musk on Feeling Overwhelmed
Addressing Tesla employees in Austin last Thursday, Musk admitted feeling stretched too thin due to his multiple roles. “I’m stretched pretty thin. I have like 17 jobs,” he said.He also described the media coverage of the attacks on Tesla as “feeling like Armageddon” but sought to reassure his workforce, saying,”The future is incredibly bright and exciting, and we’re going to do things that no one, I think, has even dreamed of.”
Legal Challenges Against DOGE
Adding to the furor, Musk and DOGE are facing several lawsuits alleging that the department acted without legal authority and infringed on privacy laws. In spite of these lawsuits, Musk continues to defend his agency’s actions, claiming that inefficiencies in the government need to be dealt with.
