DOGE completion boosts Tesla shares

Donald Trump has confirmed that Elon Musk, the billionaire leading the Department of Government Efficiency (DOGE), will depart from the U.S. administration in the coming weeks. The decision, reached mutually by the president and the entrepreneur, marks the end of a partnership that delivered significant results but also stirred controversy. Sources close to the government revealed that Musk’s exit aligns with the expiration of his “special government employee” status, set for late May or early June. The White House emphasized that his departure will occur once his DOGE responsibilities are fulfilled, while Tesla’s stock surged 3.91% on the New York Stock Exchange, reaching $278.95 by 1:06 p.m. Brasília time. The announcement reverberates through political and economic spheres, underscoring Musk’s influence in both Trump’s administration and global markets.

Musk’s tenure in the government began in January when he took charge of DOGE, tasked with slashing costs and reducing the federal deficit. Under his leadership, the department reportedly saved $140 billion, though the exact figure remains under scrutiny. Trump praised Musk’s efforts during a cabinet meeting on March 24, calling him a “patriot” and acknowledging his resilience amid personal threats and vandalism targeting Tesla vehicles in recent months. The bond between the two, forged during the 2024 election campaign, now approaches a turning point as Musk prepares to refocus on his business empire.

However, Musk’s presence in the administration wasn’t without friction. Some government officials and external allies grew frustrated with his unpredictability, increasingly viewing him as a political liability. A wave of protests against Tesla, including vandalism in the U.S. and Europe, further complicated his public image. Despite this, the White House indicated that Musk will retain an informal advisory role, suggesting his influence within Trump’s orbit will persist in some capacity.

Immediate market impact

Musk’s impending exit triggered an immediate response in financial markets. Following the news, Tesla shares climbed nearly 4% within hours, a sharp reversal from the 36% drop accumulated in the first quarter amid protests and boycotts tied to Musk’s government role. Analysts suggest his return to Tesla’s helm could restore investor confidence, particularly with projects like the autonomous ride-hailing service slated for June in Austin on the horizon.

Tesla’s market performance reflects the duality of Musk’s government stint. While his DOGE leadership earned praise for cost-cutting, the politicization of the brand alienated some consumers, notably Democrats who once championed its environmental innovation. With his departure, expectations are high that Musk can mitigate this backlash by refocusing on technological breakthroughs and global expansion.

Transition timeline

Musk’s exit is tied to a specific schedule. As a “special government employee,” he operates under a temporary exemption from ethical and conflict-of-interest rules, valid for 130 days from January 20. This period ends between late May and early June, aligning with Trump’s announcement. Key milestones include:

• January 20: Musk officially assumes DOGE leadership under Trump’s executive order.
• March 24: Trump thanks Musk in a cabinet meeting, hinting at the partnership’s conclusion.
• Late May/early June: Musk’s special employee status expires.
• July 4, 2026: DOGE’s mandate ends, potentially continuing without Musk.

Reactions in government and politics

Within the administration, Musk’s departure elicits mixed feelings. A senior official noted that he’ll likely remain a frequent presence around the White House, maintaining his bond with Trump. Yet, not everyone welcomes this. External allies have voiced discontent over Musk’s influence, particularly after DOGE’s controversial moves, such as freezing federal agency funds and mass layoffs of public servants.

The opposition seized the moment to critique the Trump-Musk alliance. Democrats highlighted their defeat in Wisconsin’s Supreme Court election, where Musk poured over $20 million into a failed campaign. The loss energized the party, which now sees Musk’s exit as a chance to undermine Trump’s efficiency narrative.

Musk’s DOGE legacy

Elon Musk took on DOGE with a bold pledge to cut the federal deficit by $1 trillion, a goal he recently claimed was “mostly achieved” in a Fox News interview. While official figures are pending, the department claims $140 billion in savings through cuts in defense, education, and welfare spending. The approach involved renegotiating Pentagon contracts and axing programs deemed inefficient, earning Trump’s applause and criticism from impacted sectors.

Musk’s DOGE tenure also introduced structural shifts. Federal agency secretaries were trained to sustain cost-cutting efforts, hinting that the department could endure his exit. The executive order establishing DOGE sets its term through July 2026, though its future without Musk’s leadership remains uncertain.

Protests and Tesla’s image

Musk’s government role left a lasting mark on Tesla. Since joining DOGE, the company faced over 200 protests worldwide in March alone. Activists from the “Tesla Takedown” movement staged demonstrations in cities like London, Pasadena, and Chicago, urging boycotts of the brand and its stock. Vandalism incidents, including fires at charging stations and gunfire at dealerships, were labeled “domestic terrorism” by Attorney General Pam Bondi.

These events drove Tesla’s first-quarter struggles, with a 36% stock drop and a $460 billion loss in market value. Musk acknowledged the personal and corporate toll, describing his DOGE role as “very expensive” during a Green Bay event. His exit is seen as an opportunity to rebuild Tesla’s reputation, leveraging innovation to counter the fallout.

What’s next for Musk at Tesla

Returning to Tesla, Musk is expected to prioritize strategic initiatives to regain momentum. The June launch of an autonomous ride-hailing service in Austin is a cornerstone of this effort. Analysts predict that self-driving technology could become Tesla’s primary value driver, offsetting challenges from Trump’s automotive tariffs affecting suppliers in Mexico and China.

Tesla also navigates competition from legacy automakers like Ford and GM, hit harder by the 25% tariffs on imported vehicles. With most production stateside, Tesla stands to gain relatively, though Musk cautioned that imported component costs will still pose a “significant” challenge, necessitating supply chain adjustments.

Outlook for Trump’s administration

Musk’s DOGE exit raises questions about Trump’s efficiency agenda. The president has signaled intent to keep the department running, but without Musk’s charisma, its political clout may wane. Their relationship, however, is likely to endure, with Trump noting Musk “never asked for favors” and framing his departure as a natural shift back to business.

Meanwhile, the administration faces mounting hurdles, including automotive tariff rollouts and Democratic resistance in Congress. Losing Musk as a key figure could dilute the economic success narrative at a time when protests and critiques intensify.

Fun facts about the Trump-Musk partnership

The Trump-Musk collaboration produced notable moments and quirks. Here are a few:

• Trump bought a Tesla Model S in March as a “show of support,” parking it on the White House lawn.
• Musk wore a “Make America Great Again” cap at official meetings, cementing his alliance with Trump.
• He donated over $290 million to Trump’s 2024 campaign, a record for a business mogul.
• Tesla faced over 200 global protests in March, a direct backlash to Musk’s DOGE role.