Elon Musk May Soon Exit Trump Administration, Politico Reports
Elon Musk may step down from his government role in leading the Department of Government Efficiency as President Trump hints at his return to business. This potential exit comes amid challenges for Tesla, whose stock rebounded after initial declines tied to poor vehicle sales. Musk's departure could impact both government initiatives and Tesla's performance.
hassan benyoub 
Washington, April 2, 2025 – Elon Musk, the billionaire entrepreneur and a key figure in Donald Trump’s administration, could be stepping away from his government role in the coming weeks, according to a report by U.S. outlet Politico. The news has sent ripples through political and financial circles, with Tesla’s stock rebounding sharply after an initial dip.
Musk’s Potential Departure
Politico cited sources close to President Donald Trump, including cabinet members, claiming that Trump recently informed his inner circle of Musk’s impending exit from his position leading the Department of Government Efficiency (DOGE). Musk, a vocal supporter of Trump during the presidential campaign, was appointed to head the commission tasked with “dismantling government bureaucracy” following Trump’s election victory.
The report suggests a mutual understanding between the two men. “They’ve decided it’s nearly time for Elon Musk to refocus on his businesses while maintaining a supportive role,” Politico wrote. On Monday, Trump addressed the press at the White House, hinting at Musk’s future plans: “I think he’s terrific, but he’s got a big company to run, and at some point, he’ll go back to it. He wants to.”
Musk, who helms Tesla, SpaceX, and owns X (formerly Twitter), has juggled his corporate empire with his advisory role in Washington. His potential departure would mark a shift back to prioritizing his business ventures, which have faced mounting challenges in recent months.
Tesla Stock Rebounds
The Politico report triggered a volatile day for Tesla’s stock on the New York Stock Exchange. After plunging over 6% at the opening bell—driven by disappointing first-quarter sales figures—the stock reversed course following the news of Musk’s possible exit. By 4:30 PM GMT, Tesla shares surged 5.33% to $282.73, reflecting investor optimism about Musk refocusing on the company.
Tesla reported a 13% drop in global vehicle deliveries for the first quarter of 2025, with 336,681 units handed over compared to 386,810 in the same period of 2024. Analysts had expected deliveries between 340,000 and 360,000, making the shortfall a blow to market confidence. The stock’s early decline underscored broader concerns about Tesla’s performance amid stagnating product updates and backlash tied to Musk’s political alignment with Trump.
Challenges Facing Tesla
Tesla has faced headwinds beyond sales figures. The company has been targeted by vandalism, boycotts, and protests in the U.S. and abroad since Musk’s high-profile support for Trump. Critics argue the brand’s image has suffered, while its product lineup—unchanged since the Model Y debuted in 2020—has failed to keep pace with competitors. Recent data from local authorities in Western Europe and other markets revealed a months-long collapse in sales, further pressuring Tesla’s stock in recent weeks.
What’s Next for Musk and Trump?
Musk’s potential exit raises questions about the future of the DOGE initiative and his influence within Trump’s administration. While Trump praised Musk’s contributions, the president’s comments suggest an amicable parting, with Musk expected to remain an informal ally. For Tesla investors, the news offers hope that Musk’s return to full-time leadership could stabilize the company amid its current struggles.
As the situation unfolds, all eyes will be on Musk’s next moves—and whether his departure from Washington can spark a turnaround for Tesla’s fortunes.
