What to know

  • Elon Musk will leave his position as special advisor to the Department of Government Efficiency next week after a six-month tenure.
  • During his time, Musk helped identify $1.2 billion in potential cost savings across federal agencies.
  • The tech billionaire cited growing commitments at his companies Tesla, SpaceX, and X as the reason for his departure.

Elon Musk is stepping down from his role in the US government next week, according to an announcement from the Department of Government Efficiency on Thursday. The tech billionaire has served as a special advisor for the past six months, working on initiatives to reduce government spending and improve operational efficiency.

The White House confirmed that Musk's departure was planned from the beginning as a temporary assignment. "Mr. Musk agreed to a six-month commitment to help identify areas where the federal government could operate more efficiently," said White House Press Secretary James Wilson.

During his brief government stint, Musk worked alongside career civil servants to review processes across multiple federal agencies. His team reportedly identified potential annual savings of approximately $1.2 billion through streamlining administrative procedures and reducing redundancies.

In a statement posted on his social media platform X, Musk explained his decision to leave: "It's been an interesting experience working within government. I need to refocus on my companies as we have several critical projects launching in the coming months."

Sources familiar with the matter indicate that Musk's recommendations faced resistance from some agency heads who questioned the feasibility of implementing rapid changes to established government systems.

The Department of Government Efficiency, created earlier this year, will continue its work with a team of career civil servants and private sector advisors. The department aims to reduce federal spending by $50 billion over the next four years.

Critics of Musk's appointment had questioned potential conflicts of interest given his companies' government contracts. Ethics watchdogs raised concerns about his dual role as both a government advisor and CEO of companies that receive significant federal funding.

Supporters of the initiative praised Musk's willingness to apply his business experience to government operations. Senator Mark Thompson said, "Having someone with his track record of innovation look at our systems with fresh eyes was valuable, regardless of the duration."

The Department of Government Efficiency is expected to release a full report on Musk's findings and recommendations next month, which will detail specific areas targeted for reform and potential savings.