Zinger Key Points
- Elon Musk's time leading the White House administration in looking for fraud and cutting government spending could be coming to an end.
- Tesla stock jumped on a report that Musk's role with the White House could be minimized.
- China’s new tariffs just reignited the same market patterns that led to triple- and quadruple-digit wins for Matt Maley. Get the next trade alert free.
Elon Musk's growing role within the White House through the Department of Government Efficiency could be coming to an end soon according to a new report.
What Happened: Musk was announced to lead the so-called Department of Government Efficiency by President Donald Trump before his 2024 presidential election victory with an official announcement coming after his win.
Musk has sought to find government waste through elimination of jobs and federal aid programs, with some of the moves having been met with opposition from both Republican and Democrat voters and members of Congress.
A new report from Politico said Trump told members of his Cabinet that Musk could be leaving the White House soon.
The report comes as Trump has publicly praised Musk and the role that the D.O.G.E. is doing in finding government waste and saving taxpayer money.
Musk's moves have upset some Trump allies and members of the administration according to the report, which could explain the timing.
The potential diminished role for Musk would also come after his vocal support in the Wisconsin Supreme Court race saw the Republican candidate he supported lose the race.
Why It's Important: Mentioned as a potential political liability in the report, Musk's time helping the Trump administration could come to an end or see a lessened role. The Wisconsin race could be a warning sign to Republicans that Musk's moves are being used as a rally cry for Democrats or pushing Independent voters to the Democratic side.
Special government employees are only able to work 130 days during a calendar year. With that timeline now set to expire in May or early June, this could also explain the reason for a potential exit for Musk. Special government employees are shielded from some conflict-of-interest and ethics rules, which has helped protect Musk from pushing for control of agencies that oversee his companies like Tesla Inc TSLA, X and SpaceX.
Many close to Trump believe that even if Musk exits from his key leadership role he will still be an advisor. One source said that anyone thinking Musk goes away completely are "fooling themselves."
Trump recently hinted at Musk going back to more work at the companies he runs and owns, including Tesla.
"At some point Elon's gonna want to go back to his company," Trump said Monday night.
White House spokesperson Harrison Fields told reporters Tuesday that Musk would stay on "as long as possible."
"Elon has been instrumental in executing the president's agenda, and will continue this good work until the president says otherwise," Fields said.
An exit for Musk from his large role in the White House could be good timing for Tesla and its stock. The company reported first-quarter deliveries Wednesday morning that missed analyst estimates and fell below estimates from Tesla influencers.
TSLA Price Action: Tesla stock is up 4.30% to $280.44 on Wednesday, reversing course from being down on the day shortly after the Politico story broke. Tesla stock has traded between $138.80 and $488.54 over the past 52 weeks. The stock is down 25.6% year-to-date in 2025.
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