Trump Signals Elon Musk To Step Back from DOGE Role as Tesla Stock Jumps

President Trump has allegedly told aides that Elon Musk will soon scale back his role at the Department of Government Efficiency per sources close to the White House. The shift comes weeks into Musk’s stint heading the cost-cutting agency raising questions about his influence in Trump’s administration. Tesla stock surged on the news as investors bet on Musk refocusing on his business empire.

Musk took the DOGE helm to slash federal spending a mission that’s drawn fire for its scope and pace. He’s pushed to dismantle agencies and fire tens of thousands a plan critics call reckless amid an already shaky economy. Trump allegedly sees Musk’s exit as a chance to temper the backlash while keeping him as an informal adviser.

The decision follows reports of Musk clashing with Trump loyalists over the speed of DOGE’s cuts per Politico. Some aides worried his outsized role risked overshadowing Trump’s agenda. Stepping back could ease tensions and let Musk reclaim his perch as a behind-the-scenes power broker.

Tesla shares spiked nearly 5 percent after the news broke reflecting Wall Street’s relief at Musk’s potential return to the company. His hands-on leadership at Tesla and SpaceX has fueled their rise though his White House gig sparked fears of divided focus. Investors now eye a rebound as Musk refocuses on electric cars and rockets.

Musk’s DOGE tenure as a special government employee expires in late May or June per ethics rules though he could exit sooner. Trump reportedly wants him out by mid-May to shift gears before summer budget fights heat up. The timeline gives Musk a graceful off-ramp while keeping him in the fold.

Critics slammed Musk’s DOGE cuts as a gift to billionaires like himself gutting services for average Americans. Supporters hailed his axe to bureaucracy as a win for taxpayers tired of waste. Trump’s move to sideline him suggests a middle path bowing to political heat without cutting Musk loose entirely.

Musk’s informal advisory role could still shape Trump’s economic playbook from tax cuts to trade deals. His sway with the president remains a lightning rod for foes who see him as too cozy with power. Yet Trump’s inner circle insists Musk’s step-back is a natural pivot not a rift.

The alleged shakeup caps a whirlwind stretch for Musk who went from campaign megadonor to White House insider in months. His next act whether at Tesla or in Trump’s orbit will test his clout in a polarized Washington. For now Trump keeps his “First Buddy” close but not too close as the tariff storm looms.