Outlook Business Desk
Elon Musk was appointed by President Trump to lead the Department of Government Efficiency (DOGE), aimed at cutting costs and streamlining federal operations.
Musk became a major supporter of Trump, contributing over $290 million to his campaign and advocating for Trump’s policies, especially in government reform and deregulation.
Under Musk, DOGE aimed to save $2 trillion by cutting bureaucracy and reducing federal spending. However, the initiative faced challenges in meeting its original targets.
Musk’s political activities were cited as a reason for Tesla’s 71% profit decline in Q1 2025, prompting him to reconsider his leadership role in DOGE to refocus on Tesla.
Vivek Ramaswamy a biotech entrepreneur and former Republican presidential candidate was initially appointed alongside Musk to co-lead DOGE. He was seen as a key player in reshaping the efficiency department.
Ramaswamy exited DOGE shortly after Trump’s inauguration, citing differences within the team and a shift toward pursuing political aspirations, including a potential gubernatorial bid.
Following Musk’s announcement to focus on Tesla, investors showed strong approval, with Tesla’s stock surging by 20%, signaling renewed confidence in Musk’s leadership.
DOGE’s aggressive cuts faced criticism, with many questioning the long-term consequences of drastic federal program reductions and mass layoffs within government agencies.