Elon Musk to step down from US cabinet 'in coming weeks', Trump tells inner circle
2 April 2025, 16:47 | Updated: 3 April 2025, 00:46
Elon Musk is set to exit Donald Trump's cabinet in the "coming weeks" - Donald Trump has told members of his inner circle.
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Musk, who leads the Department of Government Efficiency, will step down "soon" amid reports that Trump's cabinet has begun to view the billionaire as a political liability.
DOGE has overseen massive cuts to the federal government since Trump took office, with thousands of workers losing their jobs in the process.
One senior administration official told Politico that Musk will retain an informal role as an adviser after quitting the cabinet.
Another warned that anyone thinking Musk will give up his position entirely is “fooling themselves.”
Musk's reported exit comes after wide-ranging reports that those close to Trump have become increasingly frustrated with the Telsa boss in recent weeks, pointing to his unpredictability.
When Musk was granted control of DOGE, he was given 130 days to slash government spending but as this deadline neared, many claimed Trump would find a way to extend the unelected South African's stay in his cabinet.
This exit marks a stark shift in the Trump-Musk relationship, with many believing just weeks ago that the Tesla owner was "here to stay."
Earlier this week, Trump hinted Musk would leave the cabinet "at some point".
"I think he's amazing, but I also think he's got a big company to run and so at some point he's going to be going back," Trump said."
He wants to. I'd keep him as long as I could keep him."
It comes as Tesla sales have plummeted to their lowest levels in three years.
This bad news for the electric car maker comes ahead of “Liberation Day”, where Trump is expected to announce tariffs on a slew of countries across the globe, including the UK.
Tesla delivered around 337,000 electric vehicles in the first three months of this year, marking a 13% year-on-year drop.
Tesla shares have also tumbled as people across the globe rally against the company’s hard-right owner, Elon Musk, and his close ties to Donald Trump.
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The company’s struggles come amid rising competition from Chinese car company BYD - which offers cheaper alternatives to Musk’s Teslas.
But experts have also suggested Musk’s relationship with Trump and his efforts to slash government spending, resulting in thousands of people losing their jobs, have also played a role in tumbling sales.
Since Musk began leading the so-called Department of Government Efficiency (DOGE), Tesla dealerships have been vandalised and owners have had their vehicles damaged.
Elon Musk has branded these protests “domestic terrorism” and claimed they are supported by the Democratic Party.
"We are not going to look at these numbers with rose colored glasses... they were a disaster on every metric," Wedbush analyst Dan Ives said on Wednesday.
"The more political [Musk] gets with DOGE the more the brand suffers, there is no debate."
