A viral report suggesting Elon Musk is preparing to step back from his role in the Trump administration was swiftly rejected on Tuesday night, as both Musk and White House officials pushed back on the claim. Musk specifically responded to the story calling it “fake news.”
The controversy began when Washington Post journalist Rachael Bade posted on X that former President Donald Trump had told confidants that Musk would soon scale back his role as a special government employee, stepping away from the Department of Government Efficiency (DOGE) to return to his private ventures.
The report cited frustrations from within the administration over Musk’s unpredictability, including his tendency to announce major ideas or agency overhauls unilaterally on social media. Bade also pointed to the recent political fallout in Wisconsin, where a Musk-backed conservative judge lost a Supreme Court election by 10 points — an upset that allegedly amplified concerns among Trump insiders.
However, the White House wasted no time in pushing back.
“This ‘scoop’ is garbage,” White House Press Secretary Karoline Leavitt posted on X. “Elon Musk and President Trump have both publicly stated that Elon will depart from public service as a special government employee when his incredible work at DOGE is complete.”
Musk himself responded directly to the story, writing simply: “Yeah, fake news.”
No Immediate Exit
Musk’s current status in the administration stems from a 130-day appointment as a special government employee, a designation that provides limited exemptions from federal ethics rules while allowing outside experts to temporarily serve in government roles. That window is expected to expire in late May or early June, prompting speculation about what comes next.
While Bade’s report claimed a shift in tone from the White House — alleging that insiders no longer expected Musk to remain influential in a long-term capacity — Trump allies insist nothing has changed.
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Since assuming his role at DOGE, Musk has made waves by publicly proposing drastic cuts to federal departments, suggesting tech alternatives to certain bureaucracies and becoming a prominent target for Democrat-led opposition in the process.
But a move to step back from politics would certainly be welcomed among those betting on Tesla (TSLA) stock, as TSLA has seen incredible volatility since the election. After the election, Tesla climbed roughly 75% on expectations that Musk’s company would benefit from his heavy donations to the Trump campaign. But the backlash from his government stint has caused boycotts, vandalism and protests of the electric car company. Since its December highs, the company has since retreated about 35% from the fallout.
On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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