US President Donald Trump told his "inner circle" that billionaire Elon Musk would soon play a reduced role in the US government, according to reports by magazine Politico and broadcaster ABC News on Wednesday.
Musk, whose companies include Tesla, the X social media platform and SpaceX, has been leading efforts cut US government spending and dismantle several federal agencies as head of the so-called Department of Government Efficiency (DOGE). Still, reports say his approach has divided top Trump aides.
White House press secretary Karoline Leavitt, however, called the Politico report "garbage."
"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," she wrote in a post on X.
Earlier this week, Trump told reporters Musk would "at some point" return to his companies.
"I think he's amazing, but I also think he's got a big company to run," Trump said. "At some point, he's going to be going back. He wants to."
Lawmakers, investors worried by Musk's gov't position
There has been an increasing discomfort among US lawmakers over Musk's approach to cutting tens of thousands of workers from the government workforce. The public has also voiced its opposition to the power Musk, who was not elected, has over the makeup of the federal government.
Tesla investors have complained that Musk's work for DOGE has distracted him from his obligations as CEO of the company.
Tesla's stock has fallen by about half since hitting a mid-December high after hopes that cuts to regulations could bring higher profits were dampened by concerns about a possible Tesla boycott over Musk. On Wednesday, Tesla reported a 13% drop in sales in the first quarter of 2025.
Musk is a "special government employee," meaning his appointment cannot last more than 130 days. His term would be up at the end of May — if the deal was not extended.
Edited by: Jenipher Camino Gonzalez
Author: Sean Sinico (with Reuters, AP, DPA)
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