Tesla CEO Elon Musk file photo
Credit: Reuters Photo
Elon Musk, the world's richest man, who spearheaded Donald Trump re-election as the 47th President of the United States, has announced that he is leaving his role as a special government employee and the head of the Department of Government Efficiency (DOGE).
This comes amid protests, both inside the US and in several other countries, against DOGE's decisions to cut fundings across several US government departments, which have also led to dwindling sales of Tesla, his e-vehicle company.
Here we take a look at some of his contributions and controversies as part of the US government:
Achievements:
1) DOGE leadership
Musk was the main man behind the setting up of DOGE, which also had Indian-American Republican Vivek Ramaswamy as its co-head. Under Musk's leadership, DOGE implemented sweeping changes in US fund allocation to institutions, both within the country and abroad. The major impact has been on the United States Agency for International Development (USAID), which has been alleged by Musk and Trump of fraud as well as wasteful spending. The US government will most likely merge the remaining programmes of USAID into the State Department and close this agency permanently.
2) A staunch advocate of fiscal responsibility
Musk, soon after his appointment as a co-head of DOGE, went head-first into curbing US government expenditure. He went on to claim that DOGE would save up to $2 trillion for the US government, but the agency later claimed it would be something around $160 billion.
3) Attention to government reforms
Musk calling out the clutter in the functioning of the US government has brought attention to government red tape that stalls work. His streamlining of the federal government workforce might help save money now, but its real effects will only be felt in the days to come.
Controversies:
1) Conflict of interest concerns:
The first major concern of many observers was that if Musk decides to have a say in how the US government functions, it will create a conflict of interest with his businesses, especially SpaceX, which holds a number of government contracts. Questions were also raised on the lack of Senate confirmation of his appointment.
2) Disputed savings figures:
Although DOGE has been claiming that it has managed to save $160 billion through its cost-cutting measures, a BBC analysis has claimed that only $61.5 billion of this has been itemised and a mere $32.5 billion has documentation to support the same. There were also reports of significant erroneous figures. In one case, an $8 million contract was reported to be worth $8 billion.
3) Tesla faces the brunt
The tycoon's political involvement also cost his companies dearly, and the one which faced the most heat was Tesla. In Europe, the 'Tesla takedown' movement became very popular, leading to a 49 per cent decline in European sales.
4) Tussles with Trump officials
Musk also did not have a smooth relationship with other members of Trump's close circle, especially the President's advisor on trade, Peter Navarro. Not someone to mince words, Musk has called Navarro "dumber than a sack of bricks", and "truly a moron". He also had a public fall out with Treasury Secretary Scott Bessent, who repeatedly shouted "F*** You" to the world's richest man in the West Wing.