Billionaire entrepreneur Elon Musk is preparing to step away from his role in the U.S. government under President Donald Trump. According to Politico, which cited three sources close to the situation, Musk and Trump have mutually agreed that the Tesla and SpaceX CEO will soon return to his business ventures.
Over the past few months, Musk has been serving as a special government employee, tasked with spearheading efforts to cut federal spending and restructure various government agencies.
His appointment was part of a broader initiative by Trump to reduce government expenditures, with a staggering goal of slashing $1 trillion in federal spending.
Musk’s involvement has been a significant talking point, given his vast business empire and his stance on government intervention. His role was always intended to be temporary, with an initial 130-day term set to conclude by the end of May.
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While he has been instrumental in leading the cost-cutting measures, recent discussions suggest that he will soon transition back to focusing on Tesla, SpaceX, and his other ventures.
Both Trump and Musk have hinted at this transition in recent statements, though they have not provided an exact departure date. Speaking to reporters on Monday, Trump acknowledged Musk’s contributions but emphasized the entrepreneur’s growing responsibilities outside of government.
“I think he’s amazing, but I also think he’s got a big company to run,” Trump stated. “At some point, he’s going to be going back. He wants to.”
Musk, too, expressed confidence in the progress made under his leadership, telling Fox News last week that he was optimistic about completing most of the cost-cutting measures before his departure.
News of Musk’s impending exit has had immediate effects on the stock market. Shares of companies involved in government contracting saw gains following the report, likely in anticipation of policy shifts.
Interestingly, Tesla’s stock, which had been down earlier due to disappointing first-quarter delivery numbers, reversed course and climbed 3% after the news broke.
As Musk prepares to exit his government role, questions remain about the long-term impact of his cost-cutting initiatives and whether his departure will influence Trump’s economic strategy moving forward. For now, it appears that Musk is gearing up to refocus his attention on the tech and space industries, where his influence remains undeniable.
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