Elon Musk Hints at Leaving DOGE by May, as X Merges with xAI Amid Backlash

Elon Musk might be done with DOGE—and no, we’re not talking about the meme coin. In a recent interview with Fox News, Musk suggested he could be leaving his position at the Department of Government Efficiency (DOGE) by the end of May, marking the latest in a long line of high-profile shifts across his business empire.

Musk, who currently serves as a special government employee (SGE), is technically only in the role for 130 days max, which would place his end date around May 30. However, when asked if he’d stay beyond that, he was pretty vague, stating:

“I think we will have accomplished most of the work required to reduce the deficit by a trillion dollars within that timeframe.”

The move comes amid increasing backlash against Musk’s companies, from Tesla’s tanking sales to growing boycotts of SpaceX’s Starlink. And in a major shake-up, Musk’s xAI startup just announced it’s acquiring X (formerly Twitter) in an all-stock deal valuing the companies at a combined $113 billion.

Musk’s DOGE Tenure: Budget Cuts & Controversy

Since stepping into his government efficiency role, Musk has been on a cost-cutting rampage. While he claims the goal is to shrink the deficit by a trillion dollars, his methods—including aggressive job cuts and AI-driven automation—have sparked protests and legal battles.

Defending his approach, Musk told Fox News:

“They may characterize it as shooting from the hip, but it is anything but that. Which is not to say that we don’t make mistakes.”

But public sentiment is shifting, especially for Tesla.

Tesla’s Reputation Takes a Dive

Musk’s government role has hurt Tesla’s image, particularly among liberal consumers. A YouGov report found that Americans are now 12.8% more likely to view Tesla negatively, a figure that jumps to 35% among liberals.

And the sales numbers aren’t great either:

• US Tesla sales fell 11% year-over-year.
• Germany saw a shocking 76% drop in February 2025 compared to the previous year.
• Tesla’s market value has nosedived by $700 billion since its December 2024 peak of $1.54 trillion.

Meanwhile, Musk’s support for Germany’s far-right AfD party hasn’t helped his case, with many European consumers turning away from Tesla altogether.

SpaceX & Starlink: Backlash Over Ukraine

Musk’s SpaceX is also taking heat, especially over Starlink’s wavering support for Ukraine. Uncertainty about whether the service would remain available for Ukrainian forces has led to growing boycott calls on social media.

X & xAI Merge in a Billion-Dollar Deal

In one of the biggest shake-ups, Musk announced Friday that his AI startup, xAI, is acquiring X (formerly Twitter) in a massive all-stock transaction:

• xAI is valued at $80 billion
• X is valued at $33 billion (or $45 billion, including debt)

Musk called it a “natural evolution”, tweeting:

“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution, and talent.”

This move positions xAI as a serious competitor in the AI race, particularly against OpenAI and Google DeepMind. The merger could see X transition further into an AI-driven platform, integrating more automation into its daily operations.

With Musk’s DOGE tenure possibly ending in May, all eyes are on whether he actually follows through (he has a history of backing out of “exit” promises). Meanwhile, he’s doubling down on xAI and AI-focused projects, even as Tesla and SpaceX struggle with public trust issues.

One thing’s for sure: Musk isn’t slowing down anytime soon.