Elon Musk exits government role, refocuses on Tesla and X after data center failure
By isabelle // 2025-05-26
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  • Elon Musk has resigned as head of the Department of Government Efficiency (DOGE) to refocus on his private ventures, including X, Tesla, and SpaceX, citing urgent operational challenges.
  • A data center fire at X exposed critical infrastructure failures, prompting Musk to prioritize fixing platform instability and overseeing upcoming Tesla and SpaceX milestones.
  • During his DOGE tenure, Musk reportedly saved taxpayers $150 billion through aggressive cost−cutting.
  • Tesla faces declining sales and layoffs, while X struggles with advertiser boycotts and technical issues, though some brands are returning.
  • Musk’s return to private-sector leadership highlights the tension between corporate and political roles, with investors questioning his ability to manage multiple high-stakes ventures.
Tech billionaire Elon Musk has officially stepped down from his role as head of the Department of Government Efficiency (DOGE), refocusing his efforts entirely on his private ventures, including X (formerly Twitter), Tesla, and SpaceX. His departure follows a series of operational challenges at X, including a data center fire that exposed critical backup system failures. Musk’s exit marks the end of a tenure that reportedly saved taxpayers $150 billion — roughly $932 per citizen — through aggressive cost-cutting measures.

A sudden shift back to private sector leadership

In a post on X over the weekend, Musk announced his return to a "24/7" work schedule, stating, "Back to spending 24/7 at work and sleeping in conference/server/factory rooms." He cited urgent technical issues at X and upcoming milestones at Tesla and SpaceX as primary reasons for his departure from government service. "I must be super focused on /xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out," Musk wrote. "As evidenced by the uptime issues this week, major operational improvements need to be made. The failover redundancy should have worked, but did not." The outage Musk referenced stemmed from a battery fire at an X data center in Hillsboro, Oregon, which disrupted platform performance for tens of thousands of users globally. While no injuries were reported, the incident highlighted vulnerabilities in X’s infrastructure — a problem Musk now aims to address directly. Musk’s tenure at DOGE, a federal initiative launched under President Donald Trump to eliminate government waste, was marked by aggressive contract terminations and regulatory overhauls. According to internal reports, the agency achieved $150 billion in savings, with Health and Human Services, the Department of Education, and the General Services Administration leading the charge. Among the most significant cuts was the cancellation of a $2.9 billion refugee resettlement contract. Despite these successes, Musk acknowledged limitations in DOGE’s impact. "In the grand scheme of things, I think we’ve been effective," he told reporters earlier this week, but "not as effective as I’d like." His departure signals a return to the "start-up" intensity of his private companies, which he described as requiring his full attention.

Challenges ahead for Musk’s empire

Musk’s decision comes at a pivotal moment for his businesses. Tesla faces declining sales and layoffs exceeding 10% of its workforce, including the shutdown of its Supercharger division. Meanwhile, X continues to grapple with advertiser boycotts and technical instability, though reports suggest some major brands are returning amid Musk’s alignment with Trump’s political resurgence. SpaceX’s upcoming Starship launch adds another layer of urgency, with Musk emphasizing the need for "critical technologies" to roll out smoothly. Investors have expressed concerns over Musk’s divided focus, particularly as Tesla’s stock struggles and protests mount over his political affiliations. Musk’s exit from DOGE underscores a broader trend: the collision of corporate leadership and political activism. His work for the Trump administration drew backlash, including anti-Tesla protests, while his outspoken views on free speech and government transparency have polarized audiences. Now, with his return to private-sector leadership, Musk appears determined to stabilize his companies — repairing X’s infrastructure, reviving Tesla’s market position, and ensuring SpaceX’s ambitious timelines stay on track. Whether his hands-on approach can reverse these challenges remains to be seen, but Musk is clearly betting big on his ability to multitask under pressure. Sources for this article include: YourNews.com FoxBusiness.com Reuters.com
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