Elon Musk’s net worth rebounds as Tesla’s valuation surges $158B after his DOGE exit. Explore the impact of his government role on Tesla and his fortune.
Elon Musk’s high-profile stint as head of the Department of Government Efficiency (DOGE) under President Donald Trump’s administration has been a rollercoaster for both his public image and his personal fortune. As Musk steps back from his controversial role, Tesla’s valuation has reportedly surged by $158 billion, signaling a potential recovery for the electric vehicle giant and its CEO’s net worth.
A Costly Tenure at DOGE
Musk’s appointment as DOGE chief in January 2025 was met with both fanfare and skepticism. Tasked with slashing federal spending by $2 trillion, Musk’s aggressive cost-cutting measures, including mass firings and contract cancellations, sparked widespread backlash. The initiative, named after the cryptocurrency Dogecoin, aimed to streamline government operations but faced criticism for disrupting essential services and yielding far less savings than promised. Reports indicate DOGE saved $160 billion, a fraction of the initial goal, with some estimates suggesting costs of $135 billion due to rehiring and lost productivity.
The fallout extended beyond Washington. Tesla, the cornerstone of Musk’s $370-$387 billion net worth, suffered significantly. A 13% sales slump and a 71% profit drop in Q1 2025, coupled with a 25-33% decline in Tesla’s stock price, shaved approximately $113 billion off Musk’s fortune by April, according to Bloomberg and Forbes. Protests at Tesla dealerships and vandalism of Tesla vehicles, driven by Musk’s polarizing political involvement, further tarnished the brand.
A Strategic Retreat and Market Rebound
In late April 2025, Musk announced he would scale back his DOGE involvement to focus on Tesla and his other ventures, including SpaceX and xAI. This pivot appears to have reassured investors. According to Fortune, Tesla’s valuation rebounded by $158 billion as Musk signaled a return to steering his companies full-time. Posts on X and market analyses suggest Tesla’s stock surge contributed to Musk’s net worth recovering to between $381 billion and $424.7 billion by May 30, 2025.
Analysts attribute this rebound to renewed confidence in Musk’s leadership at Tesla. “If he backs away, memories fade,” said Eric Schiffer, chair of Patriarch Organization, in a Newsweek interview. “Innovation and new products can recalibrate people’s view of his brand.” Musk’s reduced DOGE role, now limited to one or two days a week, has allowed him to refocus on Tesla’s growth, including advancements in autonomous driving and energy storage.
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DOGE’s Legacy and Musk’s Future
While Musk claims DOGE saved $160 billion, critics argue the initiative’s chaotic approach—described as a “shoot first, ask questions later” strategy—incurred significant costs. A Senate report highlighted $2.37 billion in potential conflicts of interest, suggesting Musk may have used his influence to shield his companies from regulatory scrutiny. The revival of 44 canceled government contracts, costing $220 million, further undermined DOGE’s reported savings.
As Musk transitions to a strategic advisory role for Trump, DOGE’s future remains uncertain, with Russ Vought, a key figure in Project 2025, taking the helm. For Musk, the focus is clear: restoring Tesla’s market dominance and repairing his public image. Whether this valuation surge marks a turning point or a temporary reprieve, Musk’s DOGE chapter underscores the delicate balance between political ambition and business success.