By Abijohn Good morning! It’s Thursday, May 29, 2025, and this is The Morning Shift, your daily roundup of top automotive headlines. Today, we cover Elon Musk’s exit from the federal government, Nissan’s discontinuation of the five-speed Versa, German automakers seeking reconciliation with Trump, and Toyota’s continued success.
1st Gear: Elon Musk Leaves the Trump Administration
Billionaire Tesla CEO Elon Musk has officially departed the Trump administration, concluding months of controversy and internal disagreements. Musk’s stated objective was to streamline federal agencies by reducing government positions, but his efforts to significantly cut jobs largely did not materialize.
On May 28, a White House spokesperson confirmed that Musk’s “off-boarding will begin tonight.” Earlier in the week, Musk used social media to express gratitude to President Trump as his tenure as a special government employee with the Department of Government Efficiency (DOGE) concluded.
Musk’s departure was swift and unceremonious, occurring without a formal conversation with President Trump, according to a source familiar with the matter. The decision was reportedly made “at a senior staff level.” His exit came a day after he publicly criticized Trump’s recent tax bill, deeming it too costly and potentially detrimental to his work with the U.S. DOGE Service. This criticism reportedly displeased some senior White House officials, including Deputy Chief of Staff Stephen Miller, prompting the White House to reassure Republican senators of Trump’s support for the tax package.
While Musk reportedly maintains a close relationship with the President, his standing within the administration had gradually diminished.
During his campaigning efforts and significant financial contributions to Trump’s initiatives, Musk had projected that DOGE could achieve at least $2 trillion in federal spending cuts. This ambitious target was not met; DOGE currently reports savings of $175 billion, a figure the article suggests should be viewed with skepticism.
Tensions for Musk reportedly began shortly after President Trump took office on January 20. Some cabinet members who initially welcomed Musk’s outsider approach grew wary of his methods. They became more confident in resisting his proposed job cuts, bolstered by Trump’s reminder in early March that staffing decisions were ultimately the responsibility of department secretaries, not Musk.
Musk reportedly clashed with key cabinet members, including Secretary of State Marco Rubio, Transportation Secretary Sean Duffy, and Treasury Secretary Scott Bessent. He also reportedly insulted Trump’s trade adviser, Peter Navarro.
Around the same time, Musk began to hint at his impending departure from government, expressing frustration over his inability to more aggressively cut spending. In a conference call last month, Musk indicated he would significantly reduce his government involvement to focus on his various businesses. He recently told journalists that federal bureaucracy was “much worse than I realized.”
The future of DOGE remains uncertain. While it may continue to pursue Musk’s vision, its effectiveness without his direct involvement is questionable, given its limited impact even during his active tenure.