Elon Musk Is Leaving DOGE But Don’t Celebrate Yet: His Trusted Inner Circle Remains Embedded in Government

As Elon Musk prepares to exit his high-profile role in the Trump administration’s Department of Government Efficiency (DOGE), headlines have largely focused on his departure. But behind the scenes, a more enduring influence is quietly taking root — one that ensures Musk’s legacy, priorities, and even ideologies may persist long after his official departure.

Sources inside the administration and recent reporting from Bloomberg reveal that Musk has spent his short but turbulent tenure in Washington not only slashing budgets and shaking bureaucracies, but also strategically placing trusted allies from his corporate orbit into key federal positions. These individuals — many of them longtime investors, business partners, or board members from Musk’s empire — are now poised to carry on his vision within the federal government, from Social Security to space policy.

In other words: Elon Musk is leaving, but his influence is not.

President Donald Trump confirmed earlier this week that Musk’s time as a Special Government Employee is nearing its legal limit — 130 days, a term set to expire in late May. “At some point, Elon’s going to want to go back to his company,” Trump told reporters, praising Musk’s work and intelligence.

But far from being a clean break, Musk’s exit appears more like a handoff. As Bloomberg first reported, Musk has installed a cadre of loyalists into powerful roles within DOGE and other agencies, ensuring that his corporate mindset — and his grip on digital and policy levers — remains in place.

Whether this transition constitutes a smart infusion of private-sector innovation or a dangerous consolidation of influence is already becoming a point of heated debate.

Antonio Gracias

One of the most prominent figures remaining in government is Antonio Gracias, a longtime Musk ally and one of the early investors in both Tesla and SpaceX. Gracias is the founder of Valor Equity Partners, a private equity firm that has deeply intertwined business interests with Musk’s ventures.

Gracias is now reportedly embedded within the Social Security Administration (SSA) — a surprising placement for someone whose background is in finance, not public policy or social insurance. Critics argue that Gracias’ role could open the door to privatization efforts or structural reforms more aligned with market efficiency than public welfare.

Jared Isaacman

Perhaps the most high-profile of the Musk loyalists is Jared Isaacman, founder of Shift4 and a billionaire investor who poured over $25 million into SpaceX. According to Bloomberg, Isaacman has been tapped to become the next NASA administrator, a nomination that will require Senate confirmation.

Isaacman, who flew on SpaceX’s all-civilian spaceflight mission, has been outspoken in his support for privatized space exploration. If confirmed, he would oversee a federal agency with a long tradition of scientific independence — a culture that may clash with his corporate-first worldview.

Joe Gebbia

Also among the names reported is Joe Gebbia, co-founder of Airbnb and a current member of Tesla’s board of directors. Gebbia has already begun his work at DOGE and posted on X (formerly Twitter), “My first project at DOGE is improving the slow and paper-based retirement process.”

His presence at DOGE signals an effort to apply tech-industry problem-solving to deeply entrenched federal systems. But critics argue that digital disruption isn’t always what government needs — especially in areas that involve sensitive personal data and long-term policy implications.

Michael Grimes

Then there’s Michael Grimes, another trusted Musk insider who advised him during his controversial acquisition of X. Grimes now holds a position in the Department of Commerce, and according to Bloomberg, he is expected to lead a planned U.S. sovereign wealth fund — a massive financial undertaking that would place him at the center of economic and industrial strategy.

Grimes’ background in tech deals and mergers raises alarms for some economists, who worry about private-sector dominance over government investment tools. “It’s not just about efficiency anymore,” said one former Treasury official. “It’s about who controls the flow of capital — and to what end.”

Elon Musk once famously quipped that “the final step of DOGE is to delete itself.” That line, originally intended to highlight the anti-bureaucratic ethos behind the department, now seems more ironic than prophetic.

Musk’s short tenure was marked by aggressive cuts across major federal agencies, including USAID, the Department of Education, and the Consumer Financial Protection Bureau. His moves triggered protests — including some violent attacks on Tesla vehicles — and polarized opinions across the country.

While Musk may be stepping back, the infrastructure of influence he leaves behind suggests that DOGE won’t disappear anytime soon. Rather, it may evolve into a new kind of federal outpost — one driven not by public servants but by venture capitalists, disruptors, and technocrats with deep ties to Musk’s corporate empire.

This emerging network of influence is raising serious questions in Washington — and not just from Musk’s ideological opponents.

Ethics experts are already raising concerns about conflicts of interest, particularly given Musk’s ongoing leadership roles at Tesla, SpaceX, Neuralink, and X. If his former business partners now hold high-level government clearance and access to sensitive databases, critics argue, the separation between public service and private interest begins to blur dangerously.

“It’s the revolving door on steroids,” said Norman Eisen, a former White House ethics lawyer. “You now have a situation where government policy could be indirectly shaped by the private interests of one man’s inner circle — long after that man has left the building.”

Others point out the potential national security risks. With Isaacman heading to NASA and Grimes managing potential sovereign investment funds, questions are being raised about data access, space policy, and the role of private capital in federal decision-making.

For Donald Trump, Musk’s brief yet impactful stint in government has been both a political and symbolic victory. By tapping one of the world’s most recognized innovators, Trump sent a message about his administration’s willingness to shake up the “deep state” and bring entrepreneurial muscle into government.

But the decision to allow Musk to seed his allies into long-term positions may prove riskier than initially imagined.

Already, Democratic lawmakers are drafting legislation that would increase oversight of SGE placements and tighten rules around post-employment conflicts of interest. There are also early calls for congressional hearings into the influence of Musk-linked personnel within federal agencies.

Elon Musk may be stepping away from his official role in DOGE — a departure required by law, not sparked by scandal. But the quiet placement of loyal insiders into lasting roles across the federal government reveals a far more strategic play.

"Rather than simply exiting, Musk appears to be embedding a network designed to carry out his vision of efficiency, disruption, and long-term influence across key areas of the federal government.

So no, this is not the end of Musk’s influence in Washington.

It may only be the beginning.