U.S. President Donald Trump has informed members of his Cabinet and close associates that billionaire ally Elon Musk will soon step away from his role in the administration, Politico reported on Wednesday, citing three sources familiar with the matter.
Musk, CEO of Tesla and SpaceX, has been serving as a special government employee, leading efforts to slash federal spending and dismantle select U.S. agencies.
According to the report, both Trump and Musk recently agreed that Musk would soon return to focus on his businesses, though no exact timeline was given.
Neither the White House, Musk's task force, nor Musk himself responded to requests for comment.
Following the news, shares of some government contractors rose. Tesla stock, which had dropped 2% earlier in the day after a sharper-than-expected decline in first-quarter deliveries, reversed course and climbed 3%.
Both Trump and Musk have hinted at the transition, though a specific departure date remains unclear.
When asked on Monday whether he wanted Musk to extend his 130-day term, Trump said: "I think he's amazing, but I also think he's got a big company to run. At some point, he's going to be going back. He wants to."
If Musk sticks to the original 130-day term, his tenure would end by late May.
Speaking to Fox News last week, Musk said he was confident he could complete most of his mission to cut $1 trillion in federal spending by then.
