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PoliticsElon Musk

Vivek Ramaswamy’s departure as DOGE co-czar removes growing political liability for Elon Musk

Christiaan Hetzner
By
Christiaan Hetzner
Christiaan Hetzner
Senior Reporter
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Christiaan Hetzner
By
Christiaan Hetzner
Christiaan Hetzner
Senior Reporter
Down Arrow Button Icon
January 21, 2025, 10:15 AM ET
Vivek Ramaswamy, former Republican presidential nominee, speaks during Donald Trump's October campaign rally in Scranton, Pennsylvania
Vivek Ramaswamy turned into a problem for Elon Musk, who has precious little time to tackle government spending before voters feel the effects.Michael M. Santiago—Getty Images
  • The Department of Government Efficiency (DOGE), led by Elon Musk after Vivek Ramaswamy’s controversial departure to pursue political office, faces legal scrutiny, criticism for potential conflicts of interest, and challenges in achieving ambitious federal spending cuts.

Work has begun at the Department of Government Efficiency (DOGE), a newly established body under President Trump’s administration, with an early focus on eliminating redundancies.

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In its first move, DOGE co-head Vivek Ramaswamy stepped down from his role, deferring to his counterpart, Tesla CEO Elon Musk. The decision streamlines leadership and removes potential overlap as the department begins its efforts.

“It was my honor to help support the creation of DOGE,” the 38-year-old biotech entrepreneur wrote on Monday. “I’m confident that Elon & team will succeed in streamlining the government.” 

Musk did not reply to his post and has not engaged with Ramaswamy since mid-December.

Ramaswamy “just burned through the bridges and he finally burned Elon,” a Republican strategist close to the Trump team told Politico.

“Everyone wants him out of [Trump’s Florida residence] Mar-a-Lago, out of D.C.”

Musk faces multiple DOGE challenges

DOGE is already under legal scrutiny amid concerns that the unofficial body could serve the interests of private business leaders (like Musk) while operating without taxpayer accountability or Congressional oversight.

Critics have raised questions about whether DOGE’s efforts might unfairly target regulatory agencies seen as obstacles to business interests of those closely connected to Trump (again, like Musk).

Musk, co-head of DOGE, recently acknowledged that the department’s initial goal of cutting $2 trillion in federal spending is overly ambitious, with estimates now closer to $1 trillion.

The initiative is likely to face significant pushback, particularly in regions where federal employment plays a major role in local economies. For instance, Alabama is home to 40,000 non-military federal employees—nearly as many as New York, despite its smaller population and lack of a major border presence like Texas.

In October, Musk predicted “temporary [economic] hardship” for Americans in October should he be placed in chargee of DOGE.

At the time, he liked to joke that he would have to beef up his personal security detail in the event that someone from the postal service might literally go postal on him.  

Political pundits have said Musk’s DOGE cost cuts could poison the reelection chances of certain congressional representatives, senators, and state governors when the November 2026 midterm elections roll around.

That’s why the unofficial body is due to expire by July of that year, cleverly timed as a 250th-birthday present to the American people.

Ramaswamy becomes a liability

With all these challenges, the last thing Musk needs is another lightning rod for controversy on his hands. Yet that is exactly what he got.

Officially, Ramaswamy is stepping down to pursue political office in Ohio, according to official statements.

However, his departure follows a series of controversies. Ramaswamy’s strong support for H-1B visas alienated portions of the MAGA base.

Adding to the backlash, Ramaswamy recently authored a commentary criticizing what he called a “culture of mediocrity” in the U.S., arguing that natural-born citizens often fail to uphold the values of hard work and meritocracy.

“Our American culture has venerated mediocrity over excellence for way too long,” he wrote, calling for a return to “hard work over laziness.”

Ramaswamy’s road to Ohio gubernatorial race

In a contest deciding which of the two co-chiefs was ultimately irreplaceable at DOGE, the winner was never in question. 

Musk, the world’s richest individual, wields significant influence within the Republican Party, aided by his ownership of X, a platform with strong ties to the MAGA movement. His loyalty to President Trump and substantial financial resources—estimated at over $400 billion—make him a formidable figure in GOP politics.

By contrast, Ramaswamy, a political newcomer, faced challenges within a party where most members adhere to Judeo-Christian traditions. While his youthful charisma set him apart from more traditional rivals, his ambitions may have outpaced his support.

Ramaswamy announced plans to focus on building a base in his home state of Ohio, potentially preparing for a gubernatorial run. “I’ll have more to say very soon about my future plans in Ohio,” he posted.

With Ramaswamy gone, Musk does lose a fall guy—someone who can investigate government loans to his competitors without it directly falling back on the Tesla CEO. But his vast wealth ensures that he can keep political opponents at bay. 

The Trump administration offered little detail on Ramaswamy’s future, stating only that he would play a “vital role in making America great again.”

Subscribe to Fortune Gulf Brief. Every Tuesday, this new newsletter will deliver clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it. Sign up here.
About the Author
Christiaan Hetzner
By Christiaan HetznerSenior Reporter
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Christiaan Hetzner is a former writer for Fortune, where he covered Europe’s changing business landscape.

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