Elon Musk on Wednesday called the media report claiming he plans to leave the Department of Government Efficiency “fake news,” after Politico reported that Donald Trump had told people inside the White House that Elon could soon return full-time to Tesla.
The same day, Tesla’s stock jumped by 5.9% after the article came out, even though the company is dealing with its worst vehicle delivery numbers since 2022.
Politico had said that Trump expected Elon to walk away from his government duties within weeks and focus again on his companies. The story quickly reached Tesla investors, who had been questioning Elon’s commitment to the electric vehicle company as sales continued to drop and new product plans remained unclear.
Press Secretary Karoline Leavitt responded to the story directly on X, saying:
“This ‘scoop’ is garbage. Elon Musk and President Trump have both publicly stated that Elon will depart from public service as a special government employee when his incredible work at DOGE is complete.”
Court blocks D.O.G.E from digging into private data
At the same time that this media drama was happening, the Trump administration was dealt a legal blow in federal court. On Tuesday, the U.S. Court of Appeals for the 4th Circuit dismissed the administration’s appeal to lift a temporary restraining order that blocks DOGE staff from getting into the Social Security Administration’s sensitive data systems.
The court said it didn’t have jurisdiction over the appeal and sent the case back to the district court, where it began. The plaintiffs, which include several large unions and retiree advocacy groups, say they will file a motion for a preliminary injunction later this week.
The temporary restraining order was originally issued by federal Judge Ellen Lipton Hollander on March 20. Her ruling banned DOGE employees and contractors from accessing federal systems that store private data, including Social Security numbers, home addresses, health records, employer and employee earnings, and tax documents. The judge also ordered DOGE to delete all private data it had collected that wasn’t properly anonymized.
The legal complaint against the Trump administration was filed by three major organizations: the American Federation of State, County, and Municipal Employees, the American Federation of Teachers, and the Alliance for Retired Americans. They argued that letting DOGE access the Social Security database would put tens of millions of Americans at risk.
Richard Fiesta, executive director of the Alliance for Retired Americans, said in a written statement:
“We are pleased the 4th Circuit agreed to let this important case continue in district court. Every American retiree must be able to trust that the Social Security Administration will protect their most sensitive and personal data from unwarranted disclosure.”
Democracy Forward, a national legal organization, is representing the plaintiffs. The group said the Trump administration didn’t follow normal legal procedures when it appealed the restraining order, and the court’s decision to throw it out proves that.
Liz Huston, speaking on behalf of the White House, said Trump still plans to fight in court. In a short emailed statement, she wrote, “The president will continue to seek all legal remedies available to ensure the will of the American people is executed.”
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