Karoline Leavitt blasts bombshell report claiming Elon Musk leaving Trump admin: 'This scoop is garbage'

WASHINGTON, DC: The rumor mill went into overdrive on Wednesday, April 2, after a bombshell report surfaced claiming that Elon Musk was stepping down from his role as head of the Department of Government Efficiency (DOGE).

But both Musk and the White House have staunchly denied it. 

With Politico and other outlets running with the story that President Donald Trump had supposedly “informed his inner circle” of Musk’s impending departure, the tech billionaire and his allies called the report nothing but bogus clickbait.

White House hits back at 'garbage' report 

White House press secretary Karoline Leavitt wasted no time in shutting down the so-called bombshell scoop.  

“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," she posted on X (formerly Twitter).

Musk himself also chimed in. Taking to X, the tech billionaire dismissed the reports as pure nonsense, branding them as “fake news.” 

Earlier that day, Politico claimed Trump had told Cabinet members and close allies that Musk’s White House stint was ending soon. According to the report, Musk and Trump had recently agreed that it was time for him to step back from government and return full-time to his empire.

Politico went even further, suggesting that some in Trump’s inner circle viewed Musk as more of a liability than an asset, especially after his highly publicized (and failed) attempt to boost a conservative judge in Wisconsin. 

“Musk’s looming exit comes as some Trump administration insiders and many outside allies have become frustrated with his unpredictability and increasingly view the billionaire as a political liability," the outlet reported.

It also claimed that the honeymoon between Musk and Trump was officially over, after White House insiders were confident just a month ago that Musk was "here to stay" and that Trump would find a way around the 130-day limit on his temporary government position.

Will Elon Musk really leave the Donald Trump administration? 

While some in Donald Trump’s camp might be eager to see Elon Musk exit stage left, others say he’s not going anywhere—at least, not entirely.

According to one senior administration official, Musk will likely retain an informal advisory role and still make appearances at 1600 Pennsylvania Avenue. They told Politico that anyone assuming Musk is going to fully disappear from Trump’s orbit is only "fooling themselves.”

Insiders believe that Musk’s special government employee status is set to expire by late May or early June. The designation has allowed him to bypass certain ethics and conflict-of-interest rules, but it also comes with an ironclad 130-day deadline that is approaching fast.

Some of Musk’s defenders within the administration say his mission is nearly complete, arguing that there’s only so much government fat left to trim before it starts cutting into the bone.

But others think Musk has become a wild card—one who frequently goes rogue on social media, dropping unfiltered takes that send the White House into panic mode.

Many Trump allies "say he’s an unpredictable, unmanageable force who has had issues communicating his plans with Cabinet secretaries and through the White House chain of command led by Chief of Staff Susie Wiles, frequently sending them into a frenzy with unexpected and off-message comments on X," Politico reported.

This comes as Musk’s business empire also took a hit amid the controversy. Shares of Tesla fell 2% in early trading on Wednesday, sparking speculation that investors weren’t thrilled about the drama surrounding Musk’s government gig.

What Donald Trump and Elon Musk have said about the latter's potential exit 

While the media was busy fueling speculation, Donald Trump himself set the record straight. “I think Musk has been amazing, but I also think he’s got a big company to run… And at some point, he’s going to be going back. He wants to," he said.

But Trump isn’t exactly eager to let Musk walk away. “I’d keep him as long as I could keep him," he insisted.

Meanwhile, Musk hinted just weeks ago that he wasn’t done yet.

When Fox Business’ Larry Kudlow asked if he planned to stay on for another year, Musk said: “Yeah, I think so.”