Government official associated with Elon Musk, involved in DOGE project, resigns
In a recent turn of events, Antonio Gracias, a longtime ally of Elon Musk and the founder of Valor Equity Partners, has stepped down from his volunteer role in the Trump administration's Department of Government Efficiency (DOGE) project earlier than anticipated. Gracias' departure comes amidst criticism from the American Federation of Teachers (AFT) and calls for public pension funds to review their dealings with Valor Equity Partners.
Gracias, who was previously involved in the DOGE effort, served as a special government employee working approximately 80 hours per week. His tenure in the project was less than 130 days. The AFT, led by President Randi Weingarten, has expressed concerns that Gracias and other Valor employees neglected their stewardship duties in favor of intensive work on the DOGE project.
Gracias is well-known for his association with Musk, having served as a Tesla director from 2007 to 2021, including as Lead Independent Director for eight years. During his tenure, Gracias played a significant role in taking Tesla public. Valor Equity Partners, Gracias' firm, holds investments in several companies associated with Musk, such as Space Exploration Technologies (SpaceX).
The AFT, whose members' retirements are invested in these pension funds, has sent letters to nine major public pension funds, urging them to review their dealings with Valor Equity Partners. The letters highlight the concerns about Gracias and other Valor employees' alleged neglect of fiduciary responsibilities while involved in the DOGE project. Weingarten also expressed disappointment that it required investor pressure to prompt Gracias to leave DOGE and refocus on his business.
In addition to the AFT's criticism, Gracias and Musk have faced scrutiny for their controversial claims regarding Social Security payments to deceased individuals, which they made publicly in March 2025. This incident further fueled criticism from the AFT and other observers.
Despite the controversy, Gracias remains the founder, CEO, and Chief Investment Officer (CIO) of Valor Equity Partners. He is also a director of several Valor Equity Partners' portfolio companies, including SpaceX, WEKA, and Zipline. The AFT, however, has encouraged Gracias' abandonment of his involvement with DOGE.
In summary, Antonio Gracias, a longtime ally of Elon Musk and the founder of Valor Equity Partners, has stepped down from his volunteer role in the Trump administration's DOGE project amidst criticism and calls for public pension funds to review their dealings with Valor Equity Partners. Gracias remains the CEO and CIO of Valor Equity Partners and continues to serve as a director of several portfolio companies, including SpaceX. The AFT, whose members' retirements are invested in these pension funds, has expressed concerns about Gracias and other Valor employees' alleged neglect of fiduciary responsibilities while involved in the DOGE project.
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- The American Federation of Teachers (AFT) has urged nine major public pension funds to review their investments in Valor Equity Partners, as Gracias and other Valor employees are accused of neglecting their stewardship duties.
- Antonio Gracias' business, Valor Equity Partners, has investments in several companies associated with Elon Musk, such as Space Exploration Technologies (SpaceX), and Gracias remains the CEO and Chief Investment Officer of Valor Equity Partners.
- Criticism from the AFT and other observers extends beyond Gracias' departure from the Trump administration's DOGE project, with concerns also raised about his controversial claims regarding Social Security payments to deceased individuals publicly made in March 2025.
- While serving as a special government employee on the DOGE project, Gracias and other Valor employees were reportedly working more than their stipulated hours, causing the AFT to speculate about neglected fiduciary responsibilities towards pension funds in which their members' retirements are invested.
