Tesla could become collateral damage in Elon Musk’s D.O.G.E crusade

Source Cryptopolitan

Tesla is backed into an uneasy spot as CEO Elon Musk juggles his core roles at the electric vehicle-making company and his expanding portfolio of government responsibilities at the Department of Government Efficiency (D.O.G.E). 

Tesla stocks have fallen by about 20% since Trump’s inauguration and over 30% from a closing high of $480 per share in December 2024. 

As President Donald Trump’s administration intensifies its effort to reduce government costs through D.O.G.E, critics worry that Musk’s focus on reforming federal bureaucracy may distract him from Tesla’s operational imperatives. 

TSLA dips as Elon Musk’s D.O.G.E role grows

Investors and industry analysts alike are increasingly concerned about the political risks and bureaucratic controversies swirling around Musk’s involvement in the Department of Government Efficiency (D.O.G.E), which could negatively impact Tesla’s revenue performance. 

TSLA initially surged following its fourth-quarter earnings report on January 29 but has since reversed course. 

Tesla stocks (TSLA) look poised to end a five-day losing streak, rising 1% to 332.60 at the market open. However, on Tuesday, the shares dropped 6.3% to 328.50, reaching its lowest level since late November 2024. 

After last week’s sell-off, the stock has fallen below the recent consolidation. Analysts are now reevaluating their price target, citing Tesla’s Q4 result and Musk’s political involvement with the Trump administration as reasons for the tempered projections. 

Musk’s ventures include Tesla, SpaceX, and xAI. He also heads D.O.G.E, the government agency tasked with slashing wasteful government expenditure and modernizing federal technology. On top of all that, he recently placed a $97.5 billion bid for OpenAI.

Musk’s ability to multitask has often been applauded as one of his strengths. However, the extent of his current commitments is unprecedented. Tesla, which has been on a decline, now faces queries that its CEO’s divided attention could further weaken its competitive edge and profitability. 

Analysts have likened his current political engagement and recent bid for OpenAI as distractions, likening recent events to how Musk’s publicly chronicled acquisition of Twitter negatively impacted TSLA’s performance. 

On the other hand, another set of investors argue that his involvement in D.O.G.E could help break regulatory barriers.

D.O.G.E may be a tool for bureaucratic overreach

DOGE’s operational tactics have raised questions. A former Tesla engineer, Tom Krause, now a DOGE operative, reportedly sought administrative access to critical federal technology, a move which could breach standard security protocols and risks exposing sensitive government systems. 

Officials said the request was unusual and goes against established safeguards, warning that such overreach would erode the essential cybersecurity measures put in place to protect taxpayer data. 

A federal judge issued a temporary restraining order, which prevents political appointees and special government employees from accessing sensitive and confidential information stored in the Treasury Department. 

White House spokesperson, Harrison Fields responded to the restraining order saying it is absurd and judicial overreach.

This comes amid aggressive federal workforce cuts mandating that agencies hire no more than one new employee for every four that leave, which has unsettled many government workers. The combination of security lapses and drastic downsizing intensifies concerns that Musk’s crusade for efficiency may destabilize government operations, potentially impacting companies like Tesla that rely on a stable regulatory environment. On the other hand, access to core technological services could be a form of industrial espionage, which would bring Tesla’s ethics into question.

Cryptopolitan Academy: Are You Making These Web3 Resume Mistakes? - Find Out Here

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Forex Today: US Dollar selloff pauses ahead of NFP, Powell speechAfter suffering large losses against its peers on Thursday, the US Dollar (USD) holds its ground early Friday as investors move to the sidelines ahead of key events.
Author  FXStreet
14 hours ago
After suffering large losses against its peers on Thursday, the US Dollar (USD) holds its ground early Friday as investors move to the sidelines ahead of key events.
placeholder
Gold price hovers $3,100; bullish bias remains ahead of US NFP reportGold price (XAU/USD) struggles to capitalize on the previous day's late rebound from the $3,054 area, or a one-week low, and attracts fresh sellers during the Asian session on Friday.
Author  FXStreet
16 hours ago
Gold price (XAU/USD) struggles to capitalize on the previous day's late rebound from the $3,054 area, or a one-week low, and attracts fresh sellers during the Asian session on Friday.
placeholder
Nonfarm Payrolls forecast: US job growth set to ease in March amid economic uncertaintyThe all-important United States (US) Nonfarm Payrolls (NFP) data for March will be released by the Bureau of Labor Statistics (BLS) on Friday at 12:30 GMT.
Author  FXStreet
16 hours ago
The all-important United States (US) Nonfarm Payrolls (NFP) data for March will be released by the Bureau of Labor Statistics (BLS) on Friday at 12:30 GMT.
placeholder
AUD/USD plummets below mid-0.6200s as trade-war fears lift RBA rate cut betsThe AUD/USD pair comes under intense selling pressure during the Asian session on Friday and retreats further from a nearly three-week high, around the 0.6400 neighborhood touched the previous day.
Author  FXStreet
16 hours ago
The AUD/USD pair comes under intense selling pressure during the Asian session on Friday and retreats further from a nearly three-week high, around the 0.6400 neighborhood touched the previous day.
placeholder
WTI struggles near multi-week low, below $66.00 amid rising trade tensionsWest Texas Intermediate (WTI) US Crude Oil prices trade with negative bias for the fourth straight day on Friday and slide back below the $66.00/barrel mark during the Asian session.
Author  FXStreet
16 hours ago
West Texas Intermediate (WTI) US Crude Oil prices trade with negative bias for the fourth straight day on Friday and slide back below the $66.00/barrel mark during the Asian session.
goTop
quote