Tesla Inc. CEO and billionaire Elon Musk has proposed an extreme spending cut and restructuring initiative for the U.S., suggesting the deletion of entire agencies.
What Happened: During a video call to the World Governments Summit hosted by the United Arab Emirates' Artificial Intelligence Minister Omar Sultan Al Olama in Dubai, Musk stated "I think we do need to delete entire agencies, as opposed to leave part of them behind … It's kind of like leaving a weed."
He then likened the situation to weeds, saying that merely cutting them back allows them to regrow easily. However, removing the roots doesn't guarantee they'll never return, but it significantly reduces the chances of them growing back, reported the AP News on Thursday.
In addition, he discussed the Trump administration’s priorities, frequently mentioning “thermonuclear warfare” and potential artificial intelligence dangers.
With President Donald Trump‘s approval, Musk, who now leads the Department of Government Efficiency (DOGE), criticized the bureaucracy’s dominance over democracy. He took a more isolationist approach to American influence in the Middle East, stating that under Trump, the U.S. is “less interested in interfering with the affairs of other countries.”
SEE ALSO: Tesla Stock Climbs Over 2% In Thursday Pre-Market: What’s Going On?
Why It Matters: Musk’s call for radical spending cuts comes amid increased scrutiny of politicians’ stock and options trading activity. Earlier, Musk had questioned the wealth of Congress members. He pointed out that members of Congress could trade stocks, options, and cryptocurrencies, provided they disclose the transactions timely. This trading activity has raised conflict of interest concerns, as it often appears to be based on non-public knowledge and sometimes involves stocks related to government-funded contracts.
On Tuesday, Elon Musk also made an appearance at the White House standing alongside President Trump to address the media. Musk described DOGE's work as "common sense" and "not draconian or radical." He also said that they've found "shocking" proofs of wasteful expenditure and defended the extensive spending cuts.
In the video call, Musk also unveiled plans for a “Dubai Loop” project, related to the tunnel-digging project in Las Vegas with the Boring Company. However, no immediate details were provided.
Regarding AI, Musk stated that he expects X's newly updated AI chatbot, Grok 3, to be ready in approximately two weeks, calling it "kind of scary." He also criticized Sam Altman's OpenAI comparing it to a non-profit dedicated to protecting the Amazon rainforest turning into "lumber company that chops down the trees."
The shares of Elon Musk’s Tesla have been on a decline since President Trump’s inauguration, and after Musk officially joined the DOGE. Tesla stock tumbled over 16% over the past month.
- READ MORE: Super Micro Rides AI Server Boom, Analysts See Big 2026 Growth Despite Near-Term Challenges
Image Via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.