Tesla Inc. TSLA and SpaceX CEO Elon Musk has defended his involvement with the Department of Government Efficiency. He said DOGE's primary function is to ensure that the administration's executive orders are implemented.
What Happened: During an interview with Fox News that was made public on Tuesday, Musk described his role as providing tech support for President Donald Trump.
"What we're doing here… is making sure that presidential executive orders are actually carried out," Musk said, adding, "If the bureaucracy is fighting the will of the people and preventing the president from implementing what the people want, then what we live in is a bureaucracy and not a democracy."
Musk specifically cited efforts to halt taxpayer-funded luxury hotels for undocumented immigrants, stating that DOGE had to intervene to enforce Trump's directive.
Earlier this month, Musk said that DOGE found the Federal Emergency Management Agency misusing millions to house migrants in NYC. He said the funds, meant for American disaster relief, were wrongly spent on luxury hotels.
However, according to the Associated Press, his post misrepresents the funding, FEMA's role, and how the money is used.
Why It Matters: Since Trump returned to office last month, DOGE has reshaped federal agencies. Thousands of jobs have been cut, and several programs dismantled.
Musk, tasked with eliminating wasteful spending, is leading the effort as part of the president’s sweeping government overhaul.
The Tesla CEO's latest comments come amid legal challenges questioning his unchecked influence in the administration. A lawsuit filed by multiple Democratic states seeks to restrict Musk's access to government systems.
Musk’s role as a senior advisor to President Trump has also impacted his EV company.
Tesla's stock has struggled since President Trump's inauguration, dropping 16.5% from $424.07 on Jan. 21. Matt Maley, chief strategist at Miller Tabak, has previously voiced concerns about Musk being distracted.
Last week, Wedbush Securities analyst Dan Ives also noted that Musk’s involvement with DOGE has raised concerns. However, despite these worries, Ives maintained a bullish outlook on Tesla.
Price Action: Tesla’s stock is down 6.64% year over year. On Tuesday, it closed at $354.11, slipping 0.49% for the day. After-hours trading showed a slight uptick of 0.085%, according to the data from Benzinga Pro.
Image via Shutterstock
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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