Editor’s note: The headline of this story has been updated to correct the date.
Tesla Inc. TSLA experienced a pre-market surge on Wednesday after news broke that its CEO, Elon Musk, is set to join Donald Trump’s team. The announcement was made by President-elect Trump on Tuesday.
What Happened: At the time of writing on Wednesday, Tesla was trading 2.55% higher after falling 6.15% on Tuesday and closing at $328.49, according to Benzinga Pro on Wednesday.
Trump has appointed Musk and former presidential candidate Vivek Ramaswamy to lead the newly formed Department of Government Efficiency (DOGE). This department is tasked with overhauling federal agencies and reducing government expenditure.
Trump likened this initiative to “The Manhattan Project,” with goals to cut bureaucracy, reduce regulations, and eliminate wasteful spending. The department aims to complete its mission by July 4, 2026, coinciding with the 250th anniversary of American independence.
Trump expressed his confidence in Musk and Ramaswamy, stating, "Together, these two wonderful Americans will pave the way for my Administration to dismantle Government Bureaucracy." The department will work closely with the White House and the Office of Management & Budget to implement structural reforms.
Musk, who shared the news on X (formerly Twitter), commented that the changes would "send shockwaves through the system." Interestingly, the department’s acronym, DOGE, shares its name with the cryptocurrency Dogecoin, which Musk has previously supported.
Why It Matters: The appointment of Elon Musk to Trump’s cabinet comes at a time when the future of the electric vehicle (EV) industry is under scrutiny. Following Trump’s election as the 47th U.S. president, there is uncertainty regarding policy changes that could impact EV makers, including Tesla.
Analyst Dan Ives of Wedbush Securities views Trump’s victory as a significant positive for Tesla, suggesting it could lead to substantial gains for the company. However, after the announcement, Ives highlighted that since it is not an official cabinet or U.S. government position yet, ” there will be NO changes to Musk's CEO roles with Tesla and SpaceX importantly from the Street's perspective."
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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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