New Street Research analyst Pierre Ferragu has expressed support for Tesla Inc. CEO Elon Musk‘s upcoming role in the newly announced Department of Government Efficiency while acknowledging the challenges ahead in reforming federal operations.
What Happened: “Will be fascinating to see DOGE at work: Elon’s method in a government environment,” Ferragu wrote on X on Thursday, noting the potential resistance from “lawmakers & civil servants defending their personal interest.”
The Tesla CEO’s approach to government reform has drawn attention from notable figures including Walter Isaacson, an American journalist known for his acclaimed biographies of influential figures including Henry Kissinger, Benjamin Franklin, Albert Einstein, Steve Jobs, Jennifer Doudna, and most recently, Musk himself.
Isaacson recently appeared on CNBC’s ‘Squawk Box’ to discuss Musk’s new challenge in leading the DOGE and his relationship with Trump.
Isaacson stated that Musk’s handling of DOGE will be distinct from his previous approach with Twitter, now X, where he reduced the workforce by 80% to increase efficiency. Unlike his private ventures, DOGE will be a federal agency, meaning Musk won't be directly paying employees.
Isaacson also pointed out that Musk holds significant influence in the defense sector and noted that Trump’s support will play a key role in shaping Congress’s response.
The comments follow President-elect Donald Trump‘s November announcement appointing Musk and former presidential candidate Vivek Ramaswamy to lead DOGE, a new initiative aimed at restructuring federal agencies and reducing the government’s $6.5 trillion annual spending. The department is scheduled to complete its work by Jul. 4, 2026.
Why It Matters: Musk, who has been vocal about reducing government expenditures, called the initiative one that would “send shockwaves through the system.”
His appointment comes as he continues to challenge traditional government spending approaches, recently criticizing military programs like Lockheed Martin Corp.‘s F-35 program, estimated to cost $1.8 trillion.
Financial experts have weighed in on the potential impact. InCred Global Wealth U.K. analyst Mario Georgiou suggests the initiative could yield annual savings between $50-100 billion, though this represents a small portion of the projected $6.7 trillion federal budget.
The department’s mandate includes restructuring federal agencies, reducing regulations, and implementing accountability measures. While expressing optimism about DOGE’s potential success, Ferragu noted it would be “a fascinating tough fight,” highlighting the complexity of bringing private sector efficiency to government operations.
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