Elon Musk's dual role as the CEO of Tesla and as head of the Department of Government Efficiency (DOGE) is leading to significant concern among investors and industry analysts, particularly as his focus on government efficiency appears to distract from his commitments to his automotive business. Christopher Tsai, president and chief investment officer of Tsai Capital, recently expressed his hopefulness for the future of Tesla as he criticized Musk's involvement with DOGE. “I hope his involvement with DOGE is short-lived so he can spend even more time on his businesses,” Tsai stated during an interview with The Guardian published on March 15, 2025.
Investors have been keeping a close eye on Tesla's stock which has plummeted more than 50% from recent highs, raising alarms about the ramifications of Musk's split attention. Tsai Capital, which as of February 12 held about 69,700 shares of Tesla, reflecting roughly one-fifth of its $137 million portfolio, has been directly impacted by Musk's distractions. Investors like Ross Gerber have voiced concerns, predicting the stock could drop as much as 50% this year due to Musk's preoccupations with various other projects, including his work with AI and DOGE. “His 100% focus is on AI, and that's really a detriment to Tesla more than it's a plus for xAI and all the other businesses because he doesn't work at Tesla anymore,” Gerber told Business Insider earlier this month.
Musk himself acknowledged the challenge of managing multiple roles. “I'm just here trying to make government more efficient, eliminate waste and fraud, and so far, we're making good progress, actually,” he remarked during his conversation with Fox Business host Larry Kudlow. His assertions, though positive, stand at odds with mounting external pressures—protesters have gathered at Tesla showrooms nationwide to decry his role with the government efficiency program.
The situation has become complicated with recent developments surrounding Musk's technology ventures. Starlink, the satellite internet service owned by Musk's SpaceX, is now operational across the White House campus, routed through the White House data center. White House officials reported this effort was “to increase internet availability,” as parts of the complex had long suffered from poor connectivity. White House press secretary Karoline Leavitt reinforced this viewpoint when she stated, “The effort was to improve Wi-Fi connectivity on the complex.”
Questions surrounding ethics arose when Chris Stanley, identified as employed at SpaceX and task-force member within DOGE, explored the installation of Starlink on the roof of the Eisenhower Executive Office Building. His actions inadvertently triggered Secret Service alarms, leading to scrutiny over the operational integrity of the project. Harrison Fields, another White House spokesman, confirmed the administration was aware of DOGE's objectives to bolster internet access, but pressing concerns remain about Musk’s substantial influence over technology used within government agencies.
Concerns voiced by many about Musk’s technology placement come amid reports of his efforts to streamline federal spending. Critics have suggested he wields excessive authority over systems existing within government infrastructure, potentially endangering data privacy and security. While the Secret Service has stated it does not view the installation of Starlink as jeopardizing safety, the gravity of the issue raises ethical questions about the intertwining of government work with Musk's private enterprise interests.
Alan Forbes, chairman of the Portsmouth Republicans, defended Musk's role amid the backlash, addressing public fears. “The DOGE team makes federal employees uncomfortable,” he noted, yet argued, “Scrutiny tends to do [that].” He elaborated on this dissatisfaction, pointing out the pressing need for tackling the U.S.'s staggering national debt of $36.56 trillion as of early March 2025. “The reality is we cannot sustain spending at this level—even on programs we like,” he stated, pressing for accountability within the government.
Forbes articulated the broader perspective of government inefficiency, contending, “Perhaps that's why no one protested [previous efficiency panels]. The fact that's [Musk's] involvement is causing such uproar suggests for the first time real change might be on the table.” The discourse is gaining traction within political circles, as even Democratic leaders acknowledge the need for budgetary reform when it is apparent funding isn't sustainable without significant cuts or tax increases.
The interplay between Musk's multiple roles continues to present both challenges and opportunities within government operations, persuading some officials of the inefficiencies prevalent within federal systems. While some citizens and organizations grow anxious over Musk's government service, the prioritization of fiscal responsibility has begun to emerge as imperative for many political factions. How this dynamic will shape Tesla’s future among Musk's ventures remains uncertain, but with widening protests and investor dissatisfaction, it’s clear significant scrutiny and pressure will persist moving forward.
