Elon Musk, the billionaire entrepreneur and CEO of Tesla, just made his most ambitious announcement yet. Effective May, he’ll put his attention elsewhere and spend more time at Tesla. During Tesla’s third quarter 2022 earnings call, Musk dropped the bombshell that he intends to reduce his time with DOGE. He figures that he’ll only need to spend “a day or two” a week on DOGE-related issues. This decision comes at a time that investor speculation is mounting around Tesla’s sales performance, which has allegedly slumped over the past few months.
Musk’s announcement is a sign of his continuing failure to be able to serve in multiple executive posts simultaneously. He runs Tesla, X/Twitter, SpaceX, Neuralink—and other projects. As he reallocates his focus towards Tesla, the rationale behind this shift stems from a notable slump in the company’s sales figures, which many attribute to the controversies surrounding Musk’s leadership at DOGE.
Shifting Priorities
Come May, this will leave Elon Musk focused mainly on Tesla, as the new CEO at Twitter settles into his seat. He said that he wants to spend very little time on DOGE. This is shocking, given his powerful role in shaping its development and direction. According to reports, he’s expected to oversee DOGE affairs for a few days each week. He will undoubtedly put even more emphasis on Tesla’s still-ongoing operations in the future.
This decision marks a pivotal moment for Musk as he seeks to address the challenges facing Tesla, especially amid heightened scrutiny regarding the company’s sales. The announcement comes at a particularly interesting time for Tesla and DOGE. While trying to balance his juggled 14 or so other ventures, Musk has to figure out how to stabilize Tesla’s market performance.
Controversies Surrounding DOGE
Since the beginning of the year, Elon Musk’s role in DOGE has been a subject of intense scrutiny. His contribution goes deeper — targeting multiple U.S. federal agencies and departments, such as the U.S. Treasury’s federal payment system. Now, more complaints have surfaced about the lack of efficacy and transparency behind DOGE projects.
At first, DOGE’s website claimed savings of $8 billion on one project. That number was subsequently adjusted down to just $8 million. These types of inconsistencies have led many to wonder about the legitimacy of DOGE’s assertions and Musk’s guidance over the company. His dual responsibilities at DOGE and Tesla continue to raise controversy. This has caused many to speculate if he could even successfully run one of these companies, let alone both.
Implications for Tesla
From a recent sales slump to pandemic travel restrictions, Musk has had to refocus on where he needs to spend his time between all of his ventures. The impact on Tesla’s other substantive challenges is worsened by the reputational damage wrought by Musk’s participation in DOGE. Finally, too many analysts assume that with a renewed focus on Tesla, these problems can be solved. This change, done the right way, would quickly re-establish investor confidence.
As Musk goes about changing his priorities, the long-term effect on Tesla’s business practices remains to be seen. The future of DOGE’s initiatives is similarly up in the air. Musk’s brief special government employee stint is ending soon. Either way, industry observers will be eagerly watching his next moves and especially the rollout of big-ticket projects.
