Elon Musk Balances Government Overhaul Efforts Amid Declining Tesla Shares and Investor Concerns

On Monday, Elon Musk spoke candidly about the complexities of simultaneously leading companies such as Tesla and SpaceX, alongside spearheading significant government restructuring efforts. During an interview aired by Fox Business, Musk expressed the difficulty inherent in balancing his dual roles, indicating the toll these commitments have been taking on him.

to enhance governmental efficiency by reducing waste and fraud, adding optimistically that the initiatives have been progressing well thus far.

Meanwhile, Tesla's stock fell sharply, declining by 15% on Monday, marking its largest single-day loss since 2020. Investor anxiety has grown as Tesla's shares have dropped approximately 55% since their December peak, reflecting widespread concerns regarding Musk spreading himself too thin.

Musk's current governmental project revolves around the DOGE office, known for aggressive government spending cuts and mass layoffs across various federal agencies. Although President Trump has publicly attributed leadership of the office to Musk, other White House officials have disputed this characterization.

In his Fox Business appearance, Musk revealed that his DOGE team had expanded to over 100 people and may soon reach 200. He noted that their efficiency-focused interventions have already impacted nearly every government department. Musk reiterated that ongoing efforts aim at broad governmental improvements and operational efficiency.

During the interview, Musk also addressed troubling events at Tesla facilities, including recent vandalism incidents and gunfire at an Oregon dealership. Though acknowledging these as challenging experiences, Musk reaffirmed his conviction that the ongoing initiatives are justified and necessary.

Despite Musk's historically strong commitment and extensive working hours dedicated to his companies, some investors are worried about his increasing attention toward the DOGE office project. According to Garrett Nelson, a senior equity analyst with CFRA Research, shareholders are rightfully concerned about Musk diversifying his attention too widely, especially now that it appears his governmental initiative has consumed the majority of his time.