Elon Musk’s DOGE (Department of Government Efficiency) is facing a mass exodus of staffers who are unhappy with the head’s aggressive ways of streamlining federal agencies. Specifically, 21 key civil servants employed with the DOGE resigned yesterday, raising serious doubts over the committee’s survival.
The employees were part of the USDS (United States Digital Service), which was responsible for modernizing the government’s technology, including social security, tax filing systems, and health care infrastructure, among others. Their resignation jeopardizes the functioning of these departments. Moreover, with one-third of DOGE quitting, Musk’s ambitions are expected to slow down. The committee is also facing a slew of lawsuits and backlash for the ongoing federal job purge.
Musk’s Actions Have Equal and Opposite Reactions
The federal employees wrote a joint resignation letter in anguish, stating that they were unwilling to offer their services for a cause directed at “dismantling of critical public services.” They seem unhappy with Musk’s ways of downsizing federal organizations, which, in fact, are leading to compromising core government functioning and endangering Americans’ private data. The letter was addressed to the White House chief of staff Susie Wiles, showing their unwillingness to “legitimize” DOGE’s actions.
The staff seems to disagree with Musk’s thoughts and processes on several counts. Musk is seeking to overhaul the federal government and cut spending by almost $2 trillion. He is undertaking steps such as reducing the workforce, eliminating DEI (diversity, equity, and inclusion) programs, and also shutting down agencies such as USAID (U.S. Agency for International Development) and the CFPB (Consumer Financial Protection Bureau). DOGE’s employees are also dissatisfied with the quality of fresh staff being hired, claiming that the newly hired individuals lacked sufficient technical expertise.
Earlier in the week, Musk sent an email asking federal workers to submit their weekly progress reports in five bullet points. Musk’s actions saw severe reaction and backlash from government agencies, with some of the department heads telling their employees to ignore the email. Remarkably, the White House said that it had received one million responses from the roughly 2.3 million employees working at federal agencies.
Is Tesla Stock Good to Buy?
Tesla (TSLA) CEO Musk’s political inclinations are surely having a negative impact on the electric vehicle (EV) maker’s performance. Analysts prefer to remain on the sidelines on Tesla stock until the company is able to navigate the issues. On TipRanks, TSLA stock has a Hold consensus rating based on 13 Buys, 12 Holds, and 10 Sell ratings. Also, the average Tesla price target of $357.68 implies 18.1% upside potential from current levels. In the past year, TSLA’s stock price has gained 51.9%.
