Tech billionaire Elon Musk announced on Thursday that the Department of Government Efficiency (DOGE) is on track to complete most of its planned $1 trillion in federal spending cuts within the next 64 days. In an interview with Fox News, Musk expressed confidence in DOGE’s ability to achieve the $1 trillion savings, reducing total federal spending from approximately $7 trillion to $6 trillion.
DOGE is a cost-cutting initiative launched during President Trump’s second term, focused on reducing federal spending and downsizing the workforce. Musk was appointed by the White House as a “special government employee” to lead the effort, limiting his tenure to a maximum of 130 days. As a result, his leadership could end by late May.
DOGE’s Rapid Cuts Raise Concerns
Since its launch, DOGE has been cutting federal spending by an average of $4 billion daily, aiming to reduce the annual deficit by half within 130 days. The initiative has focused on cutting agency budgets, reducing staff, and eliminating waste and fraud across federal departments. Meanwhile, Musk claims the program has already saved $115 billion through layoffs, asset sales, and canceled contracts.
Musk asserts that these cuts will not compromise core services and may even increase Social Security benefits. However, experts warn they may weaken U.S. economic data and public services. Some question the figures, cautioning that achieving the $1 trillion target might necessitate cuts to programs like Social Security, despite Trump’s pledge to safeguard them.
Musk’s DOGE Drama Sparks Tesla Sell-Off
Musk’s DOGE has faced significant backlash, drawing criticism from various sectors. The growing controversy surrounding Musk’s political involvement and DOGE’s spending cuts has also taken a toll on his EV company Tesla (TSLA). Notably, Tesla has seen its stock plummet over 30% this year.
Moreover, the EV giant is grappling with mounting competition from Chinese automakers, impacting consumer demand.
What Is the Forecast for Tesla in 2025?
On Wall Street, analysts have maintained a neutral stance on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 14 Buys, 11 Holds, and 11 Sells assigned in the last three months. The average price target for Tesla shares is $335.32, suggesting a potential upside of 22.7% from the current level.
