Tesla’s (TSLA) CEO, Elon Musk, a prominent adviser to President-elect Donald Trump, has called for the elimination of the Consumer Financial Protection Bureau (CFPB). This regulator has often been at odds with Silicon Valley investors.
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Musk posted this in a late-night post on his platform, X, where he wrote, “Delete CFPB. There are too many duplicative regulatory agencies.”
Musk’s comments followed venture capitalist Marc Andreessen’s appearance on Joe Rogan’s podcast. Andreessen, a celebrity venture capitalist and fellow Trump supporter, accused the CFPB of stifling competition and attempting to “terrorize financial institutions” during the podcast.
CPFB Has Pursued Legal Action Against Fintech Startups
Andreessen’s comments come as the CFPB has pursued legal action against several fintech firms and startups, including one backed by Andreessen. In 2021, the bureau shut down payday lender LendUp for cheating its customers. LendUp had been backed by Andreessen’s venture capital firm.
Additionally, Andreessen criticized the CFPB on the podcast for allegedly pressuring banks to sever ties with startups in controversial sectors, such as cryptocurrency.
Musk Assumes Role as Head of DOGE
Musk’s criticism of CPFB comes amid his new role as leader of Trump’s Department of Government Efficiency (DOGE), along with Vivek Ramaswamy. DOGE is a private advisory board tasked with streamlining federal operations. Musk has pledged to cut regulatory oversight and reduce the federal workforce.
Critics suggest these measures could benefit Musk’s ventures, including his social media platform X, which is pursuing state licenses to operate as a payments app. Interestingly, this business would be under the purview of CFPB.
What Is the 12-month Price Target for Tesla?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on 11 Buys, 14 Holds, and nine Sells. Over the past year, TSLA has increased by more than 30%, and the average TSLA price target of $233.67 implies a downside potential of 29.8% from current levels.
