Investor Predicts Musk's DOGE Will Fade to Black in 30 Days

Elon Musk, the CEO of Tesla and SpaceX, has received the freedom to make significant cuts to federal agencies under the direction of former President Donald Trump. However, an investor is now speculating that this situation could change very soon.

In a recent interview with CNN's Anderson Cooper, Scott Galloway, an investor and professor at NYU's Stern School of Business, shared his theory about Musk's future in the public eye. Galloway suggests that Musk's initiative, known as the Department of Government Efficiency (DOGE), may face challenges that lead to its downfall. He predicts that pressure from Trump's Cabinet members and external financial strains could contribute to this outcome.

Galloway stated, "I think DOGE is probably going to die a quiet death in the next 30 days. If they have elevated the decision-making power to Cabinet members, taking it away from Musk, the secretaries are more focused on their responsibilities and not keen on making significant job cuts. They face tough challenges in their roles."

According to Galloway, Musk is encountering substantial financial losses. He believes DOGE will likely diminish gradually rather than face a sudden end. The entrepreneur noted that Musk's major companies have recently lost a significant amount of market value, prompting the billionaire to consider stepping back from his position to safeguard his wealth.

He elaborated on the impact, stating, "It's not just affecting Tesla's stock— which has dropped by a third in the past month— but it will also affect SpaceX, which is crucial for Musk's financial future. SpaceX's valuation is falling, and once it decreases from being the highest valued private company, Musk may choose to recede from the spotlight to protect his interests."

Reports indicate that Tesla's stock has halved in value since last December, falling from $480 per share to about $220. SpaceX, while privately held, was valued at around $350 billion but has recently been estimated at only $147 billion. Musk holds a 42% stake in the company, making these shifts particularly alarming for him.

Musk, DOGE, Finance