Steve Bannon Rips DOGE's Accounting—'None of This Makes Sense'
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
Steve Bannon questioned the accounting of the Department of Government Efficiency (DOGE) on Wednesday, while also taking aim at the agency's billionaire leader Elon Musk.
Newsweek reached out to the White House for comment via email on Thursday.
Why It Matters
Bannon has been a staunch Trump ally and leader of the MAGA movement, but has had tension with Elon Musk, the world's wealthiest man and the CEO of Tesla and SpaceX. He has been critical of Musk on a number of issues including his ties to China and some immigration matters around H1-B visas.
What to Know
Bannon has supported the goals of DOGE but called for more transparency of its accounting during a discussion during Semafor's World Economy Summit. He said its accounting doesn't "make sense" given the lack of cuts at the Pentagon.
He said there needs to be a "very specific accounting as what he found as far as fraud goes and waste," signed off by every department head.
Steve Bannon speaks at the Conservative Political Action Conference (CPAC) in National Harbor, Maryland on March 3, 2023.
Steve Bannon speaks at the Conservative Political Action Conference (CPAC) in National Harbor, Maryland on March 3, 2023."We need to know exactly what he found because we went from $2 trillion a year to $1 trillion to year to $150 billion next year with nothing this year. None of this makes sense," Bannon said. "The cuts you've seen that have been announced are programmatic, whether it's USAID or DOE, that's a totally different thing."
He also said there must be a "letter of certification" that no data of the government or any citizens are held by "anybody" except for the Trump administration or U.S. government in May, before Musk takes a step back from DOGE. The billionaire said during Tesla's earning call this week that he plans to refocus his efforts on his businesses, rather than DOGE, in the near future.
When asked by Semafor's editor-in-chief Ben Smith if he "trusts" Musk to not take data, Bannon responded, "trust but verify."
Bannon still praised DOGE as a "blunt force instrument" that implemented layoffs needed by the administrative state.
"You've got to go to the Pentagon. You can't be serious if you're talking about waste, fraud and abuse in our system, unless you're in the Pentagon, finding out how it really operates," he said.
What People Are Saying
Bannon previously said on his War Room podcast: "Elon said a lot of stuff that none of it's turned out to be accurate. Like where's my $2 trillion cuts? Where's my $1 trillion cuts? Where's my $150 billion cut?"
Musk, during Tesla's earnings call on Tuesday, said: "There's been some blowback for the time that I've been spending in government with the Department of Government Efficiency or DOGE. I think the work that we're doing there is actually very important for trying to sprain in the insane deficit that is leading our country, the United States, to destruction. And the DOGE team has made a lot of progress in addressing waste and fraud."
What Happens Next
The White House hasn't weighed in on whether they will require a release of DOGE accounting, as Bannon called for, before Musk takes a step back from the task force. Musk also did not provide a specific date he plans to step back and added he would still spend a day or two working for the government.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Dear Tesla Stock Fans, Mark Your Calendars for September 30
Few events on the calendar carry as much weight for U.S. electric vehicle buyers — and Tesla (TSLA) investors — as Sept. 30, 2025. That date marks the end of the $7,500 federal EV tax credit under U.S. President Donald Trump's 'One Big Beautiful Bill Act,' signed into law in July. The move effectively shortens what was, under the President Joe Biden-era Inflation Reduction Act, a generous incentive slated to run through 2032. Now, with the clock ticking, the U.S. EV market is bracing for a major shift. In this article, we'll explore what the Sept. 30 deadline means for Tesla, how it could reshape U.S. EV demand, and why investors should mark their calendars for what may be one of the most pivotal dates for TSLA stock in 2025. More News from Barchart Warren Buffett Warns Investing At 'Too-High Purchase Price' Even for 'an Excellent Company' Can Undo a Decade of Smart Investing Why Archer Aviation's (ACHR) Post-Earnings Tailspin Looks Like a Favorably Mispriced Opportunity BitMine Immersion Now Holds 1.15 Million Ethereum Tokens. Should You Buy BMNR Stock Here? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. About Tesla Stock Tesla is a prominent innovator dedicated to accelerating the global transition to sustainable energy. The Elon Musk-led powerhouse designs, develops, manufactures, leases, and sells high-performance fully electric vehicles, solar energy generation systems, and energy storage products. It also offers maintenance, installation, operation, charging, insurance, financial, and various other services related to its products. In addition, the company is increasingly focusing on products and services centered around AI, robotics, and automation. TSLA's market cap currently stands at $1.1 trillion. Switch Auto Insurance and Save Today! The Insurance Savings You Expect Affordable Auto Insurance, Customized for You Great Rates and Award-Winning Service Shares of the EV maker have dropped 15.8% on a year-to-date basis. Tesla shares have been on a steady upward trend since Aug. 5. Several factors have supported the stock's gains. First of all, there's risk-on sentiment across markets, driven by Federal Reserve rate-cut expectations, easing global trade tensions, and a strong Q2 earnings season in the U.S. U.S. EV demand also appears strong in the third quarter, though this is likely driven by the impending loss of the $7,500 federal tax credit in September. Tesla Rides Sales Surge Ahead of Tax Credit Expiration The third-quarter EV buying frenzy is underway. The main reason is that consumers are rushing to purchase EVs ahead of a looming deadline to claim tax credits of up to $7,500. As a reminder, U.S. President Donald Trump's 'One Big Beautiful Bill Act,' signed in July, eliminates the tax credits for new, used, and leased EVs after Sept. 30. The tax credits, worth up to $7,500 for new EVs and $4,000 for used ones, are designed to make EV purchases more financially appealing to consumers. The EV tax incentives were among several policies implemented by the Biden administration to help reduce U.S. greenhouse gas emissions, with the transportation sector being the nation's largest emitter. Notably, under the Biden-era Inflation Reduction Act, the tax credits were initially set to be available to consumers through 2032. 'We're expecting Q3 may be [a] record for EV sales because of the tax incentives going away,' said Stephanie Valdez Streaty, a senior analyst at Cox Automotive. The firm's data revealed that consumers bought nearly 130,100 new EVs in July, marking the second-highest monthly sales on record, trailing only roughly 136,000 sold in December. Streaty said that July's figures represent a 26.4% jump from June and an increase of nearly 20% compared to the same month last year. In addition, EVs made up roughly 9.1% of total passenger vehicle sales in July, the highest monthly share on record. All of this indicates that the impending expiration of the federal tax credit is fueling a surge in demand this quarter. Analysts noted that dealers are leveraging the upcoming deadline to create a sense of urgency among consumers and drive sales. Tesla's homepage now displays the message '$7,500 Federal Tax Credit Ending' in bold lettering. Beneath it, the automaker added, 'Limited Inventory — Take Delivery Now.' Meanwhile, Tesla CFO Vaibhav Taneja stated during the Q2 earnings call that the company is prioritizing building and delivering as many vehicles as possible in the U.S. before the tax credits expire. The company has recently extended the estimated wait time for its best-selling Model Y to four to six weeks, up from the previous one-to-three-week range. It's an indication of increased order activity. On the back of higher U.S. demand, Wall Street projects Tesla will deliver 430,000 vehicles globally in the third quarter. That represents an increase from the 384,000 vehicles delivered in the second quarter but remains below the 463,000 sold in Q3 2024. How Could EV Tax Credit Elimination Impact Tesla? The federal electric vehicle tax credit program has played a major role in boosting Tesla's U.S. sales. With the expiration of these credits approaching, Tesla could soon be selling vehicles at effectively higher prices for consumers. And this applies not only to Tesla, but also to other automakers selling EVs, with analysts warning it could trigger a sharp drop in U.S. EV sales in the fourth quarter and beyond. Notably, there are already precedents for how similar policy changes have impacted EV adoption, as seen in Germany, where EV sales dropped sharply following the end of subsidies in late 2023. So, the first obvious implication is a decline in consumer demand. Of course, automakers could lower prices to help offset the loss of tax subsidies. For instance, Ford (F) cut prices on its Mustang Mach-E after it lost a $3,750 tax credit in January 2024, while General Motors (GM) provided a $7,500 incentive on models that lost the credits at that time. In Tesla's case, this would impact its unit gross profits, as average vehicle selling prices would have to drop substantially to offset the loss of the EV tax credit. And this comes at a time when its average selling prices have already been under pressure in recent quarters due to intense competition. With that, regardless of Tesla's response, the elimination of EV tax credits represents a significant headwind for the company. Tesla CEO Elon Musk, during the Q2 earnings call, warned of tough times ahead for the company as incentives such as the EV tax credit phase out in the U.S. 'We probably could have a few rough quarters,' Musk said. Meanwhile, the company is expected to launch its more affordable vehicle, which Musk described as resembling a Model Y, to the public in the fourth quarter. On the one hand, the vehicle is likely to provide some support to delivery volumes. On the other hand, the affordable model could cannibalize Model Y sales since it is essentially a stripped-down version of the latter. With that, monitoring delivery figures will be key to assessing the potential impact of cannibalization. Anyway, I expect a decline in deliveries, both sequentially and year-over-year, in Q4. Over the past few months, analysts have gradually reduced their estimates for Tesla's fourth-quarter top and bottom lines. They currently expect Tesla's adjusted EPS for Q4 to fall 45.5% year-over-year to $0.36, while revenue is projected to remain largely unchanged at $25.81 billion. What Do Analysts Expect for TSLA Stock? Wall Street analysts remain split on Tesla, with the stock carrying a consensus 'Hold' rating. Among the 41 analysts covering the stock, 12 rate it as a 'Strong Buy,' two as a 'Moderate Buy,' 17 recommend holding, and 10 assign a 'Strong Sell' rating. TSLA stock is currently trading above its average price target of $299.28. On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
CNBC
3 hours ago
- CNBC
Trump orders easing of commercial spaceflight regulations, in boon to Musk's SpaceX
U.S. President Donald Trump signed an executive order on Wednesday to streamline federal regulation governing commercial rocket launches, a move that would benefit Elon Musk's SpaceX and other private space ventures. Trump's order, among other things, directs the U.S. transportation secretary to eliminate or expedite environmental reviews for launch licenses administered by the Federal Aviation Administration, the White House said in a statement. The declaration also calls on the secretary to do away with "outdated, redundant or overly restrictive rules for launch and reentry vehicles." "Inefficient permitting processes discourage investment and innovation, limiting the ability of U.S. companies to lead in global space markets," the executive order states. It added: "Overly complex environmental and other licensing and permitting regulations slow down commercial space launches and infrastructure development, and benefit entrenched incumbents (who can afford to bear the expense of regulatory compliance) over new market entrants (who cannot)." Although Musk and Trump have remained embroiled in a high-profile feud for months, the billionaire entrepreneur's SpaceX rocket and satellite venture potentially stands to be the single biggest immediate beneficiary of Trump's order on Wednesday. SpaceX, although not mentioned by name in the executive order, easily leads all other U.S. space industry entities, including NASA, in the sheer number of launches it routinely conducts. Musk has complained that environmental impact reviews and post-flight mishap investigations have repeatedly slowed down testing of SpaceX's ambitious new Starship rocket vehicle, under development at the company's South Texas launch facility.
Business Insider
3 hours ago
- Business Insider
US approves potential $346 million sale of munitions, bombs and rockets to Nigeria
The Pentagon said that the U.S. State Department has approved possible sales of munitions, precision-guided bombs, and rockets to Nigeria, valued at an estimated $346 million. The U.S. State Department approved proposed sales of munitions and precision-guided bombs to Nigeria worth $346 million. The deal includes FMU-139 fuzes, bomb components, rockets, and various support services. Contracts for this sale will be managed by major defence companies like Lockheed Martin, RTX Missiles and Defence, and BAE Systems. The Pentagon said on Wednesday that the U.S. State Department has approved possible sales of munitions, precision-guided bombs, and rockets to Nigeria, valued at an estimated $346 million. The Defence Security Cooperation Agency (DSCA) said Nigeria has requested to purchase: 1,002 MK-82 general-purpose 500 lb bombs 1,002 MXU-650 Air Foil Groups (AFGs) for 500 lb Paveway II GBU-12 515 MXU-1006 AFGs for 250 lb Paveway II GBU-58 1,517 MAU-169 or MAU-209 computer control groups for Paveway II GBU-12/GBU-58 1,002 FMU-152 joint programmable fuzes 5,000 Advanced Precision Kill Weapon System II (APKWS II) all-up rounds, each consisting of a WGU-59/B guidance section, high-explosive warhead, and MK66-4 rocket motor. The package also includes non-major defence equipment (non-MDE) such as FMU-139 joint programmable fuzes, bomb components, impulse cartridges, high-explosive and practice rockets, integration support, and test equipment, along with U.S. government and contractor-provided technical, engineering, and logistics services. Key contractors in the deal According to the statement, the contracts will be executed by Lockheed Martin, RTX Missiles and Defence, and BAE Systems. Lockheed Martin is renowned for its advanced autonomous systems, aircraft, missiles, space launchers, and integrated defence solutions. RTX, the world's second-largest military company by revenue, produces aircraft engines, guided missiles, air defence systems, radars, and cybersecurity technologies. BAE Systems plc, headquartered in London, is the largest defence contractor in Europe and ranks among the leading global defence companies.
