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Daily Maverick
6 days ago
- Business
- Daily Maverick
Without Musk, DOGE likely to fizzle out, says ex-staffer
Tesla TSLA.O CEO Musk announced on Wednesday evening that he was ending his time as a special government employee but vowed that DOGE would continue without him. DOGE has overseen job cuts at nearly every federal agency as part of U.S. President Donald Trump 's attempts to shake up the federal bureaucracy. However, software engineer Sahil Lavingia, who spent almost two months working for the group of pro-Musk technologists, said he expects DOGE to quickly 'fizzle out.' 'It'll just die a whimper,' Lavingia, who was fired from DOGE earlier this month, told Reuters. 'So much of the appeal and allure was Elon.' He said he expected DOGE staffers to 'just stop showing up to work. It's like kids joining a startup that will go out of business in four months.' That would cap a remarkable undoing for DOGE, which Musk initially vowed would cut $2 trillion in federal spending. Instead, DOGE estimates its efforts have saved around $175 billion so far and the group's tallies have been riddled with errors. Lavingia, the 32-year-old founder and CEO of creator platform Gumroad, said he was recruited by DOGE through a personal contact and joined the team in March. While he said he was proud of certain achievements at the Department of Veterans Affairs, including modernizing the agency's internal artificial-intelligence chatbot, he said he was often at a loss about what work he was expected to do. 'I got dropped into the VA with an HP laptop. What are we supposed to do? What is the road map?' Lavingia said he asked, to no avail. 'I felt like I was being pranked.' The White House, the VA and Musk did not respond to requests for comment. The White House has previously said that DOGE works at a fast pace to root out waste, fraud, and abuse, and generate savings for American taxpayers. Lavingia said Steve Davis, the president of Musk's tunneling enterprise the Boring Company, ran day-to-day operations while Turkish-born venture capitalist Baris Akis helped with DOGE recruitment and DOGE logistics. Davis and Akis did not respond to requests for comment sent via the White House. When instructions did come through, they were usually communicated through phone calls or small chats on the encrypted Signal messaging app that would typically auto-delete in one day, Lavingia said. Lavingia said instructions included moving faster to increase mass layoffs at the VA, the federal government's second-largest agency. The only time he met Musk, Lavingia said, was at an all-hands meeting in March with what he estimated was between 40 and 60 fellow DOGE staffers. Lavingia said he asked to open-source, or make freely available, some of his computer code, which Musk approved. He then asked if they could livestream DOGE meetings to increase transparency. 'Elon said: 'That's a great idea. We'll do it next week.' He then caught himself and said: 'Maybe we pre-record it because of security risks.'' Lavingia said he never heard back. In early May, after he spoke to media outlet Fast Company about working at DOGE, Lavingia said his computer access was revoked in what amounted to a firing. He said Musk and team leaders never explicitly told him he should not talk to journalists. 'My DOGE days were over,' Lavingia wrote in a blog about his experience.
USA Today
23-05-2025
- Automotive
- USA Today
Tesla loses top spot in Europe as BYD leads April EV market
Tesla loses top spot in Europe as BYD leads April EV market Show Caption Hide Caption China's BYD surpassed Tesla in annual revenue for 2024 Chinese automaker BYD surpassed Tesla in total revenue for 2024, reporting $107 billion compared to the Elon Musk-led brand's $97.7 billion. Straight Arrow News Chinese automaker BYD sold more electric vehicles in Europe than Tesla TSLA.O for the first time, according to a report by JATO Dynamics, as an aging model lineup and CEO Elon Musk's politics hurt demand for the U.S. EV maker's cars. BYD, which also makes plug-in hybrid vehicles, registered 7,231 battery-powered electric vehicles (BEV) in Europe in April, while Tesla registered 7,165 units, the market research firm said. In case you missed it: Elon Musk says he's still committed to being Tesla CEO, do less political spending "This is a watershed moment for Europe's car market, particularly when you consider that Tesla has led the European BEV market for years, while BYD only officially began operations beyond Norway and the Netherlands in late 2022," JATO Dynamics' global analyst Felipe Munoz said. Demand for electric vehicles in Europe remains steady. BEV registrations surged 28% in April from last year, largely driven by Chinese car brands. Despite the EU's imposition of tariffs on Chinese-made electric vehicles, registrations of such cars increased 59% in the month from a year earlier, while carmakers from Europe, Japan, South Korea and the United States recorded 26% growth. Weak Tesla demand The company reported its first drop in annual deliveries last year, and analysts expect another fall this year after a 13% decline in the first quarter. Musk said earlier this week that Tesla had already turned around sales, and demand was strong in regions apart from Europe. His political views have triggered waves of protests against Tesla in the U.S. and Europe, leading to a slump in sales. Additionally, production halts to retool factories to make the redesigned Model Y crossover globally caused a drop in manufacturing and sales in the first quarter. Analysts have also attributed lower sales to customers waiting for less-expensive versions of the new Model Y, Tesla's best-selling vehicle, to become more widely available. Reporting by Akash Sriram in Bengaluru; Editing by Shinjini Ganguli
USA Today
16-03-2025
- Automotive
- USA Today
Tesla\u00a0warns it could face retaliatory tariffs
Tesla warns it could face retaliatory tariffs Show Caption Hide Caption Trump buys a Tesla purchase amid Tesla stock drops President Donald Trump bought a Tesla in show of support of Elon Musk and said it'll be used at the White House. U.S. automaker Tesla TSLA.O has warned that it and other major American exporters are exposed to retaliatory tariffs that could be leveled in response to President Donald Trump's aggressive use of tariffs. The Tesla comments reflect those of many U.S. businesses concerned by Trump's tariffs, but is notable because it is from Tesla. Tesla CEO Elon Musk, a close ally of Trump, has been leading the White House effort to shrink the size of the federal government. The billionaire heads up the so-called Department of Government Efficiency. The comments were made in a letter to the U.S. Trade Representative's Office and available on the office's web site. Dated Tuesday, it is among hundreds sent by companies to the office about U.S. trade policy. It is not clear who at Tesla wrote the letter, which is unsigned but is on a company letterhead. Tesla did not immediately respond to a request for a comment. Tesla says it is important to ensure that the Trump administration's efforts to address trade issues "do not inadvertently harm U.S. companies." Elon Musk news: Musk says juggling DOGE and CEO jobs is difficult, as Tesla shares slump It says it is eager to avoid retaliation of the type it faced in prior trade disputes, which resulted in increased tariffs on electric vehicles imported into countries subject to U.S. tariffs. "U.S. exporters are inherently exposed to disproportionate impacts when other countries respond to U.S. trade actions," Tesla said in the letter. "For example, past trade actions by the United States have resulted in immediate reactions by the targeted countries, including increased tariffs on EVs imported into those countries." Trump is considering imposing significant tariffs on vehicles and parts made around the world in early April. Tesla warns that even with aggressive localization of the supply chain, "certain parts and components are difficult or impossible to source within the United States." The automaker adds that companies will "benefit from a phased approach that enables them to prepare accordingly and ensure appropriate supply chain and compliance measures are taken." "As a U.S. manufacturer and exporter, Tesla encourages USTR to consider the downstream impacts of certain proposed actions taken to address unfair trade practices," the EV maker says. Autos Drive America, a trade group representing major foreign automakers including Toyota 7203.T, Volkswagen BMW Honda 7267.T and Hyundai warned USTR in separate comments that imposing "broad-based tariffs will disrupt production at U.S. assembly plants." The group added, "automakers cannot shift their supply chains overnight, and cost increases will inevitably lead to some combination of higher consumer prices, fewer models offered to consumers and shut-down U.S. production lines, leading to potential job losses across the supply chain." Reporting by Ananya Mariam Rajesh in Bengaluru and David Shepardson in Washington; Editing by Peter Henderson, Matthew Lewis and Neil Fullick
USA Today
05-02-2025
- Automotive
- USA Today
Tesla sales slump in five European markets in January
Tesla sales slump in five European markets in January Show Caption Hide Caption Trump wants to end EV tax credits as Musk's Tesla benefits from them The same Biden-era EV policies that Trump wants to roll back are currently benefiting Tesla CEO and special government employee Elon Musk. Straight Arrow News Tesla TSLA.O posted lower sales across five European countries in January, including the United Kingdom and France, as competitors with newer models gained on the electric vehicle maker and polls show public opinion souring on CEO Elon Musk. Musk has made a high-profile foray into politics, with much of his 2024 dominated by his financial support of Donald Trump, on whom the billionaire CEO spent $250 million in what proved a successful campaign to return to the White House. He has also stirred controversy with his vocal support for far-right parties in Britain and Germany on his social media platform X. Tesla's UK sales fell nearly 12% in January, even as monthly EV registrations in Europe's biggest battery-electric market surged to a record, according to data published by New AutoMotive on Tuesday. That follows a 63% decline in January sales for Tesla in France, drops of 44% and 38% in Sweden and Norway, and a 42% fall in the Netherlands. In California, the largest U.S. car market with more than 1.7 million vehicle registrations in 2024, Tesla sales fell by 12%. In 2024, Tesla posted its first-ever annual decline in deliveries, though it is still the leading EV seller in the United States. Musk said he would soon launch long-awaited cheaper EVs in 2025, and the company has increased its focus on autonomous driving technologies. More Elon Musk: Musk creates new power base in Washington with takeover of US agencies Tesla did not immediately respond to a request for comment on its sales. The company fell from the No. 2 spot for EV sales in Britain in January 2024 to the No. 7 spot behind Volkswagen VOWG_p.DE, Mercedes and Stellantis' Peugeot, which all posted higher sales. Several polls show consumers have mixed views of Musk. A late January survey conducted by EV review website showed that 59% of British owners of EVs, and those intending to buy such a vehicle, said Musk's influence would deter them from buying a Tesla. "Musk's influence on the brand is becoming increasingly polarising, pushing many buyers to look elsewhere," said CEO Ginny Buckley. "With over 130 mainstream EV models now available in the UK - compared to just 25 in 2020 - competition has never been fiercer and Tesla is already feeling the pressure." European politicians have pushed back lately against Musk's recent comments, which include the amplification of far-right commentators on X. Some accounts have quit the platform, citing the spread of misinformation. Musk has dismissed criticism against him as an affront to democracy and free speech. The Tesla CEO has become a vocal supporter of the far-right Alternative for Germany (AfD) ahead of February elections. He recently told an AfD audience just before the 80th anniversary of the liberation of the Auschwitz concentration camp that Germans should not feel guilt for the sins of their great-grandparents. The share of Swedes with a positive view of Tesla fell to 11% in a Novus survey conducted after Trump's inauguration, down from 19% in a similar poll conducted Jan. 15-17, according to Swedish news agency TT. Those with a negative view jumped to 63% from 47%, TT reported. The chief executive of research group New AutoMotive, Ben Nelmes, told Reuters that Tesla's problems stem less from Musk's actions and more from its failure to launch a new mainstream model since the Model Y in 2020, while rivals, including Chinese EV makers, have fresher products on the market. "It's not due to Musk's views or British motorists' views about Musk - they stopped innovating after the Model Y," he said of Tesla. Despite these factors, the company's stock has continued to outperform the market, with shares more than doubling over the past year. The stock currently trades with a forward price-to-earnings ratio exceeding 131, ahead of not just legacy carmakers but also high-flying tech stocks with P/E ratios in the 20s, according to LSEG data. Reporting by Alessandro Parodi in Gdansk and Nick Carey in London; Editing by David Gaffen and Matthew Lewis
USA Today
05-02-2025
- Business
- USA Today
Musk creates new power base in Washington with takeover of US agencies
Musk creates new power base in Washington with takeover of US agencies Show Caption Hide Caption Yassamin Ansari accuses Elon Musk, Donald Trump of 'hostile takeover' Rep. Yassamin Ansari of Arizona criticized President Donald Trump and billionaire Elon Musk during a protest outside the U.S. Treasury building in Washington on Tuesday, Feb. 4, 2025. Elon Musk's rapid takeover of two U.S. government agencies has enabled the South African-born billionaire to exert unprecedented control over America's 2.2-million-member federal workforce and begin a dramatic reshaping of government. The world's richest man and an ally of President Donald Trump, Musk, 53, has in two weeks created a new center of power in Washington as he executes Trump's cost-cutting initiative to reduce the size of the U.S. government. The CEO of Tesla TSLA.O and founder of SpaceX, Musk has acted swiftly since Trump's Jan. 20 inauguration, deploying teams of current and former employees of his companies as his agents. Musk's actions have fostered a wave of panic among government workers and public protests in Washington and at times have threatened to overshadow Trump's own agenda. Trump's up-and-down trade war with neighboring Canada and Mexico vied this week for space on front pages with Musk's effort to shut down USAID, the Agency for International Development, America's main humanitarian aid agency to the world. Musk's efforts are part of a massive government restructuring by Trump, who has fired and sidelined hundreds of civil servants in his first steps toward downsizing the bureaucracy and installing more loyalists. Americans are witnessing "an extraordinary centralization of power in someone who lacks a top-level security clearance and has not been subject to any Senate confirmation process," said Don Moynihan, a professor at the Ford School of Public Policy at the University of Michigan. "Musk has unprecedented and centralized control of the basic plumbing of government," he added. Nonetheless, Musk operates at Trump's pleasure. The president told reporters on Monday that the billionaire had to seek approval from the White House for any of his actions. "Elon can't do and won't do anything without our approval, and we'll give him the approval, where appropriate; where not appropriate, we won't. But he reports in." Asked who they are more worried about when it comes to the prospect of being fired, an employee of the General Services Administration that manages federal property and services said: "Musk. No one is really talking about Trump." DOGE cuts: Elon Musk says he 'deleted' IRS Direct File. Can taxpayers still use the free service? Trump has put Musk in charge of what both men call the Department of Government Efficiency. Despite its name, it is not a department, Musk does not draw a government salary, and DOGE's creation immediately drew lawsuits from government unions, watchdogs and public interest groups. Exactly who makes up DOGE is unclear. The Trump administration has not released a list of DOGE employees. Nor has it said how they are being paid, how many have entered each agency, and whether they are government workers. That raises questions about who they are answerable to - Musk or Trump as head of the executive branch. Musk and his DOGE lieutenants have taken over the Office of Personnel Management and the General Services Administration along with their computer systems. OPM is the human resources arm of the U.S. government, overseeing 2.2 million government workers. From there, emails have been sent out in the past week offering federal employees financial incentives to quit. The GSA oversees most government contracts and manages federal property. At least four current and former Musk aides are part of a team that has taken over OPM, shutting out some senior managers from their own computer systems, sources told Reuters. Musk visited the GSA last Thursday, an official said, while members of his team moved into the agency. On Friday, a Musk team gained access to the U.S. Treasury Department's payment system, which sends out more than $6 trillion a year on behalf of federal agencies and contains the personal information of millions of Americans who receive Social Security payments, tax refunds and other monies from government. Michael Linden, a senior official during the administration of former President Joe Biden at the Office of Management and Budget, a powerful agency that oversees the federal budget, said the access by Musk's aides to payment systems gives them extraordinary potential power. "They could get to pick and choose which payments the federal government makes," Linden said in an interview. Neither Musk nor the White House immediately responded to a request for comment. Trump has repeatedly said that the federal bureaucracy is bloated and inefficient, and needs to be downsized. He also accuses many federal workers of being liberal ideologues out to thwart his agenda. Musk exceeding his authority "Those of us who have worked at Elon's companies can see his fingerprints all over what's happening inside the federal government right now," said Thomas Moline, a former SpaceX senior avionics engineer. "It's a very seat-of-the-pants affair with Elon's loyalists scrambling to execute his every whim and desire as fast as possible." Governance experts say Musk appears to have already gone beyond the mandate granted by the executive order Trump signed setting up DOGE on Jan. 20. That order mandated it to modernize federal technology and software "to maximize governmental efficiency and productivity." Other orders on hiring freezes and recruitment say DOGE should work with other agencies to make recommendations. Musk and his aides appear to be doing much more than simply making recommendations. Employees from DOGE have clashed with security officials over access to sensitive information at the Washington headquarters of USAID and have been heavily involved in the downsizing of the agency. Read more Musk: Morgan Stanley to increase sale of loans tied to Musk's X, Bloomberg News reports Fear is gripping many civil servants, and they have taken to Reddit, Signal and Facebook to report on what is going on inside their agencies and discuss how to respond. They also warn that DOGE personnel are watermarking and otherwise embedding identifiers like additional spacing in emails to track down suspected leakers. Musk's critics, including Democratic lawmakers, have accused him of a hostile takeover of government. Federal worker unions sued to block Musk's access to sensitive computer systems. "We don't have a fourth branch of government called Elon Musk," U.S. Representative Jamie Raskin, a Democrat from Maryland, told reporters during a protest outside USAID headquarters. 'Fork in the road' Echoing language Musk used when he slashed Twitter's workforce after buying the social media company in 2022, an email was sent to all government employees titled "Fork in the Road" offering them deferred resignation, a scheme to pay workers through September if they offered to resign by Feb. 6. A second email encouraged government workers to seek more productive jobs in the private sector. Federal employee unions have urged workers not to take the offer, warning it may not be legal, as it is unclear how the payoffs would be funded. Unions representing the employees filed a lawsuit on Tuesday to block the administration's plan to offer buyouts, even as a U.S. official told Reuters that more than 20,000 employees were planning on quitting. Nick Bednar, an associate professor of law at the University of Minnesota Law School, said it was deeply concerning that Musk and his aides have such enormous power over federal personnel and federal payments "when they seemingly have very little accountability." It was also extraordinary that Musk, whose companies have multiple contracts with the U.S. government, had been put in a position that would raise so many questions about conflicts of interest, he said. Reporting by Tim Reid; Additional reporting by Jonathan Landay and Susan Heavey; Editing by Ross Colvin and Howard Goller
