Musk's bet on Trump a ‘poker move for the ages’, Wedbush says after DOGE job

Investing.com -- The Donald Trump administration revealed on Tuesday that Elon Musk and Vivek Ramaswamy will head the newly formed Department of Government Efficiency (DOGE), with a mandate to cut down excessive regulations, streamline bureaucracy, and reshape federal agencies.

Although DOGE is not an official US government department and thus bypasses the need for Congressional approval, it points to Musk’s “massive role in the Trump White House with his increasing reach clearly across many federal agencies,” Wedbush analysts said in a note.

This role won’t alter Musk's CEO responsibilities at Tesla (NASDAQ:TSLA ) and SpaceX, a key point for investors.

"We would also expect Musk to have a key role on many of the new AI initiatives within the government (AI Ambassador) as well as China tariff discussions over the coming months as Trump gets ready to take the Oval Office in January,” analysts led by Daniel Ives continued.

Wedbush sees Musk’s new government involvement as a positive for Tesla, predicting that Trump will prioritize autonomous driving and AI advancements over the next 12 to 18 months, potentially transforming the electric vehicle (EV) giant’s trajectory.

Although the formation of DOGE gives Musk another role to balance alongside Tesla, SpaceX, xAI, and X, Ives and his team believe the significant benefits for the billionaire and Tesla “far outweigh any negatives as this continues to be a 'poker move for the ages' by Musk betting on Trump."

Further specifics on Musk's government role are expected in the coming weeks and months.

In an X post Wednesday, the businessman said that all actions taken by the DOGE will be made available online to ensure maximum transparency.

He noted that the public will be encouraged to provide feedback on DOGE’s actions and said there will be "a leaderboard for most insanely dumb spending of your tax dollars.”

“This will be both extremely tragic and extremely entertaining,” he wrote.

Source: Investing.com