Investor Urges Elon Musk to Prioritize Tesla Over DOGE

Christopher Tsai, the president and chief investment officer of Tsai Capital, a prominent investment management firm, expressed his desire for Elon Musk to dedicate more time to his core businesses, particularly Tesla, rather than his involvement with the Department of Government Efficiency, known as DOGE.

The Concern of a Tesla Investor

In an interview with The Guardian, Tsai conveyed his hope that Musk's engagement with DOGE would be short-lived, allowing him to focus more on advancing his business ventures. Tsai, who also founded Tsai Capital, has a significant stake in Tesla, with the firm owning 69,700 Tesla shares as of February 12, representing around one-fifth of its $137 million portfolio.

Challenges Faced by Tesla

Despite Musk's efforts to streamline government expenditures through DOGE, his attention diversion has sparked issues for Tesla. Demonstrators have mobilized at Tesla showrooms across the country to voice their disapproval of Musk's involvement with DOGE.

Following an initial surge in Tesla's stock post Donald Trump's election victory in November, the company has experienced a decline of over 50% from its recent peak. Tesla has also witnessed a drop in sales in key markets like Europe and China.

Concerns from Other Tesla Backers

Ross Gerber, a longstanding Tesla investor, shared similar sentiments, expressing concerns that Musk's focus on areas like AI has led to a lack of attention towards Tesla. Gerber anticipated a potential 50% decrease in Tesla's stock value due to Musk's distractions.

Gerber emphasized the importance of Musk prioritizing Tesla's Full Self-Driving software over other ventures, believing it would instill more confidence among investors.

Despite recent setbacks, Musk remains optimistic about DOGE's progress, mentioning in an interview with Fox Business that balancing his commitments between DOGE and his other enterprises has been challenging yet productive.

It is evident that stakeholders like Tsai and Gerber are urging Musk to realign his focus on bolstering Tesla's performance amid ongoing distractions.

Source: Business Insider

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By: ktan@businessinsider.com (Kwan Wei Kevin Tan)
Title: Investor Urges Elon Musk to Prioritize Tesla Over DOGE
Sourced From: www.businessinsider.com/tesla-backer-wants-musk-spend-less-time-doge-2025-3
Published Date: Tue, 18 Mar 2025 05:37:14 +0000