Media: Musk's involvement in DOGE caused "massive brand damage" to personal firms

Elon Musk’s increasingly controversial role as head of the US government’s Department of Government Efficiency (DOGE) has reportedly dealt a major blow to several of his companies.

The billionaire has announced on April 22 that he would step back from Doge starting next month following the purchase retreat of his companies' consumers that have been reacting with outrage to Doge’s actions, Caliber.Az reports referring to an article by Financial Times.

According to the publication, Musk’s political involvement and his remarks about Ukraine have prompted foreign governments and corporations to "seek alternatives to the billionaire’s enterprises,” which include electric vehicle manufacturer Tesla, his AI startup xAI, satellite provider Starlink, and space technology firm SpaceX.

For investors the big uncertainty is whether Musk can distance himself from politics and, more fundamentally, whether his full attention on Tesla will be enough to help the company regain its competitive edge.

“People view [Musk] as mercurial, and he’s providing you this critical service. It is causing a massive backlash where customers are looking for a secure supply,” said Chris Quilty, an analyst at Quilty Space told the publication. “This is the one industry in the world that is rooting for Amazon.”

Expectations that Elon Musk’s political clout would boost his businesses helped propel Tesla’s market value back above $1 trillion, adding around $100 billion to the wealth of the world’s richest man — who invested just over $250 million into Donald Trump’s campaign.

But by Musk’s own admission, his alignment with Trump has triggered serious “blowback” for Tesla, his flagship electric vehicle company.

“What started as a Cinderella story turned into Nightmare on Elm Street,” said Dan Ives, an analyst at Wedbush Securities who had once applauded Musk’s close ties to the White House.

Instead of fast-tracking Tesla’s ambitions in AI and autonomous vehicles through deregulation, Musk’s increasingly polarizing role as head of the so-called Department of Government Efficiency (DOGE) has caused “massive brand damage,” Ives said.

By Nazrin Sadigova