Tesla CEO Elon Musk And “DOGE” Wasted Billions

Tesla CEO Elon Musk swept into Washington, DC earlier this yr on a golden chariot along with his trusty chainsaw at his aspect and a extensively reported pledge to shave $1 trillion in “waste and fraud” off the federal price range as head of President Trump’s “DOGE” workplace. Or was that $2 trillion? Whelp, it doesn’t matter now. The mud has settled and Musk has skedaddled again to Tesla HQ with a pocket filled with achievements, although not those he promised.

DOGE In Motion: There Goes $21.7 Billion, Down The Drain

Although Musk failed to realize a notable document on rooting out “waste and fraud,” he did generate an estimated $21.7 billion in waste, in keeping with a brand new Minority workers report from the US Senate Everlasting Subcommittee on Investigations (PSI) titled, “The $21.7 Billion Blunder: Analyzing the Waste Generated by DOGE.”

The brand new report comes below the “Minority” umbrella as a result of Republican Senators maintain the bulk on the 11-seat subcommittee and within the Senate at giant, in addition to the Home of Representatives, too. Maybe we’ll hear from the Majority in a while, however don’t maintain your breath. Solely the Minority appear interested by holding Musk and DOGE to account for squandering billions in taxpayer funds.

The Rating Member of PSI, Senator Richard Blumenthal (D-CT), launched the findings on July 31, and he didn’t maintain again. “At the exact same time that the Trump Administration is slicing well being care, vitamin help, and emergency providers within the identify of ‘effectivity’ and ‘financial savings,’ they’ve enabled DOGE’s reckless waste of at the least $21.7 billion {dollars},” Senator Blumenthal stated (notice: “Rating Member” is the title of the chief of the minority get together on Congressional committees and the total Home and Senate).

Timing Is All the pieces

The brand new report drops at a very inconvenient time for President Trump, who continues to grapple unsuccessfully with the continuing Jeffrey Epstein scandal, and Republicans in Congress who’re additionally caught within the riptide of shock over the Jeffrey Epstein scandal, in addition to Elon Musk and his Tesla EV enterprise, which has turn out to be a rolling textbook case of model popularity in disaster all by itself.

Including much more gasoline to Tesla’s reputational bonfire, the report comes simply days after Republican members of Congress voted to claw again billions in federal spending that had beforehand been voted by way of. Sure, there are takesie-backsies in Congress. It’s referred to as a rescission. This explicit rescissions bundle was supposedly aimed toward memorializing the “financial savings” achieved by DOGE.

Besides not, as Blumenthal’s workplace identified in a press assertion:

Mockingly, the $21.7 billion in DOGE-generated waste might have totally coated President Trump’s misguided rescissions bundle twice over with $2.9 billion to spare regardless of the bundle being promoted as codifying DOGE’s purported financial savings over the following a number of years.

As famous by Blumenthal’s workplace, the quantity wasted by DOGE would have simply coated necessaries clawed again by Trump and the Republicans, corresponding to meals help and Medicaid.

“DOGE was clearly by no means about effectivity or saving the American taxpayer cash,” Blumenthal added for good measure.

Calling All Sherlocks

Politics apart, a Senate subcommittee has restricted sources to conduct investigations. The PSI estimate of $21.7 billion is a lowball determine, primarily based on above-the-rocks findings. Flip over these rocks, and extra waste is all however sure to crawl out. Blumenthal’s workplace lists “substantial administrative and authorized bills, undermining public security and pure catastrophe response, and human prices and well being threats” amongst different areas the bear additional investigation.

Blumenthal additionally held out hope for a extra complete evaluation supported by the investigative sources of inspectors normal at 27 federal companies.

“I urge Inspectors Basic to take up our investigation’s findings and provoke a complete evaluation of DOGE’s careless actions,” Blumenthal concluded.

Careless Or Calculated?

For those who caught that factor about “careless,” that was Senator Blumenthal being a Senator. Many different individuals have give you many extra colourful methods of describing Musk’s short-lived tenure as a public servant in Washington, DC.

For that matter, losing taxpayer {dollars} is only one of Musk’s achievements as head of DOGE. In accordance with a 44-page PSI memo issued in April, Musk and his DOGE chainsaw hacked away at 11 completely different federal companies with dozens of authorized issues pending on his enterprise pursuits. PSI assessed solely 40 out of 65 identified cases and calculated that Musk and his corporations confronted at the least $2.37 billion in authorized legal responsibility, together with these highlights:

As much as $1.59 million in civil and legal penalties for Neuralink’s alleged violations of the Animal Welfare Act, and $281 million in potential legal responsibility from Neuralink’s alleged false or deceptive statements about its product dangers

$1.19 billion in potential legal responsibility on account of Tesla’s allegedly false or deceptive statements about its autopilot and full self-driving options

$633,009 in fines from SpaceX’s a number of failures to comply with rocket launch necessities in 2023

A complete of $713,114 in fines from 29 citations from the Occupational Security and Well being Administration (OSHA) in opposition to SpaceX, Tesla, and The Boring Firm

“The by way of line connecting a lot of Mr. Musk’s selections seems to be self-enrichment and avoiding what he perceives as obstacles to advancing his pursuits. Mr. Musk’s place could enable him to evade oversight, derail investigations, and make litigation disappear each time he so chooses,” the PSI report suggested.

The Tesla Gross sales Nosedive Continues

That memo was issued again in April, and a whole lot of water has handed below the bridge since then. That features the aspect drama of the Epstein case. In a attainable try and separate himself and the Tesla model from Trump, early in June Musk added his voice to the rising clamor over the Epstein recordsdata, all however guaranteeing that it is going to be a protracted, sizzling summer season for President Trump and the Republican Get together.

It’s Mission Completed so far as juicing the scandal goes, however that hasn’t helped Tesla get better its EV gross sales mojo, at the least not but. Including insult to damage, earlier this week Tesla’s former house state of California reported that non-Tesla EV gross sales held up in Q2, whereas Tesla continued to drop.

The information from Europe is simply as gloomy for Tesla. As reported by Reuters earlier right now, Tesla gross sales have fallen by greater than 33% throughout Europe because the starting of the yr. The year-on-year stats for July are notably alarming. “The model’s registrations — a detailed proxy of gross sales — fell 86% year-on-year in July to 163 automobiles in Sweden, 52% to 336 automobiles in Denmark, 27% to 1,307 in France and 62% to 443 within the Netherlands,” Reuters reported (take a look at CleanTechnica’s EV gross sales archive right here).

One of many few brilliant spots is Norway, the place Tesla gross sales have blown by way of the roof in current months. The robust displaying is attributed to the brand new Mannequin Y makeover. Nonetheless, Norway is a comparatively small market, and the pink flags have already popped up. In Might, Christina Bu, secretary normal of the Norwegian EV Affiliation, famous that the Tesla glass is just half full in Norway. Citing the group’s current survey of 15,000 drivers, Bu advised CNBC that “nearly all of respondents stated that politics does affect their alternative of automobile model.”

“As many as 43 % acknowledged that they’d not purchase a Tesla for political causes. We are able to due to this fact solely speculate how a lot Tesla would have bought with out Musk’s assist for the MAGA motion and the Trump administration,” Bu advised CNBC.

Photograph: By way of CleanTechnica archive.