Elon Musk's DOGE Distraction: Tesla's Biggest Bull Loses Patience

Ladies and gentlemen, buckle up! We've got a situation brewing at Tesla that's got even the biggest bulls scratching their heads. Elon Musk, the mastermind behind the electric vehicle revolution, has been spending an awful lot of time in Washington, D.C., leading the Department of Government Efficiency (DOGE). And guess who's not happy about it? That's right, the investors who have been riding the Tesla rocket ship to the moon!



Let's break it down. Tesla's stock has been on a wild ride lately. After a meteoric rise in 2024, the stock has been sliding since the start of the new year. As of February 14, 2025, the stock has generated a negative return of 12%. Now, you might think this is all about the company's uninspiring fourth-quarter earnings report, but I've got news for you—it's not!

The real issue here is Elon Musk's time in Washington. Over the last month, Musk has been spending a lot of time at the White House working on the DOGE effort. And investors are starting to question if he's losing focus on what should be his main priority—Tesla. Now, I know what you're thinking: "But he's always been a busy guy!" And you're right! But this is different. This is about the future of Tesla, and investors are getting nervous.

Now, let's talk about the elephant in the room. Elon Musk's relationship with President Trump. When Trump won the presidential election in 2024, Tesla's stock went on an epic bull run. Investors assumed that Musk's relationship with the president would bode well for Tesla's future, especially when it comes to regulatory hurdles for self-driving vehicles. But now, with Musk spending so much time in Washington, investors are starting to wonder if he's getting too cozy with the Trump administration.

But here's the thing: I think this sell-off is overblown. Elon Musk is a serial entrepreneur who has been at the center of a number of successful businesses. Beyond Tesla, he is the CEO of SpaceX and has founded a number of billion-dollar start-ups including Neuralink, The Boring Company, and xAI. He also owns social media platform X (formerly Twitter) and is its executive chairman. So, Musk is a busy person in the first place, and DOGE doesn't really change that. For years, he has been involved with a number of sophisticated businesses spanning space exploration, logistics, and AI—all while running the show at Tesla.



Now, let's talk about the potential long-term implications for Tesla's growth and innovation. On one hand, Musk's relationship with Trump could potentially benefit Tesla. For instance, Roth Capital Partners upgraded Tesla's stock to "buy" and raised its price target to $380, citing Musk's relationship with Trump as a factor that could increase demand for Tesla vehicles. This is because Trump's policies might favor Tesla, especially in areas like self-driving technology and robotaxi opportunities, as noted by Stifel, which also boosted its price target to $411.

But on the other hand, the core operations of the company do need a new jump-start, but I think this is quite possible over the next several years, especially given his relationship with President Trump. For now, I wouldn't worry too much about Musk's focus on DOGE. If you're an investor with a long-term horizon, I think now is a good opportunity to take advantage of Tesla's low stock price.

So, what's the bottom line? Tesla is a stock that has always traded out of the bounds of traditional valuation metrics. The company has accelerated sales and profits in recent years, and the stock trades in an entirely different universe when compared to other automakers. Tesla is really a technology company that happens to sell cars. It's investing heavily in an autonomous vehicle fleet as well as dedicating a good portion of its artificial intelligence (AI) budget to Optimus humanoid robots, so Musk has a vision for Tesla well beyond EVs.

For these reasons, I've always thought that it's a little dicey driving your investment decision in Tesla based purely on valuation metrics. To me, the ongoing sell-off is disconnected from the fundamentals of the business. The core operations of the company do need a new jump-start, but I think this is quite possible over the next several years, especially given his relationship with President Trump. For now, I wouldn't worry too much about Musk's focus on DOGE. If you're an investor with a long-term horizon, I think now is a good opportunity to take advantage of Tesla's low stock price.

So, buckle up, folks! The ride might be bumpy, but Tesla is still a rocket ship to the moon. Don't miss out on this opportunity to buy the dip!