On Friday, Commerce Secretary Howard Lutnick criticized Tesla Inc. TSLA CEO Elon Musk’s management of the Division of Authorities Effectivity or DOGE, saying the billionaire prioritized firing staff over slashing waste, fraud and abuse, undermining the initiative’s authentic mission.

Lutnick: Musk Took The Mistaken Lesson From Twitter

Talking on the premiere of The Axios Present, Lutnick mentioned Musk utilized his Twitter-style playbook to the federal authorities, slicing jobs aggressively however reaching little by way of significant financial savings.

“I assumed Elon obtained caught up in different individuals’s aims,” Lutnick mentioned. “The main target ought to have been on slicing the waste, fraud and abuse and the individuals you possibly can do over time… I assumed he obtained that backward.”

Lutnick added that the federal government might possible be trimmed by 10% to fifteen%, however he argued that change ought to come by cupboard secretaries fastidiously evaluating their departments reasonably than by sweeping layoffs.

See Additionally: Trump’s Tariff Letters Spark ‘Excessive Degree Of Uncertainty And Volatility,’ Says Economist Mohamed El-Erian

DOGE Financial savings Fall Quick Of Lofty Targets

Musk began spearheading DOGE in January 2025 after President Donald Trump returned to workplace, pledging to eradicate $1 trillion to $2 trillion in annual federal spending.

He stepped down 4 months later. On the time, this system had documented solely about $175 billion in financial savings. Right now, its web site lists financial savings of $206 billion, largely from contract cancellations, fraud detection, asset gross sales and workforce reductions.

Musk’s Temporary And Controversial Tenure

Musk’s short-lived four-month tenure was outlined by sweeping layoffs throughout federal companies, the shutdown of USAID, and a string of contentious messages, together with “fork within the street” resignation emails.

His method mirrored his strikes at Twitter, the place headcount was lower dramatically after his 2022 takeover.

Regardless of falling wanting expectations, Trump honored Musk in Might with a ceremonial golden key to the White Home. On the time, Musk insisted DOGE would “solely develop stronger” and described it as “a lifestyle.”

Conflict With Trump And Musk’s Exit

Musk resigned after publicly criticizing Trump’s $3.8 trillion price range plan, which he known as dangerous to DOGE’s mission.

In a later interview, Musk admitted he might need devoted an excessive amount of time to politics, describing his involvement in authorities as misallocated time.

DOGE continues to function with out Musk or a lot of his allies, with present management specializing in spending cuts over layoffs.

“DOGE continues to be pursuing that waste, fraud and abuse I believe it’ll be efficient,” Lutnick mentioned. “Much less efficient than I might’ve hoped, however I believe it is nonetheless going to be efficient.”

Benzinga’s Edge Inventory Rankings point out that TSLA maintains a powerful upward trajectory throughout quick, medium and long-term intervals, with extra efficiency insights out there right here.