Cathie Wood, CEO of ARK Invest, has publicly backed Tesla Inc. (NASDAQ:TSLA) Elon Musk’s appointment to lead the Department of Government Efficiency (DOGE).
What Happened: In an interview with CNBC on Friday, Wood said that Musk’s understanding of technology and data will be key in his new role at DOGE.
DOGE, named after the cryptocurrency Dogecoin (CRYPTO: DOGE), aims to minimize waste, eliminate unnecessary regulations, and reorganize agencies to enhance efficiency.
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Wood stated that Musk’s companies, including X, formerly Twitter, Neuralink, and SpaceX, gather vast amounts of data, putting him in a unique position to improve government operations.
“The way we’re looking at this is, Elon understands we are at the threshold of a convergence among many technologies,” she stated.
Adding, “AI being at the center of it, and proprietary data is winning. So he has more proprietary data from all of these companies than I think any other CEO.”
Musk, who was appointed by President-elect Donald Trump, will spearhead the commission aimed at reducing the U.S. federal budget, to cut up to $2 trillion.
Vivek Ramaswamy, a former Republican primary candidate, will co-direct the group with Musk.
Why It Matters: On Thursday, the official X, formerly Twitter, account of DOGE called for high-IQ candidates willing to work 80+ hours a week to streamline government spending and cut bureaucracy.
This criterion is similar to Musk’s well-known 2022 late-night email to Twitter employees, where he encouraged them to be “extremely hardcore” and commit to “long hours at high intensity.”
However, analysts have warned that Musk’s efficiency plans should not be underestimated, but it will likely take many years to achieve $2 trillion in government spending cuts.
Trump has previously stated that the work of the DOGE department is expected to be completed by July 4, 2026, at the latest.
Price Action: Dogecoin is currently priced at $0.378, reflecting a 4.14% rise in the last 24 hours. However, its trading volume has dropped by 37.06%, reaching $10.12 billion as of this writing.
Tesla shares closed Friday’s trading up 3.07%, ending at $320.72. In after-hours trading, the stock saw a slight increase, reaching $320.74 at the time of writing, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo courtesy: World Economic Forum
