The Big Story 

Elon Musk’s role in the Trump administration is complicating his business ventures, as the tech billionaire pushes forward with efforts to slash the federal government and budget in the face of mounting criticism.  

© Associated Press pool

Tesla’s stock has plummeted more than 50 percent since late last year, while demonstrations are popping up at the electric vehicle company’s showrooms across the country in protest of the Trump administration’s Department of Government Efficiency (DOGE). 

Musk has also faced backlash, especially in Europe, for his criticism of the Ukrainian government and support for far-right political parties on the continent. 

The Tesla CEO admitted Monday he is having “great difficulty” running his various companies while juggling the work of DOGE. He also called the backlash a “tough setting.” 

As he spends more time in Washington with a focus on DOGE, investors are taking note — while critics are taking out their frustrations on his companies.  

“The DOGE efforts have now intertwined Tesla into a brewing political firestorm,” Wedbush Securities analysts wrote in an investor note Tuesday. 

“We believe this is a ‘moment of truth’ for Musk and Tesla … if Musk continues to head down the DOGE path 110 percent and showing no attention to Tesla during this turbulent time, then brand damage will become more pervasive,” the note continued.  

The criticism against DOGE for its mass layoffs and spending cuts across the federal government is making Tesla a target of some of the same groups that once backed Musk’s EV push for the environment.  

“Musk is synonymous with Tesla and Tesla is synonymous with Musk,” Wedbush Securities analyst Dan Ives told The Hill, adding, “The brand issues are the bigger worry.” 

Tesla’s stock tumbled 15 percent Monday, the lowest the company’s shares have been since October and the largest drop since September 2020.

Musk brushed off the numbers, writing on his social platform X that it “will be fine long-term.”  

Read more in a full report at TheHill.com.

Welcome to The Hill’s Technology newsletter, I’m Julia Shapero — tracking the latest moves from Capitol Hill to Silicon Valley.

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Crypto Corner 

Antitrust groups push back on stablecoin bill

Annabelle Gordon

Welcome to Crypto Corner, a new feature focused on digital currency and its outlook in Washington.

Several antitrust-focused groups are urging Democrats on the Senate Banking Committee to oppose stablecoin legislation the panel is set to consider Thursday.

Sen. Bill Hagerty’s (R-Tenn.) GENIUS Act seeks to create a framework for stablecoins, cryptocurrencies tied to another asset to ensure a more stable price. He released newly updated bill text Monday night.

The legislation has garnered support from some Democrats, including Sens. Kirsten Gillibrand (N.Y.) and Angela Alsobrooks (Md.), who joined as co-sponsors.

However, the Tech Oversight Project, Accountable Tech, American Economic Liberties Project and others argued the bill would “open the door for a few gargantuan Big Tech companies, including Elon Musk’s X, to launch their own private currencies.”

“For decades, U.S. law has maintined a critical firewall between banking and commerce to prevent corporations from monopolozing both payment systems and the marketplaces they control,” they wrote.

“The GENIUS Act would tear down that firewall,” they added, suggesting tech giants like Amazon, Apple, Google and Facebook could operate their own stablecoin payment networks.

A fact sheet from Senate Banking Chair Tim Scott‘s (R-S.C.) office pushed back on this criticism Wednesday, arguing “a payments product is inherently different than banking.”

ICYMI: The House voted Tuesday evening to repeal an Internal Revenue Service rule that would have extended certain reporting requirements to the crypto industry, including decentralized finance platforms.

The rollback, which garnered support from all House Republicans and 76 Democrats, follows a similar vote in the Senate last week.

The House version now heads back to the upper chamber for another vote before heading to President Trump‘s desk.

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