Here’s how bad DOGE has been for Elon Musk’s business

Elon Musk’s foray into government has proven disastrous for his business life.

Since taking up work for President Donald Trumps’ so-called Department of Government Efficiency (DOGE), Musk’s electric car company Tesla has seen sales slide and has become a target for protests. Now some believe that damage could be terminal and that Musk poses a risk to companies outside of his own.

The Reputation Risk Index looks at reputational threats facing companies and organizations. It recently found that being associated with Musk posed the second biggest threat to companies, between the harmful or deceptive use of artificial intelligence and backtracking on DEI. The index, which is based on a survey with 117 public affairs leaders and former heads of state, found it’s not just being associated with Musk that’s risky, but being singled out and publicly criticized by him.

“With his controversial omnipresence in the media landscape, 28% of the council identified this association as a top reputational risk, highlighting Musk’s impact on businesses that extend well past his own,” Global Risk Advisory Council chair Isabel Casillas Guzman said in the report.

Wedbush Securities analyst Dan Ives predicted in a note Sunday that even if Musk were to quit DOGE and get back to his car company “there will be permanent brand damage.” And if Musk stays in government, brand damage could grow for Tesla, calling it a “code red situation” for the company.

Musk “needs to leave the government, take a major step back on DOGE, and get back to being CEO of Tesla full-time,” Ives wrote.

Musk’s hard turn to DOGE has shown that mixing business with politics can backfire, especially for a public CEO of a company that relies on customers who in large part don’t share his views. If Musk wasn’t planning on leaving his post as a “special government employee” after the 130-day limit comes up, he might find a more persuasive business reason that it’s time to get back to his day job.