Musks

Elon Musk’s ambitions were impossible to comply

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Tesla has presented results. And they have been so bad in this first quarter of 2025 that it would be necessary to travel four years ago to find similar figures. There are various reasons but Elon Musk’s ambitions and promises are having their direct consequences on the company. An entire life. Four years for Tesla is a whole life. The company has been growing at a devilish pace until last year. But 2024 already closed it with sales lower than the previous year despite do everything possible to avoid it. In the first quarter of 2025, the benefits have fallen to just over 400 million euros, 71% less that in the same period a year ago. You have to go back to 2021 to find such a low figure. The problem for the company is that, then, it sold one less car (the Cybertruck was just a promise) and still did not reach one million units sold. That is, going back four years for Tesla is to go back a long time because the company was very different. A 2025 to shake. The first three months of the company have been really bad. To the point that They would have lost money If not for the Sale of regulatory credits (The payment made by other companies to meet in the average emissions by submitting to the regulators under the same group). In the absence of knowing to what the update of Tesla Model and is directly affecting its sales, the truth is that the company is leaving huge falls in countries like Germany or Francethe ones that sell the most electric cars in Europe. In the German country, in fact, they reach 60% fall. At the same time, their actions have collapsed and right now they cost half that in December 2024. This future of the actions must be taken prudence since they are intimately linked to the figure of Elon Musk. In fact, despite the bad results, the confirmation of the company’s CEO to abandon part of its governmental tasks to focus on Tesla has raised its price by more than 10%. Musk. Will reduce your work in the United States government “significantly”. This has been the word used by Elon Musk to quantify the amount of hours he will stop using in front of Doge (the department that leads within the State) to dedicate it to Tesla. This task has been, for some investors, the reason why the company has shipwrecked in recent months. For others, such as The New York Timesit is evident that there is damage to the company’s image with the statements and gestures of Elon Musk. The anger of those who have promoted BYcots to the Company They have focused, above all, to highlight the attitude of their greatest shareholder. A low profile in the government can be understood as a longer time dedicated to Tesla or as a lower public exposure and, therefore, a less worn image. The first interested, in fact, It is Musk itself whose fortune depends largely on the future of Tesla. But not everything is political. It seems unquestionable that Tesla’s image is irremediably associated with the figure of Elon Musk. He Financial Times He came to qualify the owner of the company as “demolition ball.” But there are other edges that deserves to stand before accusing Musk’s political drift as the only guilty of the bad results. The model hangover and. Something that explains the low sales of Tesla is that Tesla Model and has been renewed in the first weeks of 2025. Several factors must be taken into account: The lines have had to be renewed, so production has been reduced. Until in a few months we will not know how many possible buyers were waiting for the update before formalizing the purchase. To sell the Tesla Model and in stock, great discounts and very attractive financing have been applied, greatly reducing the profit margin. In the coming months we will begin to see how much the update of Tesla Model is interested and in front of the competition. In 2024, Tesla sold 1.77 million cars in the sum of the Tesla Model 3 and Model Y. of them, 1.09 million were represented by the electric SUV despite the fact that it was already known that the car was going to be renewed. Any mishap that hurts Tesla Model sales and is, right now, a problem for the company since half of sales are from this car. A cybertruck that is failing. Another of Tesla’s great problems and, probably, its greatest commercial failure. He Tesla Cybertruck He promised to be a supervent. The volume of reservations I encouraged to think about the car in these terms. But After the first feversales have collapsed to the point that analysts talk about the company will only produce 55,000 units a yearcompared to 250,000 promised units. Tesla had the opportunity to Make your cybertruck an aspirational vehicleof low production and great benefit that will report benefits in brand image. However, he has starred Memes on social networks And above all, Review calls have been continuous for all kinds of reasons, damaging its value. To the point that the company already seeks a solution to place thousands of them in markets outside the United States. The car that never comes. At the same time, Tesla and Musk have been promising for years An electric car of $ 25,000. One that has been impossible for the company to sell. If we do not have an electric car of $ 25,000, it is simply because the company has not found a way to make it profitable. In recent months we have known that the alternative will be a kind of Tesla Model and in miniature. But the car should arrive as a more affordable option than the current SUV as it would touch $ 40,000, according to The Wall Street Journal. In the same terms it was expressed Reuters Recently and in … Read more

Tesla was a transatlantic for Wall Street. Elon Musk’s political adventure the iceberg that almost sinks with his fortune

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Tesla has been synonymous with Innovation and success In the electric mobility sector, with an admired brand image and a privileged position in the stock market. The Apple of the automotive, Some qualified it. However, Elon Musk’s foray into American politics has triggered a series of events that have put both reputation and reputation in check The financial results of the company. Musk’s political experiment It has had consequencesdirectly affecting public perception and Tesla’s sales. The destination of Tesla and that of his CEO go hand in Your personal fortune. Tesla before Musk politicization. Before Elon Musk got involved actively in politicsTesla was considered one of the world’s great technological companies and with potential for exceed billion dollars In stock market capitalization. The company was rubbed by giants such as Apple, Microsoft and Amazon, and its Growth seemed unstoppable Thanks to the confidence of investors and the growing demand for electric vehicles. In that scenario, Musk’s personal fortune also reached record figures, exceeding the second time the roof of 300,000 million dollars. Tesla was seen as a safe bet for its investors and its founder was generously rewarded for it. Elon Musk arrived sweeping everything in politics. Elon Musk’s politics landing divided the opinions of investors among whom he thought that his positioning together with Trump (openly contrary to electric cars) would provide strategic advantages to Tesla, and those who saw the brand the brand endangered. For a while, the euphoria of the markets for the change of government gave wings to the company’s actions that marked records after day, while Musk’s fortune shot overcoming the 420,000 million dollars. The panorama changed radically after the elections and Musk’s role at the head of the Government Efficiency Department (Doge). The Tesla reputation He quickly deteriorated when the new department began applying unpopular measures and Musk became the “demolition ball” of the State, As described The Financial Times. Musk and Tesla are one. The image of Tesla is closely tied to that of Elon Musk, so when Musk’s popularity collapsed, he dragged with Tesla, plunging her into An unprecedented reputational crisis. The company sales 13% fell in the first quarter of 2025, while revenues were reduced by 9%, up to 19,335 million dollars. The net profit sank 71%, leaving only 409 million dollars. From the financial crisis of Tesla there are not even those buyers who have decided to sell their Tesla in 2025, who have seen how, due to the reputation of their CEO and the largest number of teslas put up for sale, its price is being depreciated In the second -hand market. Musk’s popularity (lost). A recent survey performed by CNBC He has revealed that 47% of respondents have a negative opinion of Tesla, while 27% maintain their positive opinion of the manufacturer. Its CEO moves in very similar percentages with 50% of negative opinions and 36% of respondents who give them their support. However, as Micah Roberts, a partner of Public Opinion Strategies, the republican pollster who carried out the study, “where Tesla is stronger is among the people with less likely to buy an electric vehicle”, so those who support the political position of their CEO, will probably never be customers of the brand. Tesla forced retirement. Before the collapse of the results and the pressures received From the Republican bench and by investors of Tesla, Elon Musk has recognized in an evening that has not dedicated enough time to the company. In the presentation of results he has promised reduce “significant“His political involvement from May to get the brand out of the problem in which he himself has put it. In a few months, Musk’s fortune has experienced the same ascent and fall as Tesla. Although the value of its actions in the company has decreased considerably, the Impact on your heritage personnel have been damping by the Spacex growth and of XAI, your AI company. If it weren’t for good performance of these companiesTesla’s debacle would have had even more serious consequences For Musk’s richness, which is currently maintained at the same levels That when everything began. In Xataka | “Sader than a sack of bricks”: Elon Musk attacks the ideologist of the US tariff policy In Xataka | Elon Musk has forged the fame of a bold founder: he did not create either of the two companies that made him a millionaire Image | Flickr (Gage Skidmore), Unspash (Dmitry Novikov)

NASA has cut 420 million dollars following Doge’s guidelines. It is Elon Musk’s favorite number

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NASA has announced a 420 million dollar cut in consulting contracts and other suppliers. It is a strangely familiar number. A cut commanded by Doge. Although NASA has not given many details, the contracts to be cut are considered “redundant” or “misaligned with the essential priorities” of the agency, following the guidelines of the Department of Government Efficiency (Doge), the auditor body created by Donald Trump and headed by Elon Musk. From canceled contracts, the largest cut comes from the NASA socio -economic application and data center, valued at about 30 million dollars, although with an effective savings of 19.4 million. Other of the confirmed cancellations are four agreements of 15 million dollars each with the firms of consulting Booz Allen Hamilton, Deloitte, Guidehouse and McKinsey & Co. The termination of these and other contracts will mean a saving of 420 million dollars for NASA. Elon Musk’s favorite number. There is an extraordinary coincidence in this matter and it is Elon Musk’s love for number 420. The founder of Spacex He likes to remember which was born 69 days after April 20 (4/20, in American format). But the number 420 became more present in his life since a club was smoked during the Joe Rogan podcast. “420” It is a reference to the “time of smoking marijuana”, 4 and 20 in the afternoon. For Musk also represents the day that He withdrew the verified blue check to X users who had it for free since the time of Twitter (04/20/2023). Wave First starship in history to be stacked (Booster 4 + Ship 20). Or one of the most transcendental tweets of his career: when he announced that I was going to privatize Tesla at a price of $ 420 per share. NASA scientists are worried. While only consulting cuts have transcended, the scientific community that depends on the space agency is concerned about the possibility of even greater or layoffs (of which NASA, for now, for now only He has seen 23 for the closure of three offices). Although less affected than diversity programs, Doge cuts also focus on branches of health, climate and natural resources, which NASA investigates. In addition, it is rumored that the 2026 budget for the agency’s scientific programs could be drastically reduced (up to 50%, According to Space News). Musk’s conflict of interest. While Doge is not an official government department, and therefore Elon Musk is not a senior official, the most complicated issue of all is that the employer is positioned to obtain multimillionaire contracts from the federal government. The Pentagon has already demonstrated its interest in Starship as a military transport, and NASA depends on the rocket to take astronauts to the moon. Starlink is also a key strategic asset for the United States, and Spacex is building a spy version called Starshield for the NRO. Finally, Trump’s nominee to direct NASA is Jared Isaacman, Musk’s commercial partner in two of Spacex’s most important commercial missions. Image | Elon Musk (X) In Xataka | China is getting closer to overcoming NASA in its Martian mission. And just invited other countries to join

Musk’s political ambition has turned Tesla into an ideological lightning rod. And the whole company is paying

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Tesla’s action touched its historical maximum at the end of 2024, just in time for Christmas. Since then You just made receiving coala paradox for the leader of the electric transition. From $ 480 to 240. Half. 50% fall (and 15% in a single session last Monday) is no longer a market correction or temporary fluctuation. Is the materialization of the political risk that Musk has accumulated deliberately during the last two years. Musk, with its lights and their shadows, It is an atypical phenomenon and a case study like or not. But he has also starred in his own even more atypical phenomenon in recent business history: the transmutation of an aspirational brand in the object of cultural repulsion for a part of its original client base, as stated The Verge. Tesla built an empire on very specific pillars: Technological innovation Environmental sustainability. A vision of the future techno -optimist. It was a perfect car – figured and literally – for progressive consumers with purchasing power that wanted to signal not only financial power, but avant -garde values. Musk’s political turn has caused a cognitive dissonance too heavy For a good part of this segment. This ideological fracture can be put figures. In California, one of the great progressive bastions and originally the most important market for Tesla, Model 3 sales They collapsed in 2024. In Europe, collapse has been even greateralthough it would be unfair to signal only to Musk’s personal future, since here a perfect storm has come together. They are more typical figures of A brand exodus – Here we can point to Chinese cars, but in the United States not – than a simple sector recession. Especially because even in Europe we have seen A growth of 34% in electric car sales at this time. The most visible demonstration of this brand crisis is the spontaneous emergence of an ecosystem of embarrassed owners. From apology stickers (“I bought it before Elon went crazy”) to the replacement of the Tesla logo with other generic badges. They are drivers who seek to dissociate their creator’s car. The protests have climbed to pure and hard vandalism, with concessionaires Tiring in Oregon, Molotov cocktails in Colorado and some Cybertruck on fire in Seattle. Tesla has become An ideological lightning rod. Meanwhile, competition has taken advantage of that vulnerability. Hyundai, Kia, GM U Honda (let’s mention Chinese brands on this side of the Atlantic) have been launching electrical alternatives perhaps not as painting as a tesla, but already attractive and more or less reasonable prices. In this equation There is a blind spot: Musk itself. His political ambitions and his parallel agenda with Trump have eclipsed their business vision. Tesla needs more than ever its affordable model – about $ 25,000, The repeated and deformed promise since 2018– To compete against byd, omoda, Jaecoo and company. But Musk is aspiring to something much older, maybe even too conceptual, such as Humanoid robots. Or with the promises of robotaxis that do not finish arriving … while Waymo already operates real fleets of autonomous taxis. Tesla’s technical credibility has also worsened. The promise that all cars manufactured after 2016 contained the necessary hardware for totally autonomous driving turned out to be true. Musk He admitted that they will have to replace on board computersa process that he confessed “painful”, and now faces collective demands for deceptive advertising. Tesla was, is and will surely be the king of the electric car in many ways, but something has changed lately. Trump can convert the White House into a Tesla dealership and proclaim in your social network Your absolute support to Muskbut You cannot reverse financial physics. The destruction of value has been monumental: 800,000 million dollars of stock market capitalization and 100,000 million of Musk’s personal heritage have evaporated in less than one semester. Even some historical shareholders, loyal to Musk, They have sold mass actionssuch as Robyn Denholm (the president of the Council) or James Murdoch (son of Rupert). There is a fire in Tesla, but that is not too worrying, every company happens at some time. The problem is that it is self -induced. Tesla will survive, surely, it has a solid cash position and hard -working economies. We are no longer in 2019. The real question is whether you can recover your old statusthat of Visionaria company, while its founder is still determined to sacrifice it on the altar of its political aspirations. The divorce between Tesla and a part of its original customer base seems difficult to reverse in the short term. The maximum irony of this story may be that the greatest enemy of the original mission of Tesla – to school the world transition towards sustainable energy – turns out to be Musk itself. Outstanding image | Tesla In Xataka | Tesla’s most buoyant business is also the most unknown: energy generation and storage

supporting Elon Musk’s version

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After nine months orbiting the land due to the Boeing Starliner spacecraft problemsAmerican astronauts Butch Wilmore and Suni Williams are ready to return home in a ship operated by Spacex. It was at the end of August when NASA decided that both would remain at the International Space Station until the next rotation of crew members in early 2025, but that everything goes as planned has not prevented its return from being fogged by political controversies. The context. Wilmore and Williams were thrown into space in June 2024 as part of a test mission to standardize the Starliner ship, which Boeing and NASA They hoped to start using For regular astronaut transport to ISS, as Spacex does since 2020. The mission was going to last only 10 days, but the helium leaks and the failures in the propulsion of the Starliner forced to prolong the stay of the astronauts until NASA decided May the ship go empty and its crew will stay in the ISS waiting for the return of the Spacex CREW-9 mission. After nine months of experiments in microgravity and space walks to perform maintenance tasks, Wilmore and Williams have a return date: March 19; A few days after the crew members of the CREW-10 mission, whose launch It is scheduled for March 12get to the station. The controversy. The decision that NASA made at the time seemed purely technical: prioritizing the safety of its astronauts forcing Boeing to exorbit the Starliner without its occupants to, then, launch the CREW-9 mission with two empty seats for the return of the “stranded” astronauts in the ISS. However, there is another version of the facts. Elon Musk has been in charge of spreading That it was not a technical decision, but a political decision, taken by the government of Joe Biden before Donald Trump was invested president of the United States. Musk offered to send an additional Crew Dragon ship to bring astronauts as soon as possible, but the White House refused, according to the businessman. “For political reasons.” The controversy, fueled by the accusations of Musk and Trump himself in different interviews, intensified with a crossing of hostile statements between Musk and the European astronaut Andreas Mogensen, who publicly accused Musk of lying, which caused A particularly aggressive reaction of the founder of Spacex. He said: “You are a complete mental retardation.” The script rotation. Although Elon Musk’s statements were refuted by NASA, Butch Wilmore and his family have put another possibility on the table: that Musk is right. In a recent press conference from the ISS, The astronaut gave credibility to the Musk version stating that the businessman had been “absolutely factual.” Although he also clarified not to know the exact details of the decision process. He added more firewood his daughter Daryn in a Video uploaded to a social network in which he declared to be very frustrated with the situation: “There is a lot of politics, there are many things that I have no freedom to say and that I do not know fully. But there have been problems. There has been negligence. And that is why this has continued to delay. There has been one problem after another.” What does NASA say. NASA’s senior officials, such as Ken Bowersox and Steve Stich, reiterated that the extended stay of astronauts was motivated only for technical and operational reasonsrelated to the security and logistics of the International Space Station. Spacex offered alternatives to the official plan in 2024, admitted the officials, but were rejected not by political motivations, but by budgetary and technical considerations that prioritized the operational continuity of the ISS, they sentenced. As an end point, the NASA has published a summary Of all that Wilmore and Williams have done these nine months with their colleagues from the CREW-9 mission: more than 900 hours dedicated to key scientific research on biomanuffing, space agriculture, advanced exercise systems and studies on microorganisms in microgravity. Images | POT In Xataka | Jared Isaacman still does not direct NASA, but it is already seen as the last nail in the coffin of a space giant: Boeing

Musk’s lawyers want to change that law

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Elon Musk has not lost the salary bonus that agreed With Tesla in 2018. Before The refusal of justice To grant it, he has made a determination: change the law to give him right. His lawyers are writing a proposal for bill that will change the rules of the game for companies in Delaware and compensation to their managers. If a law does not prove you right, change it. The law firm that represents Elon Musk and Tesla in their salary dispute with the company’s investors has been writing a bill aimed at changing corporate legislation in Delaware, as has confirmed the firm to CNBC. However, and despite the fact that the bill stops tailored to the case of Elon Musk, the buffet claims not to act on behalf of any specific client. “The statutory changes are necessary to restore the basic principles that have been the distinctive seal of Delaware for more than a century and ensure that Delaware remains the preeminent jurisdiction for incorporation,” said Lisa Schmidt, president of the law firm in statements to statements to the North American medium. Salary bonds do not touch. He bill that is proposed seeks to modify the Title 8 of the Delaware Code related to the fiduciary duty of executives and members of the Board of Directors that includes the General Corporations Law. The main approach of the proposal is to limit the demands related to executive compensation packages, as with the billionaire Bono that Elon Musk agreed with Tesla. This law proposal comes at a critical moment, since Musk faces the appeal of trial in the state of Delaware, where justice already has denied twice The payment of that bonus for considering it an “unfathomable and unfair sum.” Ready for vote. The bill written by the firm Richards, Layton & Finger that represents Musk and Tesla, has already been presented at the General Assembly of Delaware. It must now be voted in the two state chambers, and ratified by Democratic governor of Delaware, Matt Meyer. Brian Quinn, a corporate law professor at Boston College, assured CNBC that this proposal has not gone through the usual channels of the bills, which for decades have been debated and written in the Corporate Law Council of the State Bar Association of Delaware, not in a private law firm. Doubts about its retroactive effect. State senator Bryan Towsend, assured to ABC News that the effect of the new law “is not retroactive and would not affect the litigation related to the Elon Musk compensation package in Tesla.” Sarath Sanga, professor of corporate law at Yale University, does not coincide with this diagnosis of retroactivity and assured that: “It is possible. There is nothing in the law that demands it and there is nothing that prevents it.” Ann Lipton, a law professor at the University of Tulane, agreed with Sanga, noting that “this sends a strong signal to the Supreme Court of Delaware that we want this to interpret this to return to Elon his salary.” Brian Quinn also aligns with the opinion of his two colleagues in Yale and Tulane. “It is totally possible that the court revokes the opinion of the trial for reasons not related to this amendment and the Salary Package of Elon Musk is restored.” The new standard leaves shareholders unprotected. “The true role of corporate law is to protect minority investors. With this bill, the legislature is saying: ‘Do you know what? You have to protect them less,” explained Quinn to CNBC. Senator Elizabeth Warren, a higher rank member of the Senate Banking Committee, described the new bill as the “Musk’s last plan to cheat the US people and enrich themselves and their multimillion -dollar companions. Musk wants to write their own laws To snatch tens of billions of dollars from Tesla’s shareholders, after the courts said they could not do it, ” The senator declared for Massachusetts. In Xataka | A government “Extremely Hardcore”: Elon Musk is applying to the US the same recipe that has applied to all its companies Image | Flickr (Steve Jurvetson), Pexels (Towfiqui Barbhuiya)

Sam Altman had a plan to turn Openai into a For-Profit. Elon Musk’s megaoferta will complicate it a lot

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A group of inversones, at the head of which is Elon Musk, has made An offer of 97.4 billion dollars to buy the non -profit organization (Nonprofit) that OpenAi controls. We have a new soap opera in sight, but this time the story has a lot of crumb. Altman and Musk, confronted. Sam Altman published a message in x mocking the offer: “No thanks but we will buy Twitter for 9,740 million dollars if you want,” making it clear that for them Twitter (x) has very little value. Musk in turn answered that message In X calling Altman “scammer.” How much OpenAi is worth? A few months ago Openai completed a colossal financing round of 6,600 million dollars. According to experts, that made the company’s valuation grow then Up to 157,000 million dollars. But maybe that is not the question, as we will see later. And SoftBank wants to invest a mockery. In recent days Data have appeared according to which softbank would invest A unusual 40,000 million dollars In Openai, which would fire the valuation of the company even more, up to 260,000 million dollars. Musk’s offer therefore seems low. Probable objective: complicate Altman’s life. It does not seem therefore probable that the offer progresses, but analysts say that the reason is another. Sam Altman is trying to have Openai ceases to be a nonprofit to be a conventional for profit courage (Forprofit), But that transition is complex. A complex structure. To “separate” from the nonprofit part, Altman and his team must compensate for the nonprofit agency that controls it compensation, or giving a minority participation in the company. As they point out In The New York TimesOpenAI has more than 2,000 employees, but the NGO that controls it has only two employees and 22 million dollars of cash. What Musk wants is precisely to buy the NGO to have legal control over OpenAI that this nonprofit agency exercises right now. How much is the Nonprofit? That can be the key question. This body has not been given an assessment although some They estimate the value of about 40,000 million dollars. That is precisely what Elon Musk wants to force to do with this offer. The purchase proposal could force the part Forprofit of Openai to spend more to achieve its independence from the Nonprofit and complete that desired transition by Sam Altman. An offer with a lot. Analysts like Sheel Mohnot indicate that OpenAI should give the nonprofit a 25% participation to ced Nonprofit It would be approximately 65,000 million. Again, much less than what Musk offers, which can complicate things to Altman when establishing the fair Market Value (FMV, fair market assessment) of the Nonprofit. War for AI. After Donald Trump’s power in January, the re -elected president of the United States supported the Stargate project To invest 500,000 million dollars in multiple data centers for AI in the country. Trump described the initiative as “the largest infrastructure project in history, from afar.” Openai and Softbank are the main value of such an initiative, which by the way, Musk criticized. That may have been a small blow to the now almost idyllic relationship between Trump and Musk. And war between Musk and Altman. Elon Musk sued Altman and Openai In August 2024, and for a long time he tries to compete with OpenAi through his startup XAI. The tycoon has already completed investment rounds that value their startup at 50,000 million dollars (more than Ford), and has a data center and a Gigantic Supercomputer, Colossus. The tension between Alman and Musk comes from afar: both are co -founders of OpenAi, but Musk got too soon. And meanwhile, where is Grok 3? The offer contrasts with a situation in which Xai, despite all its resources, does not seem to advance to the rhythm that its US competitors or China. The output of Deepseek R1 It has caused a new impulse in the market, especially in the reasoning models, but in Xai they seem to work in Grok 3, an evolution of their traditional chatbot. There is no news about whether they have a Deepseek R1 competitor and OPENAI O1but not if they are working on their own alternatives to AI agents as Operatorfrom OpenAi. Images | Brazilian Ministry of Communications | Village Global In Xataka | Copilot, Chatgpt and GPT-4 have changed the world of programming forever. This is thought of programmers

Elon Musk’s DOGE would seek to eliminate the penny coin due to its cost

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Donald Trump’s entry into the presidency has been dizzying. He has already approved several measures through his executive orders. Within them, he created the Department of Government Efficiency (DOGE) that will be directed by billionaire Elon Musk. And like the president, the owner of X already has his first objective when assuming his new position: remove the penny. According to a recent post on XDOGE wrote that the cost of producing a penny in the United States exceeds its nominal value, which makes it an unnecessary expense for taxpayers. According to the data provided, the US government currently spends more than 3 cents to manufacture each penny, while its value is just 1 cent (¢1). The DOGE highlighted that the US Mint produced more than 4.5 billion pennies in fiscal year 2023, representing about 40% of all coins in circulation. This process cost taxpayers more than $179 million dollars in that same year.. This figure reflects a considerable increase, since in 2016 the cost of manufacturing a penny was only 1.5 cents, less than half of what it costs today. The focus of DOGE is not limited to just the penny. Under Musk, the goal is to reduce federal spending significantly. In previous statements, former President Donald Trump assured that DOGE would provide recommendations to “cut excessive regulations, eliminate unnecessary spending and restructure federal agencies.” Musk, for his part, has made it clear that his group aims goal to reduce annual federal government spending by $500 billion. The rising cost of producing a penny is not new. According to the US Mint’s annual report for 2024, now Approximately 3.7 cents are spent for every penny manufactured and distributed. This is due in part to the increase in the price of zinc, the main material used in its manufacture, whose cost per metric ton has doubled in value since 2016. Over the years, there have been several proposals to discontinue pennies minting, including a suggestion in 2015 by then-Treasury Secretary Jacob Lew. However, some economists have warned that Removing pennies could come with complicated side effects, such as rounding off prices to multiples of 5 centswhich could lead to increases in the costs of small products. Other countries have made the decision to eliminate their low-value currencies. Canada, for example, stopped minting its one cent coin in 2012. A 2018 economic analysis found that, as a result of this move, Canadian consumers paid an additional $3.27 million annually due to price rounding in supermarkets. However, it is recognized that eliminating pennies can also reduce operating costs, such as the time it takes to count and exchange these coins, which, as the old business adage goes, “time is money.” DOGE is not limited to just the penny. According to the 2024 Mint report, nickel is also in the spotlightsince it costs about 14 cents to produce and distribute each 5-cent coin. You may also be interested in:

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