Elon Musk's Power Grab? Judge Rules on DOGE as Lawsuits Pile Up--What It Means for Investors

A federal judge just handed a temporary win to Elon Musk and his Department of Government Efficiency (DOGE), denying an emergency bid to block their access to federal data systems and workforce cuts. Judge Tanya Chutkan acknowledged concerns over Musk's sweeping authority but ruled that the states hadn't proven immediate harm. The lawsuit, filed by multiple attorneys general, argues that Musk's role bypasses the Constitution's Appointments Clause, which requires Senate confirmation. While this ruling keeps DOGE's mandate intact for now, legal battles are far from over, and investors should watch how this fight unfolds.

Under Musk's leadership, DOGE has aggressively slashed government jobs and dismantled key programs, sparking major legal and political scrutiny. Critics argue these rapid moves are destabilizing critical state-run initiatives and federal operations. While some courts have temporarily restricted DOGE's access to Treasury systems, others have allowed it to continue accessing internal databases. The mixed rulings highlight the ongoing uncertainty around Musk's government influence, and markets tied to federal contracts and regulatory oversight could see increased volatility in the near term.

Musk's deepening role in federal operations adds another layer of risk for investors, particularly those with stakes in companies reliant on government policy. Tesla ( NASDAQ:TSLA ) and SpaceX, both helmed by Musk, might face heightened regulatory scrutiny as the legal drama intensifies. Meanwhile, states pushing back against DOGE's influence could create further disruptions, amplifying unpredictability for industries linked to federal spending. With multiple lawsuits still in play, investors should brace for more twists in this unprecedented battle over Musk's government footprint.

This article first appeared on GuruFocus .