On Tuesday, U.S. President-elect Donald Trump appointed Elon Musk to a position focused on enhancing government efficiency. This decision further amplifies the influence of the world’s wealthiest individual, who contributed millions to support Trump’s election campaign.
Elon Musk and former Republican presidential candidate Vivek Ramaswamy are set to co-lead a newly established Department of Government Efficiency, a venture former President Trump suggested that will function beyond traditional government boundaries.
In a recent statement, Trump expressed confidence that Musk and Ramaswamy “will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies.”
Trump announced that the newly established department aims to fulfil longstanding Republican aspirations, stating it will “provide advice and guidance from outside of government.” This indicates that the roles of Musk and Ramaswamy will be informal, circumventing the need for Senate approval and permitting Musk to continue his leadership of Tesla, the electric car manufacturer, and his involvement with the social media platform X and the aerospace company SpaceX.
According to Trump, the newly established department aims to collaborate with the White House and the Office of Management & Budget to implement significant structural reforms and foster an unprecedented entrepreneurial approach to government.
The project is set to wrap up by July 4, 2026, coinciding with the 250th anniversary of the signing of the Declaration of Independence.
Elon Musk, recognized by Forbes as the wealthiest individual globally, appeared poised to gain from Donald Trump’s electoral success. The billionaire entrepreneur was anticipated to exert significant influence, potentially aiding his businesses and ensuring advantageous government policies.
Musk, who has numerous connections to Washington, contributed millions to support Trump’s presidential campaign and was seen making public appearances alongside him.
The potential inclusion of a government portfolio in Elon Musk’s responsibilities may enhance the market valuation of his enterprises, particularly in sectors like artificial intelligence and cryptocurrency, which he has shown a preference for.
Equities analyst Daniel Ives of Wedbush Securities stated in a research note that Musk is poised to play a significant role in the Trump White House, given his expanding influence across various federal agencies.
Ives stated, “The significant advantages for Musk and Tesla surpass any potential drawbacks, as this remains a remarkable strategic gamble by Musk in support of Trump.”
The decision faced backlash from Public Citizen, a progressive consumer rights organization known for contesting various policies implemented during Trump’s first term.
“Musk’s understanding of government efficiency and regulation is questionable, as his businesses have frequently violated the rules he will now have the authority to challenge in his new ‘czar’ role,” stated Lisa Gilbert, co-president of Public Citizen. “This represents the pinnacle of corporate corruption.”
Trump drew a parallel between the efficiency initiative and the Manhattan Project. This American endeavour led to the development of the atomic bomb and played a crucial role in concluding World War Two. Meanwhile, Musk assured stakeholders of his commitment to transparency.
Musk announced on X that the Department of Government Efficiency will ensure maximum transparency by posting all actions online, encouraging the public to contribute tips.
“A leaderboard will be introduced to highlight the most egregious expenditures of taxpayer money.” “This will be both profoundly tragic and highly entertaining,” Musk stated.
During a Trump rally held at Madison Square Garden in October, Musk asserted that the federal budget could be cut by “at least” $2 trillion. The Congressional Budget Office reports that discretionary spending, which encompasses defence expenditures, is projected to reach $1.9 trillion within a total of $6.75 trillion in federal outlays for the fiscal year 2024.
The Department of Government Efficiency is poised to address the issue of wasted funds, promising to implement solutions that will enhance fiscal responsibility. Musk declared at the rally, “We will remove the government from your affairs and lighten the burden on your finances.”
The newly established department, abbreviated as DOGE, draws a connection to the cryptocurrency dogecoin, which has garnered significant attention through the advocacy of Elon Musk.
In August, a federal lawsuit alleging that Musk and Tesla defrauded investors by promoting dogecoin and insider trading was dismissed, a decision that comes after claims of billions of dollars in losses.
Since Election Day, Dogecoin has experienced a remarkable increase, doubling in value as it aligns with a broader upswing in cryptocurrency markets. This surge is attributed mainly to anticipations of a more lenient regulatory environment under a potential Trump administration.
Tesla‘s shares experienced a decline on Wall Street before the announcement, yet they have risen approximately 30% since the election.
Ramaswamy, a pharmaceutical entrepreneur, sought the Republican presidential nomination, competing against Trump before ultimately endorsing the former president following his exit from the race.
In his 2021 bestseller “Woke, Inc.,” Ramaswamy criticized the choices made by certain major corporations to align their business strategies with social justice and climate change issues.
Ramaswamy announced that his recent appointment signifies his withdrawal from the ongoing consideration for the U.S. Senate seat in Ohio. This seat will be filled by Governor Mike DeWine, who was tasked with appointing a successor for JD Vance, and is set to assume the role of vice president under Trump following the inauguration on January 20.
