U.S. President-elect Donald Trump announced on Tuesday that he has appointed Elon Musk to help create a more efficient government. This decision grants even greater influence to the world’s richest man, who contributed millions to Trump’s campaign. Musk, along with former Republican presidential candidate Vivek Ramaswamy, will co-lead the newly established Department of Government Efficiency. Trump indicated that this department will operate outside traditional government frameworks. In a statement, Trump expressed confidence that Musk and Ramaswamy “will pave the way for my Administration to dismantle government bureaucracy, reduce excessive regulations, cut wasteful expenditures, and restructure federal agencies.”
He added that the new department aims to fulfill long-standing Republican goals and will provide guidance from outside the government. This means Musk and Ramaswamy’s roles will be informal and do not require Senate approval, allowing Musk to continue as the head of electric car company Tesla, social media platform X, and rocket company SpaceX. The new department will collaborate with the White House and the Office of Management and Budget to “drive large-scale structural reform and create an entrepreneurial approach” to government, as Trump said. Their work is expected to conclude by July 4, 2026, marking the 250th anniversary of the signing of the Declaration of Independence. Musk, who Forbes ranks as the world’s richest person, stands to gain significantly from Trump’s victory. His influence could help his companies and secure favorable treatment from the government.
Musk has close ties to Washington, having donated millions to support Trump’s presidential campaign and appearing publicly with him. Adding a government role could enhance the market value of Musk’s companies and favored industries such as artificial intelligence and cryptocurrency. Equities analyst Daniel Ives of Wedbush Securities noted, “It’s clear that Musk will have a massive role in the Trump White House, with his increasing reach across many federal agencies.” He added, “We believe the major benefits for Musk and Tesla far outweigh any negatives, making this a strategic move by Musk as he bets on Trump.”
This appointment was criticized by Public Citizen, a progressive consumer rights organization that challenged several of Trump’s policies during his first term. Lisa Gilbert, co-president of Public Citizen, stated, “Musk not only knows nothing about government efficiency and regulation, but his own businesses have regularly violated the very rules he will be in a position to challenge in his new ‘czar’ position. This is the ultimate corporate corruption.” Trump compared this efficiency initiative to the Manhattan Project—the U.S. program to build the atomic bomb that helped end World War II—while Musk promised transparency. “All actions of the Department of Government Efficiency will be posted online for maximum transparency,” Musk stated on X, inviting the public to provide tips. He added, “We will also have a leaderboard for the most absurd spending of your tax dollars. This will be both extremely tragic and extremely entertaining.”
Musk mentioned at a Trump rally in October that the federal budget could be reduced by “at least” $2 trillion. According to the Congressional Budget Office, discretionary spending—including defense—totals around $1.9 trillion out of $6.75 trillion in total federal outlays for fiscal 2024. “Your money is being wasted, and the Department of Government Efficiency is going to fix that.
We’re going to get the government off your back and out of your wallet,” Musk said at the rally. Interestingly, the acronym for the new department—DOGE—also refers to the name of the cryptocurrency dogecoin, which Musk promotes. In August, Musk and Tesla successfully dismissed a federal lawsuit accusing them of defrauding investors through hype around dogecoin and insider trading, resulting in billions of dollars in losses.
The value of dogecoin has more than doubled since Election Day, benefiting from expectations of a softer regulatory environment under a Trump administration. Tesla shares initially fell on Wall Street ahead of the announcement but have risen about 30% since the election.
Ramaswamy, the founder of a pharmaceutical company, initially ran for the Republican presidential nomination before supporting Trump after withdrawing from the race. He announced that this appointment means he is stepping back from consideration for the upcoming U.S. Senate seat in Ohio, where Governor Mike DeWine will appoint a replacement for JD Vance, who is set to become Trump’s vice president after the inauguration on January 20.