Topline
The world’s richest man Elon Musk’s role in the upcoming Trump administration became clearer this week as president-elect Donald Trump tapped him to lead the “Department Of Government Efficiency,” though exactly what the commission will do is still not exactly clear.
Elon Musk attends a House Republicans meeting Wednesday.
Key Facts
Musk, alongside fellow billionaire and former GOP presidential candidate Vivek Ramaswamy, will lead the “DOGE” bureau, Trump announced Wednesday, with the name an apparent nod to the “doge” dog meme often referenced by Musk.
Despite its name, the billionaire-led commission is not proposed as an official government agency, but rather an advisory board which will “provide advice and guidance from outside of Government,” wrote Trump, who set forth the department’s primary objectives are to “dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures and restructure Federal Agencies.”
Trump said the commission will wrap by July 4, 2026, though Musk posted Wednesday on his X social media platform he expects to be “done much faster.”
Details are scant on how exactly DOGE will operate, and it’s unclear how much funding the commission itself would receive, but recent social media posts and campaign trail fodder provide some insight.
Ramaswamy called Wednesday for a “massive downsizing,” while Musk backed a roughly 75% reduction in the amount of U.S. federal agencies,” though any widesweeping funding changes would need to get approval from Congress.
In an appearance last week on the “Joe Rogan Experience” podcast, Musk said he hopes to “curtail [government] agencies to be much smaller” and to only “stick to what Congress authorized,” also calling for massive severance packages for government employees impacted by a potential purge (“a couple years of pay”) and predicting “America’s toast” if the government doesn’t reduce spending.
Surprising Fact
Musk said last month he could identify “at least $2 trillion” in cuts from the federal government’s $6.75 trillion budget. But Scott Bessent, the odds-on favorite to land the top economic role of Treasury secretary in Trump’s cabinet, expressed skepticism about that proclamation, telling Forbes last week he’s “not sure how they’ve gotten to that number,” but “look at the way [Musk] runs his companies. He runs them pretty well.”
What Does Doge Mean For Tesla?
As an outside advisor to the federal government, Musk won’t need to divest any investments or step down from any positions at private companies. That means Musk can proceed as normal as the chief executive officer and largest individual shareholder of the $1 trillion electric vehicle firm Tesla, the $210 billion aerospace and communications firm SpaceX and the $40 billion generative artificial intelligence startup xAI. “While Musk will now have another role to balance along with his myriad of other roles at Tesla/SpaceX/xAI, we believe the major benefits for Musk and Tesla far outweigh any negatives,” wrote Wedbush analyst Dan Ives in a Wednesday note to clients. Shares of Tesla rose about 1% in Wednesday trading and are up more than 30% since the election.
Chief Critic
“The Office of Government Efficiency is off to a great start with split leadership: two people to do the work of one person. Yeah, this seems REALLY efficient,” Sen. Elizabeth Warren, D-Mass., wrote in a Wednesday night post to X, receiving more than 100,000 likes.
Tangent
Dogecoin, the meme cryptocurrency token famously touted by Musk, is up about 15% since Trump announced the DOGE commission. Part of a broader crypto rally, Dogecoin is up nearly 150% since election night, outstripping the 35% gain of bitcoin, by far the most valuable digital asset. Dogecoin is the sixth most valuable cryptocurrency in the world, with a market capitalization of $61 billion, more than those of public companies Delta Airlines, Ford or Kraft Heinz. “The funniest name is DOGE,” Musk quipped to Rogan when talking about the new commission.