Elon Musk now has a post in the new Donald Trump administration. He will lead the newly created Department for Government Efficiency (DOGE), tasked with leading a “drastic” overhaul of US government administration, alongside businessman Vivek Ramaswamy. The richest man in the world doesn’t mess with “This will send shockwaves through the system and anyone involved in government waste, which is a lot of people!” Musk said in a press release following President-elect Donald Trump’s announcement.

Musk and Ramaswamy come to the mission prepared to cut thousands of government jobs and run government like a business. The press release compared their mission to the Manhattan Project, which developed the atomic bomb.

“I am pleased to announce that the Great Elon Musk, working alongside American patriot Vivek Ramaswamy, will lead the Department of Government Efficiency (DOGE),” Trump announced in the statement. “Together, these two great Americans will pave the way for my administration to dismantle the Government Bureaucracy, reduce excess regulation, reduce wasteful spending, and restructure federal agencies — essential to the Save America Movement.”

Despite its government title, the Department for Government Efficiency will serve as an advisory body, operating outside the formal government framework. “He will partner with the White House and the Office of Management and Budget to drive large-scale structural reforms and create an unprecedented entrepreneurial approach to government,” the press release continued. This setup allows Musk to sidestep the restrictions and potential conflicts of interest that come with holding public office.

“We are going to eliminate the massive waste and fraud that exists throughout our $6.5 trillion in annual government spending,” said Trump, who has faced budget deficits and rising federal debt during his first term. The billionaires’ mission comes with a deadline: July 4, 2026, marking the 250th anniversary of American independence. “A smaller government with more efficiency and less bureaucracy will be the perfect gift for America,” Trump said.

Elon Musk went so far as to say that $2 trillion in government spending could be cut, though he did not provide details on how that would be accomplished. Economists remain skeptical of such forecasts, saying such significant cuts would likely require cuts to core social programs, including Social Security.

“We need the Department for Government Efficiency,” Musk said during a recent rally: drawing attention to its acronym, DOGE — a playful nod to Dogecoin, the Musk-related cryptocurrency that has a dog as its mascot. “DOGE on a bronze plate. It’s going to be amazing,” he added, before admitting that his vision involves large-scale layoffs of civil servants. Musk, whose fortune is estimated at $319 billion, said the severance packages would be substantial: “Look, go do something else, is what we’re going to say. And you will be paid for two years,” he said.

This new role gives Musk significant leverage over regulators he has long criticized for impeding his companies’ progress. adze and SpaceX. DOGE’s mission is to reduce excessive regulation and limit the authority of government agencies. That could work to Musk’s advantage, easing restrictions on autonomous vehicle development — an area where Tesla has clashed with current regulators — and making it easier for SpaceX to launch rockets. Effectively, Musk could become both a regulator and a deregulator of regulators.

During Tesla’s recent earnings call with analysts, Musk made it clear that he would push for a streamlined federal approval process for autonomous vehicles, avoiding the complex patchwork of state regulations that currently exist. Following Trump’s election victory, Tesla’s stock has soared, pushing the company’s market cap above $1 trillion for the first time since 2022. Meanwhile, Musk’s ventures will continue to benefit from lucrative government contracts.

Vivek Ramaswamy, for his part, ran unsuccessfully in the Republican presidential primaries. From the start, he positioned himself as a millennial loyal to Trump and a staunch supporter of the former president’s policies. When he dropped out, he threw his full support behind Trump, aiming to secure a position in the Trump administration and bolster his credentials through outspoken advocacy. Ramaswamy has voiced his support for widespread public sector layoffs and deep budget cuts, even proposing cutting 75 percent of federal employees.

During his primary campaign, Ramaswamy suggested dismantling key agencies, including the Department of Education, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Nuclear Regulatory Commission. While dismantling federal agencies typically requires congressional approval, Trump could facilitate mass layoffs through an executive order to remove protections for federal workers — a move he tried during his first term but later backed down canceled by President Joe Biden.

Musk has emerged as one of the unexpected leaders of the presidential campaign. By May, it was already known that Trump intent on involving Musk in his administration should win. Trump later confirmed that he would task Musk with leading “drastic” government reform. Musk himself mentioned this connection during Tesla’s shareholder meeting in June, noting his frequent, sometimes inexplicable calls from Trump: “He calls me out of the blue for no reason. I don’t know why, but he does.”

The entrepreneur born in South Africa donated $75 million to America PACa political action committee he set up to support Trump’s campaign, his contributions eventually exceeding $120 million. Musk publicly supported Trump after the assassination attempt on the Republican in Butler, Pennsylvania. In the same city, Musk attended a Trump rally in the run-up to the election and echoed Trump’s conspiracy theories on immigration, free speech and gun rights.

Musk’s campaign efforts continued independently, particularly in Pennsylvania, where his rallies fused political themes with futuristic visions of space travel. One notable event involved a raffle promising millions of dollars in prizes for registered voters, which drew the attention of the Justice Department because of potential legal issues. Despite a lawsuit from the Philadelphia district attorney, Musk’s team admitted that the selection process was not entirely random as originally claimed.

He was so active in campaigning for Trump and spreading falsehoods that even President Biden referred to his alleged temporary illegal immigrant status as a student and working without a visa. Musk’s involvement with Trump’s campaign extended to major rallies, including New York’s Madison Square Garden, and he sat with Trump at his victory party.

After the election, Musk pledged to maintain his political organization, planning to register Republican voters in strategic districts to strengthen Trump’s position ahead of the midterm elections in November 2026. He also expressed interest in influencing the primaries by supporting candidates aligned with his vision within the Republican Party.

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