Donald Trump picks Elon Musk to lead government efficiency department

By Muhammad JuniadPublished On 13 Nov 2024

Elon Musk and former Republican presidential candidate Vivek Ramaswamy will co-lead a newly created Department of Government Efficiency, an entity Trump indicated will operate outside the confines of government.

Donald Trump said in a statement 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 said the new department will realize long-held Republican dreams and “provide advice and guidance from outside of government,” signaling the Musk and Ramaswamy roles would be informal, without requiring Senate approval and allowing Musk to remain the head of electric car company Tesla (TSLA.O), opens new tab, social media platform X and rocket company SpaceX.

The new department would work with the White House and Office of Management & Budget to “drive large scale structural reform, and create an entrepreneurial approach” to government never seen before, Trump said.

The work would conclude by July 4, 2026 – the 250th anniversary of the signing of the Declaration of Independence.

Musk, ranked by Forbes as the richest person in the world, already stood to benefit from Trump’s victory, with the billionaire entrepreneur expected to wield extraordinary influence to help his companies and secure favorable government treatment.

With many links to Washington, opens new tab, Elon Musk gave millions of dollars to support Donald Trump’s presidential campaign and made public appearances with him. Trump had said he would offer Musk a role in his administration promoting government efficiency.

Adding a government portfolio to Musk’s plate could benefit the market value of his companies and favored businesses such as artificial intelligence and cryptocurrency.

“It’s clear that Musk will have a massive role in the Trump White House with his increasing reach clearly across many federal agencies,” equities analyst Daniel Ives of Wedbush Securities said in a research note.

“We believe the major benefits for Musk and Tesla far outweigh any negatives as this continues to be a ‘poker move for the ages’ by Musk betting on Trump,” Ives said.

Trump likened the efficiency effort to the Manhattan Project, the U.S. undertaking to build the atomic bomb that helped end World War Two, while Musk promised transparency.