President-elect Donald Trump announced in a Tuesday statement that Tesla CEO Elon Musk and Vivek Ramaswamy will lead the Department of Government Efficiency (DOGE) to "dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures and restructure Federal Agencies."
Musk, in the statement, said, "This will send shockwaves through the system."
Tesla rose early Wednesday.
Trump said the non-governmental advisory effort will end no later than July 4, 2026, the 250th anniversary of the Declaration of Independence.
The DOGE acronym is no doubt a nod to Musk's support of the Dogecoin cryptocurrency. Social media was quick to point out the irony of appointing co-heads to a government efficiency effort.
Musk and Ramaswamy were big tech supporters of Trump's campaign.
Trump had pledged to name Musk to find ways to slash spending, something the mega-billionaire openly relished. Musk has claimed he could eliminate $2 trillion from annual federal spending. Federal expenditures are currently $6.75 trillion and rising rapidly.
Trump's election has sent Tesla stock soaring, though it fell 6.15% on Tuesday. Investors are betting that Trump's election will benefit Tesla.
TSLA stock rose more than 2% early Wednesday.
But there are concerns about Musk's time being spread even thinner, though the DOGE effort won't be a formal government post.
There's the risk that Musk and Trump could clash as actual proposals to slash jobs, programs and benefits take shape, but the 2026 deadline suggests that's not an immediate concern.
As for the DOGE effort, if Musk and Ramaswamy deliver recommendations in July 2026, there's essentially no chance of legislation before the November 2026 midterms.
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