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,” and, though exactly what the commission will do is still not exactly known, social media posts this week have hinted at what's to come.

Key Facts

Doge Calls For Applications

In a Thursday morning X post, the commission requested individuals to apply to join the group. “We need super high-IQ small-government revolutionaries willing to work 80+ hours per week on unglamorous cost-cutting,” the department said, calling for interested applicants to send their resumes directly to DOGE via direct message on X.

Where Could Doge Cuts Be Made?

Musk intends to pare down the Federal Trade Commission, Internal Revenue Service, Justice Department and Securities and Exchange Commission, reported the Wall Street Journal, citing two unnamed sources who have discussed the plans with Musk. The centibillionaire also endorsed Thursday a New York Post analysis story identifying several areas to potentially curb spending, ranging from big-ticket items like billions of dollars annually spent on maintaining unused government government to more dubious, smaller expenses like a $20,600 disbursement in 2022 toward a diversity, equity, inclusion, and accessibility exhibit in Ecuador.

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 are up more than 25% since the election. Musk’s reported targeting of the FTC, IRS, DoJ and SEC with his cost-cutting commission brings into question potential conflicts of interest, as those are the primary agencies which would regulate and probe Musk’s companies.

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 Tuesday night post to X, receiving more than 150,000 likes.

Tangent

Dogecoin, the meme cryptocurrency token famously touted by Musk, is up about 10% since Trump announced the DOGE commission. Part of a broader crypto rally, Dogecoin is up more than 100% 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 $57 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.

Further Reading

ForbesHere’s What Elon Musk May Do In A Trump Administration