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    What you need to know about Musk’s DOGE: From Tesla to Dogecoin

    Vaseline Posted on

    Topline

    The role of the world’s richest man, Elon Musk, in the incoming Trump administration became clearer this week when President-elect Donald Trump asked him to lead the Department of Government Efficiency, although it is still not entirely clear is what exactly the committee will do.

    Key facts

    Musk, along with fellow billionaire and former GOP presidential candidate Vivek Ramaswamy, will lead the “DOGE” agency, Trump announced Wednesday, with the name an apparent nod to the “Doge” dog meme that Musk often references .

    Despite its name, the billionaire-led commission is not billed as an official government agency, but rather as an advisory board that will “provide advice and guidance from outside the government,” Trump wrote, laying out the department’s main goals: “to dismantle Government bureaucracy, eliminate redundant regulations, curtail wasteful spending, and restructure federal agencies.”

    Trump said the commission will be completed by July 4, 2026, although Musk posted on his social media platform X on Wednesday that he expects it “to be done much sooner.”

    There are few details about exactly how DOGE will work, and it is unclear how much funding the commission itself would receive, but recent social media posts and campaign fodder provide some insight.

    Ramaswamy on Wednesday called for a “massive downsizing,” while Musk backed a roughly 75% reduction in the number of U.S. federal agencies, though major changes to funding would require congressional approval.

    In an appearance last week on the “Joe Rogan Experience” podcast, Musk said he hopes to “make the (government) agencies much smaller” and only “stick to what Congress has approved,” also calling for massive severance payments for government employees. influenced by a possible purge (“a few years of pay”) and predicting “America’s toast” if the government doesn’t cut spending.

    Surprising fact

    Musk said last month he could identify “at least $2 trillion” in cuts to the federal government’s $6.75 trillion budget. But Scott Bessent, the likely favorite to win the top economic role of Treasury secretary in Trump’s Cabinet, expressed skepticism about that proclamation, telling Forbes last week that he’s “not sure how they came up with that number.” , but “look at the way (Musk) runs his companies. He leads them quite well.”

    What does Doge mean for Tesla?

    As an external advisor to the federal government, Musk does not have to divest investments or resign his position with private companies. That means Musk can continue as normal as the CEO and largest individual shareholder of the $1 trillion electric car company Tesla, the $210 billion aerospace and communications company SpaceX and the $40 billion generative artificial intelligence startup xAI. “Although Musk will now take on a different role in addition to his numerous other roles at Tesla/SpaceX/xAI, we believe the major benefits for Musk and Tesla far outweigh any negatives,” Wedbush analyst Dan Ives wrote on Wednesday. a letter to customers. . Shares of Tesla rose about 1% in Wednesday trading and have risen more than 30% since the election.

    Chief critic

    “The Office of Government Efficiency is off to a good start with split leadership: two people doing one person’s job. Yes, this seems REALLY efficient,” Sen. Elizabeth Warren, D-Mass., wrote in a post to X on Wednesday night that received 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. As part of a broader crypto rally, Dogecoin has risen nearly 150% since election night, surpassing 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 that of publicly traded companies Delta Airlines, Ford or Kraft Heinz. “The funniest name is DOGE,” Musk joked to Rogan when talking about the new committee.

    Read more

    ForbesThis is what Elon Musk can do in a Trump administrationBy means of Derek Saul

    ForbesTrump says Elon Musk will lead the new ‘Department of Government Efficiency’ alongside Vivek RamaswamyBy means of Antonio Pequeno IV

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