Will Musk's role in Trump's team make the richest man richer?

Will holding an important role in Donald Trump's administration make Elon Musk, already the world's wealthiest individual, make him more wealthy? 

Just taste this: The value of dogecoin, which Musk promotes, has more than doubled since the US election day, tracking a surge in cryptocurrency markets on expectations of a softer regulatory ride under a Trump administration. Shares in Tesla, of which he is the CEO, are up about 30% since the election.

Musk had pushed for a `Department of Government Efficiency', emphasisng the acronym for the agency, DOGE. Doge, a reference to a meme of an expressive Shiba Inu dog and the name of the cryptocurrency Dogecoin, which Musk promotes. The value of dogecoin has been rising since election day. Shares in Tesla too are shooting up, thus adding to the tremendous wealth Musk already holds.

Adding a government portfolio to Musk’s plate could benefit the market value of his companies and favoured businesses such as artificial intelligence and cryptocurrency, suggests The Guardian

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

Appointment criticised

But Musk’s appointment was criticised by Public Citizen, a progressive consumer rights NGO that challenged several of Trump’s first-term policies. “Musk not only knows nothing about government efficiency and regulation, but his own businesses have also regularly run afoul of the very rules he will be in a position to attack,” co-president Lisa Gilbert said in a statement.

Trump had made clear that Musk would likely not hold any kind of full-time position, given his other commitments.

“I don’t think I can get him full-time because he’s a little bit busy sending rockets up and all the things he does,” Trump said at a rally in Michigan in September. “He said the waste in this country is crazy. And we’re going to get Elon Musk to be our cost-cutter.”

Trump said the agency will be conducting a “complete financial and performance audit of the entire federal government, and making recommendations for drastic reforms”.

Trump said their work would conclude by 4 July 2026, adding that a smaller and more efficient government would be a “gift” to the country on the 250th anniversary of the signing of the Declaration of Independence.

Musk won't be part of government

Despite the name, the department will not be a government agency. Trump said in a statement that Musk and Ramaswamy will work from outside government to offer the White House “advice and guidance” and will partner with the Office of Management and Budget to “drive large scale structural reform, and create an entrepreneurial approach to government never seen before.” He added that the move would shock government systems.

Trump said the duo “will pave the way for my administration to dismantle government bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure federal agencies”.

Posting on X, the social media platform he owns, Musk pledged to document all actions of the department online for “maximum transparency”.

“Anytime the public thinks we are cutting something important or not cutting something wasteful, just let us know!” he said, while also promising to keep “a leaderboard for most insanely dumb spending of your tax dollars”.

It is not clear how the organization will operate. It could come under the Federal Advisory Committee Act, which dictates how external groups that advise the government must operate and be accountable to the public.