Musk is known for making bold claims, from promising self-driving taxis to sending humans to Mars. However, many of his commitments have yet to come to fruition.

The Role of DOGE

Donald Trump announced that Elon Musk and Vivek Ramaswamy will lead a new agency tasked with “reducing bureaucracy, cutting unnecessary spending, and restructuring federal agencies.” Dubbed DOGE — after the cryptocurrency Musk has promoted — the agency is expected to change the way government operates.

DOGE, however, is not actually an official body, as it does not have the executive authority of Congress. Instead, it is an external committee that cannot make formal decisions. This means that Musk and Ramaswamy can propose spending cuts, but Congress has the power to make those changes.

As “chief of staff,” Musk and Ramaswamy have made some headline-grabbing statements, most notably Musk’s assertion that he could cut at least $2 trillion from the federal budget. But economists say that’s unlikely. The current federal budget is $6.1 trillion, of which only $1.7 trillion is “discretionary spending,” which requires congressional approval each year.

Can Elon Musk Cut $2 Trillion?

Former Treasury Secretary Larry Summers also said Musk would be lucky to find $200 billion to cut, while many other economists said the $2 trillion figure was unrealistic.

Musk is known for his bold claims, from promising self-driving taxis to sending humans to Mars. However, many of his pledges have yet to materialize. His proposal for a “Department of Government Efficiency” is among his more high-profile promises that have failed to materialize. A prominent Musk critic, Gordon L. Johnson II, called DOGE “a pointless committee created to satisfy a few billionaires.”

Musk also joked on social media that the “Government Efficiency Division” was simply a humorous product to sell merchandise, which led many to question whether Musk was serious about his role in government.

Elon Musk currently owns or is involved in a number of technology companies, with the success of Tesla playing a key role in maintaining his position as the world's richest man. Tesla's stock price has risen 31% since Election Day, largely on the belief that Musk's presence in the Trump administration will usher in a period of deregulation that will benefit companies like Tesla.

While Musk’s role in DOGE may be purely ceremonial, his impact on the market and investors is significant. This may be Musk’s strategy to maintain his net worth and position as the world’s richest person.