'From Zelenskyy call to DOGE department': Elon Musk’s new influence in Trump administration brings Silicon Valley to Washington

In the wake of Donald Trump’s election victory, Tesla and SpaceX CEO Elon Musk is emerging as a major force within the incoming administration, bringing a Silicon Valley sensibility to government reform. Having played a key role in Trump’s campaign, Musk has been tapped to lead the newly created Department of Government Efficiency, also known as the D.O.G.E. - a nod to his favourite cryptocurrency, Dogecoin. This new department aims to streamline federal operations, cut waste, and modernise government structures, with Musk promising to shake up the traditional bureaucratic system.

Musk’s influence extends beyond campaign support. He recently joined President-elect Trump in a conversation with Ukrainian President Volodymyr Zelenskyy, discussing the ongoing conflict there, signalling his involvement in high-level government matters even before officially stepping into his role. Musk has openly shared ambitious plans to cut $2 trillion from the federal budget, streamline government functions, and eliminate regulations that he argues stifle innovation.

“America’s A team is usually building companies in the private sector,” Musk posted on his social platform, X, on Thursday. “Once in a long time, reforming government is important enough that the A team allocates time to government. This is that time.”

Restructuring with a Trusted Inner Circle

Musk’s approach will focus on placing trusted allies and tech experts from his corporate network into key government roles. Steve Davis, president of Musk’s tunnelling startup The Boring Company, is expected to play a significant role, drawing from his experience executing layoffs and corporate restructuring. Known for his efficiency in high-stress environments, Davis was instrumental in reshaping Twitter (now X) after Musk’s controversial $44 billion takeover, overseeing drastic staff cuts and operational overhauls.

Another close associate, Omead Afshar, who has overseen major projects like Tesla’s Giga Texas factory, is likely to assist Musk in navigating government reforms. Afshar is known as a “firefighter” within Musk’s companies, handling challenging situations with a results-driven approach. 

This inner circle also includes finance expert Jared Birchall, head of Musk’s family office, who played a critical role in financing the Twitter deal and managing Musk’s business interests. Birchall’s involvement signals that Musk will be well-supported in his push to influence the direction of US government policy.

The Role of the D.O.G.E. Department

The newly established Department of Government Efficiency, cheekily abbreviated as D.O.G.E., symbolises Musk’s commitment to making government operations as lean and streamlined as possible. Named after the Shiba Inu-themed cryptocurrency Dogecoin, which Musk has famously endorsed, the D.O.G.E. department is set to tackle bureaucratic bloat and implement innovative, technology-driven solutions to federal processes. The name has not only caught the public’s attention but has also added an air of Musk’s irreverent, meme-inspired approach to governance.

Throughout Trump’s campaign, the mere mention of the D.O.G.E. department often triggered excitement within the crypto community, and Dogecoin itself saw price surges every time Musk referenced it on X or at campaign rallies. Since Trump’s win, Dogecoin has surged by over 30% as investors speculate on Musk’s potential influence over federal technology policies and the publicity boost from the D.O.G.E. initiative.

Silicon Valley’s Entry into Trump’s Administration

Musk’s venture into the political sphere brings with it key figures from Silicon Valley, including venture capitalists David Sacks and Jason Calacanis. Both were part of Musk’s Twitter “war room” during the acquisition and are known for their pro-Trump, anti-establishment views. Bill Ackman, CEO of hedge fund Pershing Square, has also been actively engaged with Musk, sharing ideas on trade, tax, and immigration reform, suggesting a convergence of tech and finance leaders in shaping policy.

Musk’s allies from the tech world are expected to be instrumental in his government role. Anduril co-founder Palmer Luckey, a defence technology innovator, recently hinted at joining the administration if asked, underscoring Musk’s efforts to integrate Silicon Valley’s innovation-driven approach into federal operations.

Challenges Ahead for Musk and Government Influence

Musk’s government ambitions will likely encounter resistance, particularly in regulatory matters. SpaceX is currently engaged in disputes with several federal agencies, including the Federal Aviation Administration and the National Labor Relations Board, over issues ranging from launch approvals to labour practices. Musk has also clashed with the Federal Communications Commission, which previously revoked an $886 million SpaceX broadband deal.

In light of his alignment with Trump, Musk’s criticisms of regulatory bodies may gain new weight, potentially influencing policy changes that benefit his companies. He has already proposed placing key SpaceX executives within the Department of Defense, aiming to strengthen ties between his commercial ventures and national security interests.

Despite his pro-innovation stance, Musk faces scrutiny over his ties to federal funding, particularly at Tesla, which benefits from substantial tax credits and regulatory incentives. As Tesla expands into AI, robotics, and autonomous vehicles, Musk may use his government role to push for regulatory frameworks that support these emerging technologies.

A New Era of Government Efficiency?

Musk’s arrival in Washington signals an unprecedented crossover of tech industry power into the federal government, as he aims to bring the same disruptive mindset that built his corporate empire to the U.S. government. His influence is expected to reshape not only policies around innovation and efficiency but also set the stage for a new approach to governance, marked by the Silicon Valley ethos of agility and relentless execution.

As Musk himself noted, the government “needs better and faster employees overseeing autonomy, rockets, and AI.” Whether he can achieve his ambitious vision remains to be seen, but Musk’s rise in the political realm will undoubtedly bring significant changes to how Washington operates.