Musk, owner of X, the microblogging platform previously known as Twitter, was an avid supporter of Trump during the electioneering leading up to the November 5 presidential election.
The former president defeated Vice President Kamala Harris after securing more than 270 of the electoral college votes required to win the poll.
A statement on Tuesday said Musk would run DOGE alongside Vivek Ramaswamy, a politician and entrepreneur.
It said the duo “will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies Essential to the ‘Save America’ Movement’.
“I look forward to Elon and Vivek making changes to the Federal Bureaucracy with an eye on efficiency and, at the same time, making life better for all Americans,” the statement quoted the president-elect as saying.
“Importantly, we will drive out the massive waste and fraud which exists throughout our annual $6.5 Trillion Dollars of Government Spending”.
Trump will take office for a second and final term next January.
