Following the conclusion of the U.S. elections, notable market movements have been sparked by the announcement of Elon Musk's new government role, alongside Vivek Ramaswamy. Appointed by President-elect Donald Trump, they will jointly lead the proposed "Department of Government Efficiency" (D.O.G.E). This news has stirred significant activity in various markets, including U.S. stocks, bonds, the dollar, and cryptocurrencies.
The new department aims to reduce excessive regulations and wasteful spending, promising unprecedented transparency by publishing all actions online. While these roles are advisory and not bound by federal ethics rules, both Musk and Ramaswamy's positions are expected to end by July 2026. Musk and Trump's collaboration appears to be a calculative move to reform government operations with a business-oriented approach.
Tesla (TSLA, Financial), in particular, has been at the forefront of investor interest following the Republican victory. The company's stock surged over 50% in a week, surpassing $1.1 trillion in market capitalization, making it the seventh-largest publicly traded company in the U.S. Hedge funds that shorted Tesla experienced significant losses, exceeding $5.2 billion.
Cryptocurrencies have also been thriving, with Bitcoin reaching a new high, crossing $90,000, and increasing more than 30% since the election. Collectively, the crypto market's value has surpassed $3 trillion. Dogecoin (DOGE), sharing its code name with the new department and frequently mentioned by Musk, has surged by nearly 100% over the past week, climbing to the sixth spot by market capitalization.
Nevertheless, investors should remain cautious of potential regulatory risks in the cryptocurrency sector. While Trump's stance on digital assets appears open, the variance in global regulatory perspectives could impact the market significantly.
