Prime Minister Christopher Luxon says Elon Musk should focus on outcomes and value for money as the Tesla founder takes charge of a US department focused on Government efficiency.

US President-elect Donald Trump announced on Wednesday that Musk, the billionaire head of Tesla, SpaceX, X and other businesses, with entrepreneur and former presidential candidate Vivek Ramaswamy would lead the Department of Government Efficiency (DOGE).

“Together, these two wonderful Americans will pave the way for my administration to dismantle Government bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure federal agencies,” Trump said.

Musk said it would “send shockwaves through the system, and anyone involved in Government waste, which is a lot of people”.

The Trump statement said the department may be the “Manhattan Project” of “our time”. The Manhattan Project was the scientific research development project that led to the production of the first nuclear weapons.

Tesla and SpaceX chief executive has been named by US President-elect Donald Trump to lead a department charged with battling Government inefficiency. Photo / AP

Luxon’s coalition Government has also wanted to cut down on regulation and find efficiencies across Government departments to cut down on spending.

Asked by the Herald what tips he would send Musk, Luxon said: “I just say stay focused on outcomes, make sure you are getting good value for money and that every dollar is counting to improving the daily lives of your citizenry.”

Musk has previously expressed interest in Luxon’s governance.

Last October, Musk congratulated him on National’s election victory. In September, Musk replied on X to a video Luxon shared of him in Malaysia. He said, “I like the new NZ PM”, who, he said, had “good energy and talks directly to the public”.

• Luxon talks to Trump: 'Obvious' respect in first phone call
• Trump names Elon Musk to head US 'government efficiency' department

Musk became a key supporter of Trump ahead of the former President’s re-election last week. He’s previously been vocal about the need to find Government effiencies and proposed giving the agency the Doge acronym, in what appears to be a reference to the Japanese Shiba Inu dog meme and Dogecoin cryptocurrency.

Trump said the Doge would provide advice and guidance to his administration to drive large-scale structural reform and “create an entrepreneurial approach to Government never seen before”. He said the department’s work will conclude by July 4, 2026 – the 250th anniversary of the Declaration of Independence.

Luxon had his first conversation with Trump on Tuesday, which the New Zealand Prime Minister called “very positive”. He said Trump had an “obvious” respect for New Zealand.

Prime minister Christopher Luxon has had a phone call with Donald Trump this morning. He’s talking to Newstalk ZB's Mike Hosking Breakfast after phone call. photo:NZME composite 2 November 2024

“He called me and we congratulated him on his election victory. We talked a little ... he’s got a lot of attachment to New Zealand, it’s a place he speaks very highly of.

“He was aware of our new Government and myself ... he spoke very warmly about New Zealand. We both talked about the long relationship the two countries have together as two important democracies.”

The conversation touched on the economic challenges in their respective countries and global conflicts, especially Ukraine and in the Middle East.

“It was really just a relational chance to say hello. We committed we would catch up in person at some future forum.”

He told the Herald that Musk was not part of Tuesday’s conversation.

Jamie Ensor is a political reporter in the NZ Herald press gallery team based at Parliament. He was previously a TV reporter and digital producer in the Newshub press gallery office.