Elon Musk admits his $2TRN economy drive means 'market will tumble'

Elon Musk has admitted his pitch to slash at least $2trillion from federal spending if given the chance by Trump would lead to a 'tumble' in the markets. 

Musk, the CEO of Tesla and SpaceX who has put in his CV to become the director of a new 'Office of Government Efficiency' under a second Trump administration, said ordinary Americans would suffer some financial difficulties if his plan were enacted. 

He replied to an anonymous X account that believed that if Musk's major spending cuts were pushed through, there would be an 'initial severe overreaction in the economy' and that the 'market will tumble', but said 'there will be a rapid recovery to a healthier, sustainable economy.'

At 1:46am, Musk simply replied: 'Sounds about right.' 

It comes after he told a virtual townhall on X that the US had to reduce spending to live within our means,' adding that these efforts will 'involve some temporary hardship, but it will ensure long-term prosperity.' 

He later added that if we were given a government role, he would 'balance the budget immediately.'

'Obviously, a lot of people who are taking advantage of government are going to be upset about that. I'll probably need a lot of security, but it's got to be done. And if it's not done, we'll just go bankrupt,' he insisted. 

It comes after he told the roughly 20,000 attendees of Trump's rally at New York's Madison Square Gardens on Sunday: 'Your money is being wasted. We're going to get the government off your back and out of your pocket book.' 

Howard Lutnick - chairman and CEO of financial services company Cantor Fitzgerald, who also helms the Trump 2024 Transition Team - introduced the X owner to the stage at the conclusion of his speech.

Lutnick said Musk would soon become the head of a newly-created Department of Government Efficiency, an agency whose initials spell out DOGE, the cryptocurrency Musk once promoted.

Before Lutnick ceded the lectern to the world's richest man, he asked Musk: 'How much do you think we can rip out of this wasted $6.5 trillion Harris-Biden budget?' 

'I think we can do at least $2 trillion,' Musk replied, getting cheers from the audience.

The federal government spent $6.75 trillion in fiscal year 2024, but only took in $4.92 trillion in revenue, leaving a $1.83 trillion shortfall, according to the Treasury Department.

Musk's cuts would shrink the budget by nearly a third and would be more than this year's deficit spending.

During his speech, Musk also reiterated what he said about being 'dark MAGA' at the early October rally Trump did in Butler, Pennsylvania, where the Republican candidate was shot by a would-be assassin months earlier.

‘I’m dark, gothic MAGA!' Musk screamed into the microphone while donning a black MAGA hat.

Musk getting a prime-time spot at the latest Trump rally comes as he faces criticism and possible investigations over his $1 million daily giveaway to registered voters in swing states.

The random lottery began on October 19 and is being offered to those who signed his petition in support of free speech and gun rights.

The seven-figure prize was first won by three Pennsylvania Republican voters, all of whom proudly posed with their oversized show checks.

Musk, however, has paused the giveaway in Pennsylvania after warnings from the Justice Department.

The DOJ sent a letter notifying Musk's America PAC that its lottery is possibly in violation of federal law, according to multiple reports.

Plenty of speculation emerged that his 11th hour election sweepstakes would hit roadblocks, with many pointing out that it's illegal to give away money to sway voters or get them to register to vote.

DOJ warnings and calls for investigations by Democrats and Republicans alike haven't yet deterred Musk, who as recently as Friday handed out another $1 million to a Wisconsin teacher, Brian Bauer.