Washington DC - Donald Trump on Tuesday said Tesla and SpaceX CEO Elon Musk will lead a so-called Department of Government Efficiency alongside American entrepreneur Vivek Ramaswamy.

"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 - Essential to the 'Save America' Movement," Trump said in a statement.

Last month, Trump revealed his plan to create a position for Musk called "Secretary of Cost Cutting," which would allow Musk to "cut costs without affecting anybody."

Soon after, during his speech at Madison Square Garden in New York City, the Tesla CEO told the crowd that his "Department of Government Efficiency" would eliminate the federal government's wasteful tax expenditures.

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"We're going to get the government off your back and out of your pocketbook," Musk said.

In January, Trump teased the idea of adding Vivek Ramaswamy to his presidential administration at a rally.

"It's an honor to have his endorsement," Trump told the New Hampshire crowd.

"He's gonna be working with us, and he'll be working with us for a long time," he added.