Elon Musk to Address JPMorgan on Government Spending Cuts

Elon Musk, the world's wealthiest individual, is set to present his views on the merits of government spending reductions to a JPMorgan Chase audience, including CEO Jamie Dimon. Musk previously announced his appearance on the social media platform X on Sunday evening.

"I'm delivering a speech later this week to JPMorgan Chase and Jamie Dimon. This will, of course, be to a financial audience, essentially arguing that shorting bonds is a misguided strategy," Musk stated.

Musk added, "Bond markets currently undervalue the savings we are convinced of achieving."

Musk's attendance at a secretive JPMorgan event will include Dimon, as disclosed by a source knowledgeable about the event. JPMorgan is a major player in the US Treasury market.

Musk's JPMorgan address coincides with his efforts as head of the Trump administration's newly established Department of Government Efficiency (DOGE). He is swiftly restructuring or potentially closing several government agencies, including USAID. The legal consequences of these sweeping actions remain uncertain and may face constitutional challenges.

DOGE has obtained access to the Treasury Department's payment system as part of these initiatives. Over the weekend, Musk stated on X that DOGE is suspending certain Treasury payments to eliminate "corruption and waste."

"Reduced waste of taxpayer funds on frivolous expenses will necessitate less borrowing," Musk remarked in the same Sunday evening discussion.

Dimon has hinted at a thawing relationship with the world's richest person. "I wish him the best," Dimon told CNBC last month during the World Economic Forum in Davos, Switzerland.

"It will be challenging; the federal government is complex. If we can assist them, I would be delighted to do so," he added.

Relations between Musk and Dimon have not always been amicable. A longstanding feud began a decade ago when JPMorgan declined to underwrite leasing agreements for Musk's electric car company, Tesla (TSLA). Musk responded by threatening to withdraw Tesla as a client, as reported by the Wall Street Journal. Musk later terminated Tesla's relationship with JPMorgan.

In 2021, JPMorgan sued Tesla for $162.2 million, alleging a breach of a 2014 contract involving stock warrants sold to the bank. Tesla filed a countersuit. However, Musk and Dimon shared the stage at a JPMorgan conference last March. JPMorgan dismissed its lawsuit against Tesla in December. That same month, JPMorgan and Tesla formed a new commercial partnership.