Elon Musk, a significant backer of Donald Trump’s presidential campaign, has been actively working to align his business interests with a potential second Trump administration. Musk invested over $100 million in Trump’s campaign, utilized his social media platform, X (formerly Twitter), to promote Trump, and made public appearances supporting the candidate, particularly in key battleground states like Pennsylvania.
As the presidential transition approaches, Musk has reportedly asked Trump to hire employees from his companies, SpaceX and Tesla, to fill influential roles in the federal government, particularly at the Department of Defense.
This request highlights Musk’s desire to ensure that his closest allies are positioned within agencies critical to his business interests, creating a potential conflict of interest, given the significant government contracts Musk’s companies hold.
Musk’s vast business empire includes Tesla, SpaceX, and other ventures that rely heavily on federal contracts, such as satellite launches, space-based communications, and electric vehicle incentives.
Tesla, for instance, benefits from the U.S. government’s $7,500 electric vehicle tax credit and earns billions through carbon credits, while SpaceX has secured multi-billion dollar contracts from the government, including from the Pentagon and NASA.
The close relationship Musk is cultivating with Trump could lead to reduced scrutiny of his companies, especially with the Justice Department, which might take a more lenient approach under a Trump administration. This alignment could benefit Musk’s businesses by reducing regulatory hurdles, including investigations into Tesla’s self-driving technology and SpaceX’s government dealings.
Trump’s shifting stance on electric vehicles also underscores his growing support for Musk. Although Trump previously criticized government-backed electric vehicle initiatives, he reversed his position after Musk’s endorsement of his reelection bid, praising Musk as an exceptionally “smart” individual.
Elon Musk Aligns Business Interests with Trump’s 2024 Campaign, Seeking Key Government Roles for Allies
This endorsement signals a likely favorable environment for Tesla, especially with the potential for changes to federal tax credits or emission standards that could benefit Musk’s companies.
In contrast, Musk has had a contentious relationship with President Joe Biden, particularly after being excluded from a 2021 electric vehicle summit despite Tesla’s dominance in the industry. This friction highlights Musk’s preference for the Trump administration’s policies.
Musk’s relationship with the government is not limited to electric cars. SpaceX, which holds substantial contracts with the Pentagon, has become essential for U.S. defense and space programs, prompting concerns about over-reliance on Musk’s company.
Musk has reportedly sought to influence NASA’s priorities, pushing for more focus on Mars exploration instead of its current emphasis on returning to the moon, which could redirect federal space spending to benefit his company.
Additionally, Musk’s efforts to place his executives in government roles, such as recommending SpaceX’s General Terrence J. O’Shaughnessy for a position at the Department of Defense, show his desire to further embed his interests within key government agencies.
Musk’s influence in a second Trump term could mirror the role of tech mogul Peter Thiel in Trump’s first administration, who helped populate the transition team and government with allies.
As Musk continues to build relationships with key figures in Trump’s inner circle, such as Howard Lutnick, head of Trump’s transition team, and other political supporters, it is clear that Musk is positioning himself to gain substantial benefits from a second Trump presidency.
The full extent of these benefits, however, will likely become clearer as Trump’s transition into office unfolds. Regardless, Musk’s investment in supporting Trump appears to be a strategic move that is already paying off, ensuring that his business interests are well-positioned in the years ahead.
