How Did Elon Musk Become So Powerful In The Trump Administration?
Feb 12, 2025
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Eric Lipton, an investigative reporter for the New York Times, and Theodore Schleifer, a journalist covering tech and politics, discuss Elon Musk's powerful influence during the Trump administration. They highlight how Musk's companies thrive amidst federal cuts and detail his shift towards conservative views. The duo explores the complex relationship between Musk and government dynamics, revealing concerns over conflicts of interest, accountability, and the growing trend of tech billionaires aligning with right-leaning ideologies.
Elon Musk's companies have benefitted from substantial federal contracts amidst federal job cuts, raising serious concerns about conflicts of interest.
Musk's political shift to far-right views and his ties with the Trump administration illustrate a significant realignment of tech billionaires in conservative politics.
Deep dives
Elon Musk's Conflicts of Interest
Elon Musk's extensive relationships with federal agencies raise significant concerns about conflicts of interest, particularly as he oversees drastic job cuts and cost reductions in these agencies. His companies, such as Tesla and SpaceX, have received approximately $3.8 billion in federal contracts in 2024 alone, with over $13 billion granted in the past five years. Numerous investigations are ongoing across more than 11 federal agencies regarding potential legal violations, yet there appears to be little to no official scrutiny from the Trump administration or Congress, especially after the dismissal of key ethics officials. This unique situation highlights the unprecedented breadth of Musk's influence over government operations in American history.
Investigative Obstacles and Lack of Scrutiny
The investigative landscape surrounding Musk's dealings is characterized by a notable absence of formal oversight, particularly since many government watchdogs have been displaced or rendered ineffective by Trump’s administration. With 17 inspectors general dismissed and controlling authority concentrated among loyalists, there is a significant gap in accountability regarding Musk’s interactions with federal agencies. Journalists and reporters are among the few still probing into these matters, yet they lack subpoena power, which limits their ability to investigate formally. The potential for abuse in this power vacuum is substantial, as it allows Musk and his companies to operate with minimal oversight amidst ongoing investigations.
Musk's Widening Political Influence
Over the past few years, Musk has undergone a political metamorphosis, shifting from a center-left stance to adopting far-right views, influenced by his personal experiences and social circle in Texas. In the wake of moving from California to Texas amidst COVID-related tensions, Musk’s political alignment has dramatically accelerated, particularly provoked by issues surrounding his trans child and what he describes as a growing 'woke mind virus.' His increasing involvement in the Trump administration and support for far-right ideologies signify a broader trend among Silicon Valley leaders who are now leveraging their wealth and influence in conservative politics. Consequently, this realignment underscores significant changes in how tech billionaires engage with government while reshaping the political landscape.
Regulatory Challenges Faced by Musk's Companies
Musk’s companies, particularly Tesla and SpaceX, are encountering increasing regulatory scrutiny due to safety violations and financial practices. The FAA has fined SpaceX for a lack of proper authorization during a significant satellite launch, while the Securities and Exchange Commission (SEC) investigates Musk for alleged non-disclosures regarding Twitter shares, resulting in financial advantages. These regulatory bodies have become battlegrounds as Musk publicly challenges their authority, claiming they hinder his ambitions. This ongoing conflict highlights the tension between Musk’s aspirations and the necessary oversight intended to protect public interests, raising questions about the balance of power between innovators and regulators.
New York Times journalist Eric Lipton explains how Musk's companies are benefiting as he cuts federal jobs and agencies, and reporter Teddy Schleifer explains how Musk's political views turned right, and why he thinks the billionaire's relationship with Trump might actually last.