Why is Elon Musk all over US politics?

If there’s one man who’s been everywhere in the news since Donald Trump won the election, it’s business tycoon Elon Musk, wearing a “Make America Great Again” (MAGA) hat on his head and the ecstatic smile of a man who just won his way into ultimate power.

Musk helped Trump win the White House by not only pumping the campaign with reportedly $130 million, but also dedicating his platform X (formerly Twitter) as a MAGA megaphone. He’s the richest man in the world, and with the upcoming Trump presidency, he’s poised to win even more.

Already, the United States president-elect announced that Musk and Vivek Ramaswamy will lead a new department called the Department of Government Efficiency (DOGE), an unusual appointment given that no high-profile billionaire like Musk has been so overtly involved in political decision-making. The agency is seen to have the power to recommend wide-ranging cuts at federal agencies and changes to federal rules.

The questions most political analysts and the media seem to be grappling with, is how and why Musk has emerged as the second main figure in US politics since the elections. For his progressive pariahs, the explanation is quite simple, Musk is there for what he does best: business.

Musk’s companies have had contracts with the federal government. SpaceX dictates Nasa’s rocket launch schedule, surpassing Boeing as a major contractor. The Department of Defense depends on him for satellites.

The root cause of his rise to become Trump’s biggest political ally is the fact that backing Joe Biden did not serve his business well. Though Musk voted for Biden since they shared many policy objectives, specifically investment in green energy, Musk’s takeover of Twitter in 2022 went through rounds of legal battles. Biden also snubbed Tesla and even pushed for a bill to benefit electric vehicles (EVs) that are unionized. Then in December 2023, the Federal Communications Commissions (FCC) rejected $886 million in subsidies to Musk’s Starlink, the satellite internet service that oversees SpaceX, just one of his many run-ins with the US federal government’s regulatory agencies.

But now, Musk has a way out of such regulatory headaches as he can influence who’s in charge of what in the government through DOGE, which was formed on that very premise of ending government bureaucracy. The fact that it’s not a government department but an “advisory group” allows Musk to dodge the federal code’s primary conflict of interest law, which bans government employees from participating in government matters in which they have financial stakes.

As “adviser,” Musk can influence Trump and already, he seems to have done that. Trump has nominated Brendan Carr—a Republican official who has been outspoken in his support of Musk’s businesses—to lead the FCC. Musk’s SpaceX already stands to gain billions from federal contracts in the coming years, and a new mission to Mars—which would be more easily approved under the Trump administration—would only make that federal spigot wider.

Tesla’s share price has also been up 75 percent since Trump’s win. According to Tesla’s SEC filings, Musk owns about 715 million shares so that in itself, when combined with the rise in share price, would amount to $50 billion.

His influence could extend to foreign policy as well. As a key player in Ukraine’s war against Russia, Musk has provided internet connectivity to Ukraine’s war effort through his Starlink satellites. But Musk has feuded with Volodymyr Zelenskyy after he suggested a controversial peace proposal where Russia retains control over Crimea, which it illegally annexed in 2014. He also suggested that Ukraine drop its bid to join Nato. While it’s still unclear how much influence Musk would have on Trump’s policies on Russia and Ukraine, his general involvement even in Trump’s call to Turkiye’s Erdogan, raises suspicions.

A report by The New York Times also revealed that the SpaceX CEO wanted Trump to hire employees from his rocket company as top government officials, including at the Department of Defense.

Meanwhile, Trump’s proposed tariffs on China, where Tesla has the biggest factory, are likely to benefit Musk more than hurt him. Such tariffs would bar cheaper EVs from China making it into the US, trimming competition to Tesla.

The night Donald Trump won the election, he said, “We have to protect our geniuses. We don’t have any of them.” And Elon Musk is a genius because he managed to get his way at the end of the day. The Daily Star/Asia News Network

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Ramisa Rob is in charge of geopolitical insights at The Daily Star.

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The Philippine Daily Inquirer is a member of the Asia News Network, an alliance of 22 media titles in the region.