Elon Musk holds enormous power over many critical industries. Is the government his next project?
How big is Musk’s empire?
It stretches from Earth’s orbit to tunnels underground and is even interlaced with human brains. Musk, the world’s richest man, with a net worth of nearly $250 billion, heads or controls six companies. The two largest are electric-vehicle giant Tesla, the world’s most valuable automaker, and SpaceX, which dominates the space-launch business and operates more than 7,000 satellites—about two-thirds of all active satellites in orbit—through its Starlink satellite internet constellation. There’s social media platform X (formerly Twitter), tunneling venture The Boring Co., brain-chip startup Neuralink, and artificial intelligence firm xAI. This private empire has been helped by a substantial infusion of public money: Tesla and SpaceX had received more than $15 billion in federal contracts as of last year. But some officials and experts now worry that the government has become dangerously reliant on Musk, who has in recent years promoted racist and antisemitic conspiracy theories, interfered with U.S. foreign policy, and become an antagonist of the Biden administration and an ally of Donald Trump, giving at least $75 million to a pro-Trump Super PAC. “The government needs to cut @elonmusk and his companies out of contracting,” Trump critic and former GOP Rep. Adam Kinzinger recently wrote...on Musk-owned X.
Why is the government so reliant on him?
It wants to maintain a global edge in critical technologies, and Musk’s companies have unrivaled capabilities. That became clear in June, when glitches in Boeing’s new Starliner spacecraft stranded two NASA astronauts at the International Space Station, turning an eight-day stay into eight months; NASA has tapped SpaceX to bring them home next year. With no meaningful competition, SpaceX is now central to the U.S. space program. NASA in 2021 awarded SpaceX a $2.9 billion contract for its reusable Starship rocket. That same year, the company entered into a $1.8 billion classified contract to build a network of spy satellites for a U.S. intelligence agency, sources told Reuters. “The issue for the government is, can they get a better service somewhere else?” said James Andrew Lewis, an analyst at the Center for Strategic and International Studies. “If the answer is no, you have to hold your nose and stick with [Musk].” But officials say that as Musk’s power has grown, so has his hostility to any efforts to contain him.
How has Musk pushed back?
Faced with at least 20 recent investigations and reviews of his companies by federal regulators, Musk has tried to browbeat and sue officials into backing down. Officials with the National Highway Traffic Safety Administration, which last week launched an investigation into Tesla’s Full Self-Driving (FSD) software over a string of deadly crashes, have reported that Musk screamed at them when they opened probes into his automaker. After SpaceX was accused by the National Labor Relations Board of improperly firing nine employees in 2022, the company filed lawsuits aimed at declaring the NLRB’s action—and the board itself—unconstitutional. “He considers himself to be a master of the universe,” said former Occupational Safety and Health Administration official Jordan Barab, “and these rules just don’t apply.” X has proved to be a useful weapon in Musk’s many tussles.
How does he use X?
Not as a moneymaker: Since he bought the platform in 2022 for $44 billion and gutted its content moderation system, it has lost nearly 80 percent of its value. But X does give Musk a megaphone to deploy against his perceived foes. He has used the platform to attack President Biden (a “grim puppet” for the Democratic Party) and Vice President Kamala Harris (“literally a communist”), and to amplify far-right conspiracy theories in the U.S. (that Democrats are “importing” undocumented immigrants to vote in the coming election) and also abroad. In August, anti-immigrant riots erupted in Britain after three young girls were stabbed to death; the riots were fueled in part by viral false claims on X that the murderer—a 17-year-old British-born Christian—was a foreign-born Muslim. Musk appeared unbothered by the spread of misinformation, posting, “Civil war is inevitable” and accusing British Prime Minister Keir Starmer of failing to protect “all communities.”
How else does his reach extend abroad?
Musk has emerged as a key player in the Ukraine war. Pentagon officials were forced to plead with the mogul in 2022 after some Ukrainian troops lost access to Starlink, their main battlefield communication tool, while fighting Russian forces. Musk had previously demanded that the U.S. pay for Ukraine’s Starlink access—a deal was later reached—and had endorsed a pro-Kremlin peace plan after chatting with Russian President Vladimir Putin. Musk’s ties to China have also raised alarms. The country is Tesla’s largest market after the U.S., accounting for 33 percent of all sales. Musk last year repeated Beijing’s official line that the independent island nation of Taiwan is an “integral part” of China. Taiwan’s foreign minister replied on X that “Taiwan is not part of [China] & certainly not for sale!”
What are Musk’s future plans?
He recently unveiled a prototype for a self-driving “Cybercab,” which he claims will launch in 2026, and aims to put humans on Mars by 2030. Trump has said that if he wins the White House on Nov. 5, he will appoint Musk head of a proposed “government efficiency commission.” Musk could then target the very agencies that regulate his businesses. He has signaled wanting to go after “irrational regulation” at the FAA and the Environmental Protection Agency first, but has not said whether his companies’ subsidies will also be under consideration. “I look forward to serving America,” Musk posted on X. “No pay, no title, no recognition is needed.”
Musk’s hard turn right
Long before he began sharing far-right lies on X about Haitian immigrants eating pets and “white genocide,” Musk considered himself a centrist. “I’m socially very liberal, and then economically right of center,” he said in a September 2020 interview. But by then, his metamorphosis was already underway. In April 2020, he called stay-at-home orders issued as a result of the pandemic “fascist” and shared content downplaying the risks of Covid. The same year, his then 16-year-old transgender daughter asked Musk to sign off on a medical transition from male to female. Musk did, but later claimed he’d been deceived. “My son is dead,” he said. “I vowed to destroy the woke mind virus after that.” In 2022, he declared that “unprovoked attacks by leading Democrats” had pushed him to vote Republican. He publicly endorsed Trump in July and stood beside him at a rally in Butler, Pa. “I’m not just MAGA,” Musk proclaimed. “I’m dark MAGA.”