“I look forward to serving America”. Elon Musk did not hide his enthusiasm following Donald Trump’s victory. The entrepreneur fell short by publicly supporting the Republican and spending more than $100 million to support his campaign.
A boon for Elon Musk?
He will soon be named head of a new “Government Effectiveness Commission” with the power to recommend sweeping budget cuts to federal agencies and changes to federal rules. A strategic position that could also benefit its companies.
As recalled by Wall Street Journalthe revenues of the companies led by Elon Musk depend enormously on the billions of dollars disbursed by the American state. They are also dependent on regulations and strategic choices made by the administration. This is the case with SpaceX contracts or authorizations granted to autonomous cars issued by federal agencies for Tesla.
With this new role, the billionaire will probably be present at the discussion table where these decisions will be made. And our colleagues add: “Which gives him the possibility of adapting the policy to his own financial interests”.
Investors were not mistaken. The price of Tesla soared on the stock market this Wednesday and ended up 12%. But this new situation in Washington also arouses criticism.
How to manage potential conflicts of interest?
Democratic Representative Gerry Connolly, a member of the House Foreign Affairs Committee, criticizes:
This is a blatant attempt by the world’s richest man to buy influence by interfering in the election in unprecedented ways, some of which are potentially illegal.
On the Republican side, we are procrastinating. Some elected officials believe that protective measures can be put in place to anticipate potential conflicts of interest. As for Elon Musk and the various companies he manages, they did not wish to comment on this subject.
In the past, however, the leader has suggested that he intends to use this new role to advance certain issues. He notably explained last October: “The Department of Government Effectiveness is the only way to extend life beyond Earth”.
Likewise, and while Lina Khan, the president of the Federal Trade Commission, launched federal investigations against her social network X, Elon Musk recently indicated: “She will soon be fired”. Other burning issues are in the balance and also concern the FDA which deals with its company Neuralink.
We will therefore have to see, if this new role materializes, what prerogatives Elon Musk will really have and if real measures will be put in place to avoid potential abuses.
