Elon Musk, the richest man in the world, is no stranger to the media. However, recently he has gained attention for his involvement in politics.
After Musk’s graduation from the Wharton School, he went on to co-found what would later become PayPal. Following its sale to EBAY, he reinvested his buyout profit of roughly $180 million into other businesses: “$100 (million) of that went into SpaceX, $70 (million) into Tesla, and $10 (million) into SolarCity,” he said in a 2018 interview on PandoDaily. In October, 2022, Musk bought the social media platform formerly known as Twitter for $44 billion and renamed it X a year later. His investments have paid off, as his net worth is now $263 billion, according to Investopedia. He is a large stake holder in Tesla and X, alongside private assets in Space Exploration Technologies, The Boring Co., Neuralink, and xAI.
Musk’s immense wealth is expanding beyond business and over to politics. He has reportedly been able to contribute over $100 million into Trump’s re-election campaign and was referred to as the most influential member of his success. Recently, Musk has been seen spending a lot with Trump at the Mar-a-Lago Club, in Palm Beach Florida. The billionaire has been involved in Trump’s transition back into office, as he has been sitting in on meetings and interviews regarding the future administration and has even dubbed himself as the "first buddy" in a post on X.
Trump released a statement announcing plans to form the Department of Government Efficiency or DOGE, which would be led by Musk and entrepreneur Vivek Ramaswamy. According to Trump, it will not be a technical government agency but rather it will look to: “dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies.”
With this authority, Musk will likely have the opportunity to influence policy in ways that suit his financial interests. Given that he has businesses that are heavily regulated by government agencies, this position could be instrumental for his corporate growth. Musk has estimated that he will be able to cut government funding by $2 trillion. Trump expressed trust in Musk’s and Ramaswamy’s ability to execute the incentive by July 4th, 2026: "A smaller Government, with more efficiency and less bureaucracy, will be the perfect gift to America on the 250th Anniversary of The Declaration of Independence,” he said "I am confident they will succeed!"
Elon Musk’s entrepreneurial success translating to Washington D.C. may suggest that there is a shift in how billionaires play a direct role in shaping government.
Sources:
https://www.wsj.com/politics/elections/elon-musk-wins-big-with-trump-bet-3c61ad90?mod=article_inline
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