Elon Musk began laying groundwork for influence in a second Trump administration before Tuesday’s election was even decided, The New York Times reported Wednesday. The tech billionaire requested high-level Defense Department positions for SpaceX employees, including retired Air Force General Terrence J. O’Shaughnessy and government affairs executive Tim Hughes, according to people briefed on the communications.
The timing aligns with a complex web of government entanglements. Musk’s companies face approximately 20 federal investigations while managing billions in government contracts. SpaceX secured $11 billion in federal contracts over five years, including $3 billion last year alone — a level of dependence that has raised concerns at the Pentagon, the Times found.
The relationship already shows signs of reciprocity. After Musk’s July endorsement and more than $100 million in campaign support, Trump reversed his position on electric vehicles. “I’m for electric cars,” Trump announced in August, explicitly citing Musk’s endorsement. This shift could significantly impact Tesla, which the Times notes earned $1.79 billion from carbon credits last year and benefits from $7,500 federal tax credits on vehicle purchases.
Government oversight experts expressed concern about the developing relationship. “Having a good friend in the White House could be a very good thing for Tesla and SpaceX,” said Scott Amey of the Project on Government Oversight. “You have to worry about decisions that are not best for taxpayers when you have those kinds of cozy relationships.”
Trump has promised Musk leadership of a government efficiency commission, where the entrepreneur proposes cutting $2 trillion from the federal budget. “All of the annoying enforcement stuff goes away,” Stephen Myrow of Beacon Policy Advisors told the Times, explaining the potential impact on oversight.
Additional battles loom. House Republicans are challenging an $856 million FCC rural internet subsidy denied for SpaceX. At NASA, where SpaceX holds a $4.4 billion moon mission contract, Musk could advocate for shifting focus to Mars exploration — aligning with Trump’s previous statements questioning lunar programs.
The investment however already appears to be paying off: Musk’s wealth surged $20 billion as Tesla stock rose after Trump’s victory, bringing his net worth to $285 billion, according to Forbes.
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