Elon Musk, the other big winner in Donald Trump's shadow

Photo: Julia Demaree Nikhinson Associated Press Elon Musk during Donald Trump's campaign rally at Madison Square Garden in New York City on October 27, 2024

Alex Pigman – Agence France-Presse in Washington

Posted at 7:23 p.m.

• United States

While Donald Trump has largely won the American presidential election, billionaire Elon Musk, who had bet everything on him, appears to be the other big winner of the election.

The richest man in the world has thrown himself headlong into the ex-president's campaign in recent weeks, accompanying him to rallies and even going on stage to defend him, notably in Pennsylvania.

He also invested more than $100 million in the campaign of the new president-elect, and did not hesitate to use his social network, X (formerly Twitter), as a sounding board for Donald Trump's messages, particularly on immigration.

His support committee even organized a lottery offering a million dollars daily to registered voters in key states who agreed to sign a conservative petition in favor of freedom of expression and the right to bear arms.

Elon Musk's risky bet immediately paid off, with the rise on Wednesday of the shares of his company Tesla, which earned him $15 billion in the morning, according to Forbes.

The head of the electric car manufacturer should also be rewarded with a position in the future government. The president-elect could charge him with profoundly reorganizing the federal administration, using the aggressive approach that is his in his affairs.

The proximity between the two men is widely staged on both sides. Mr. Musk posted a photo on X showing himself with Donald Trump at the election night party in Florida, when the latter paid tribute to him in his victory speech, calling him a “super genius.”

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Department of Government Effectiveness

It remains to be seen how the two colorful and often moody characters, who barely knew each other a few months ago, will manage to work together.

For some, their relationship is doomed to failure, due to their respective egos. Others, on the contrary, believe that Mr. Trump respects the fortune and success of the South African-born billionaire.

“The United States is a nation of builders. Soon you will be free to build,” Elon Musk promised on X, with a photoshopped image showing him carrying a sink to the White House, a nod to his arrival at the social network's offices after buying it in 2022.

He showed up at Twitter headquarters with a sink in his hands to symbolize his determination to radically transform the company. As soon as the acquisition was completed, he fired the management team, then thousands of employees.

Elon Musk is expected to head a new “Government Efficiency” department, whose primary goal will be to cut $2 trillion from the federal budget, currently at $7 trillion.

Possible conflicts of interest

He has said he wants to import the same “tough” approach to Washington as he does in his companies, while promising “humane and fair” treatment to federal employees who would be affected, including severance packages amounting to two years’ salary.

“We need to make significant cuts in government spending and we need to get people to work in more productive jobs in the private sector,” Musk justified, still on X, a few hours before Mr. Trump's victory.

His proximity to the next president, however, leaves the risk of potential conflicts for his companies hanging over him, particularly concerning the autonomous driving technology developed by Tesla.

Regulators are currently investigating this feature after several road accidents involving Teslas, despite his assurances that the technology is ready.

His appointment in a Trump administration could also have an impact on the activity of SpaceX and its relations with NASA, for which his company has become an essential partner.

In his victory speech, Donald Trump touted SpaceX’s technical achievements, including the spectacular catch in October of the first stage of its Starship megarocket during a test flight, which paved the way for the possible reuse of the heavy-lift launcher.

“It was going down, down, and you could see the fire burning, and I thought, ‘That must be Elon’s [rocket], only Elon can do that,’” the president-elect said.