Elon Musk's rising political clout amidst election controversy
The U.S. Department of Defense relies on him, he sets the schedule for NASA rocket launches, and in the past decade, his two companies have received over £12 billion from government contracts. American media reports that Elon Musk "has an extraordinary influence on the federal government" of the U.S.. By backing Donald Trump, Musk wants to expand his influence even further.
25 October 2024 19:03
“The current elections are the most important in our lifetime,” Elon Musk proclaimed from the podium at a Donald Trump rally in Butler, Pennsylvania. He added that "the other side" (meaning Democratic candidate Kamala Harris - ed.) wants to take away people's freedom of speech and the right to bear arms. He also encouraged Americans to vote, saying, "if they don't, these will be the last elections."
The political engagement of the world's richest man, with a fortune estimated by Forbes at nearly £221 billion, is growing daily. Musk not only uses his platform X to promote Trump by publishing - as claimed by the Center to Combat Online Hate - among other things, false or misleading information about the elections. At the end of July, Musk spread a manipulated video of Kamala Harris. The video was viewed millions of times.
The billionaire also reaches into his wallet. Musk announced that by Election Day, 5th November, in key swing states, he would give £810,000 to one registered voter who signs his political petition regarding "constitutional rights" and the right to bear firearms. It's one of the billionaire's ways to get as many people supporting Donald Trump to register for the elections and cast their votes.
The governor of Pennsylvania, a crucial swing state, Democrat Josh Shapiro, said on NBC that Musk's actions are "deeply concerning" and that prosecutors should investigate. Federal law prohibits offering money to voters to sway their votes.
Official data from the Federal Election Commission indicates that Musk donated £61 million to his main campaign committee, America PAC, although the latest reports by "The Washington Post" mention £97 million.
Billions from government contracts for Elon Musk
This is just a fraction of what Musk has earned and might earn from government contracts. "The New York Times" reported that in the last decade, SpaceX received £12.5 billion in contracts from government agencies, and his company Tesla - £280,000. Meanwhile, just in 2023, his companies were promised £2.4 billion via 100 contracts for 17 government agencies.
According to " The New York Times, " Musk will be a key player regardless of who wins the elections. However, the billionaire has backed Trump, who promised to make him a member of the government commission on efficiency. This commission will recommend budget cuts for federal agencies and propose regulatory changes.
"Essentially, it would give the richest man in the world and a major government contractor the power to regulate regulatory bodies that affect his companies, posing a potentially enormous conflict of interest," comments "NYT".
A shift regarding Trump
The South African-born billionaire didn’t always support Trump. In 2017, Musk resigned from two of the then-president's advisory boards as a protest against the withdrawal from the Paris climate agreement.
The rapprochement with Republicans occurred in 2018. "Trump's Federal Communications Commission allowed the fledgling Starlink company to launch its first batch of 4,425 Internet satellites, despite rival protests claiming that such an unprecedented number would clutter the sky. It was a bold decision: Starlink, an untested provider, was given the green light to nearly double the number of satellites orbiting the Earth," notes the "Washington Post".
Starlink, a product of Musk’s company SpaceX, "thrived during Trump's presidency." - He's a brilliant guy - Trump says about Musk. The Republican himself is open to space exploration, including in the context of national security. And Starlinks not only provide internet access, but also have vast defensive potential. That's why among SpaceX's clients is the Pentagon. In 2019, Musk praised Trump for creating the United States Space Force.
According to Chris Quilty from the research firm Quilty Space, state-of-the-art satellite systems have a nearly 15-minute delay in delivering images, which can be significant during armed conflicts. Therefore, as Quilty assessed in a conversation with the Washington Post, Starlink can secure federal contracts for years if it provides a system delivering information almost in real time.
"Starlink could gain billions of dollars in federal contracts and subsidies during Trump's presidency," writes "WP".
However, a debate is ongoing about whether Musk is a reliable partner. The billionaire admitted to blocking Ukraine's ability to expand the Starlink coverage area when Kyiv wanted to attack the Russian fleet near Crimea. Armed Services Committee Chair Jack Reed noted that previously, governments controlled satellites, and presidents decided what to do with them. Now, Musk decided, not wanting to escalate the conflict.
The Wall Street Journal reported that Musk has maintained regular contact with Vladimir Putin since 2022. According to the newspaper, the Kremlin allegedly threatened the SpaceX owner and asked him not to activate the Starlink network over Taiwan. Simultaneously, the businessman's increased contact with the Russian dictator "coincided with Musk changing his stance on supporting Ukraine and echoing Russian propaganda narratives." This includes the "peace plan" proposed by Moscow, which involved granting Crimea to Russia and the neutrality of Ukraine.
In early September, Gideon Rachman from the "Financial Times" stated that "Musk is a rogue geopolitical rocket missile. He speaks and acts like he is more powerful than governments, and sometimes he indeed is. However, he still cannot make the law." And this could partially be ensured by the promised position by Trump in the efficiency commission - especially regarding the development of Starlink. Kamala Harris has a completely different view of Musk. To her, he is one of the "arrogant billionaires who only care about themselves."
Discrimination and other legal matters
In August 2023, the Department of Justice filed a lawsuit against SpaceX, accusing Musk’s company of discriminating against asylum seekers and refugees in hiring employees. From 2018 to 2022, the company reportedly discouraged them from applying and refused to hire them, which violated immigration and citizenship laws. However, a district court in Texas, where SpaceX operates, did not resolve the matter, stating, "administrative judges in the Department of Justice hearing cases related to anti-immigrant biases were not properly appointed," reported Reuters.
The Guardian also wrote that eight SpaceX engineers sued the company and Musk for wrongful termination. They allegedly lost their jobs after sending a letter to the billionaire informing him of unethical practices in the company, such as sexist language.
American Business Insider recalled that "Musk is involved in a complex legal dispute" with Claire Boucher, the mother of his three children. Environmentalists in Texas claim that SpaceX is illegally dumping wastewater, so they are demanding a ban on the cooling system in the Starship rocket, which the company installed to prevent the launch pad from exploding.
Musk, Tesla, and Warner Bros. Discovery were also sued by the producers of the movie "Blade Runner 2049". They accused the billionaire of using film materials to promote the Tesla Cybercab.
Musk himself also goes to court. The service X he purchased sued a group of advertisers, claiming that "their massive boycott" deprived the company of billions of dollars in revenue.
"A powerful megaphone" of Elon Musk
Musk's influence is visible from Kyiv to Beijing. The fact that he controls SpaceX, the Starlink satellite internet system, and Tesla allows him to play a role in the war in Ukraine, the economic rivalry between the U.S. and China, and even, to some extent, in the war in the Gaza Strip. Additionally, owning the X service gives him "a powerful megaphone through which he expresses his views" - wrote Gideon Rachman from the "Financial Times".
Following the example of politicians worldwide, Musk also uses sports in his election campaign. The billionaire recently went to Pennsylvania and appeared at an NFL football game in Pittsburgh, where he waved the yellow towel known as the "Terrible Towel." Musk cheered with tens of thousands of fans of the local Steelers team, for whom yellow towels are a symbol.
Appearing in the stands is a chance to find new supporters, as there are a lot of fans. NBC, which broadcasts one game every Sunday during prime-time TV, attracted over 21 million viewers every week last year. Trump also appeared at one of the games but was shown for only a few seconds. The Republican lost in this aspect to singer Taylor Swift, who supports Kamala Harris and whom NBC shows an average of seven times per game.