On the campaign trail for Trump, Elon Musk waxed eloquently about the need to cut government spending and regulations. To do so, Trump announced that he planned to appoint Musk and Vivek Ramaswamy to lead an outside task force called the Department of Government Efficiency or DOGE.
Before the election, Musk claimed he planned to cut $2 trillion from federal government spending. Last week Musk changed his tune and said he probably would be able to cut less than $1 trillion. Why? Because it’s much more difficult to cut government spending than you might imagine. More than two-thirds of the federal budget goes to defense, Social Security, Medicare, veterans benefits and interest payments on the nation’s $36 trillion debt—all areas which Trump has promised not to cut.
So where does the irony come in with Musk and cost-cutting? Let’s take a brief look at how much money Musk has received from government contracts and subsidies over the last 14 years.
Space X has secured contracts for approximately $20 billion for crew and cargo resupply missions to the International Space Station and Starship development for lunar missions.
Tesla has received several types of government support, including a $465 million low-interest loan from the Department of Energy. He also has received significant income from environmental regulatory credits. These credits resulted in a substantial part of Tesla’s revenue, contributing more than $517 million by 2015, and an additional $10 billion since 2015. And don’t forget the Federal $7,000 tax credit that each Tesla owner received simply for buying an electric vehicle at a time when Tesla had a near monopoly on the electric vehicle market.
Solar City, which Tesla acquired, has received direct grants, tax credits and other subsidies including a $497 million direct grant from the U.S. Treasury Department.
In short, a prime reason that Musk is the richest man in the world is because of the money he has received from the federal government.
In the past, Musk has also had several adversarial knock-down drag outs with government regulators over the safety of his Teslas and environmental issues over his rockets. In his new role, Musk will potentially have control over government regulators who are regulating his companies.
There is no question that Elon Musk is a brilliant entrepreneur. He has been declared an engineering and managerial genius. His IQ is estimated to be around 155, right up there with Albert Einstein and Stephen Hawking. His accomplishments to date are beyond impressive. But he also is driven to get to Mars as soon as possible and wants nothing to stand in his way—including regulators who care about safety and the environment—and competitors, such as Boeing and Jeff Bezos—his biggest competitors in the Space race. (Bezos and Musk both have rockets scheduled to launch this week.)
In his new position, Musk potentially will have the ability to get rid of some regulations and put the kibosh on some of his competition in the space race. Such conflicts used to be stifled at the outset. But in this brave new world, they seem to be alive and well and living in the USA. (In addition to exerting major influence on the U.S. and outer space, Musk is now endorsing the far-right candidate for Germany, has inserted himself into British politics encouraging the most conservative option, and has cozied up to Italy’s conservative prime minister Giorgia Meloni whom he has bonded with over their mutual affection for the Lord of the Rings trilogy.)
Jeff Bezos just announced a $40 million Amazon deal for a Melania Trump documentary. James Carville, who is well versed in the documentary market, claims that you can make an A-plus documentary for $2 million.
The concept of buying favor for personal gain, now front and center, is a distressing turn of events.
There is no question that there is government waste that can be pared down. But there’s also no question that regulations are needed to protect our environment and the safety of our citizens. There’s also no question that it is wrong to award government contracts to the entrepreneur with the deepest pockets—especially when the ultimate grifter, Donald Trump, is leading the charge.
It’s time for government watchdogs to do their jobs. It’s also time that we put limits on the amount of money these entrepreneurs can put forth to get the go-ahead on their pet projects and line the pockets of the Commander-in-Chief.
Maria Grant was principal-in-charge of the federal human capital practice of an international consulting firm. While on the Eastern Shore, she focuses on writing, reading, music, and nature.