As it became clear that Donald Trump was heading for victory, Elon Musk posted a mocked-up picture of himself carrying a sink into the Oval Office – an echo of the day he took control of Twitter, says Richard Waters in the Financial Times. “It was easy to conclude that he was overplaying his hand.” Not a bit of it. “Musk is on the verge of the ultimate disruption – the US government itself.” Even Trump was prepared to take a back seat to his “super-genius” accomplice – at least for a while. “A star is born: Elon!” he said in a lengthy shout-out to his biggest donor while claiming victory. Trumpologists were quick to note that Musk and his four-year-old son, X Æ A-Xii, were the only outsiders included in the triumphant family photograph.
Musk, 53, who spent an estimated $200 million to help get Trump elected, might well conclude his bet has paid off handsomely. Already worth some $260 billion, his fortune shot up by £20 billion in a day as Tesla shares surged. “Pundits promptly wondered whether the world’s richest man was on a path to becoming its first trillionaire,” says The Economist.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Musk’s mischievous streak is already at play, says The Times. The new Department of Government Efficiency “shares an acronym” with his pet cryptocurrency, Doge. Its remit is to slash $2 trillion from government spending – a vast and some argue impossible task. But Musk is already flexing his influence in areas far beyond housekeeping, “even sitting in on the new president’s first phone calls with foreign leaders”. He has also already waded into US monetary policy, notes The New York Times – endorsing “a push to erode the Fed’s independence”.
Musk claims to have devised a formula for dissolving bureaucracy and sparking a new industrial revolution. But given the “legalistic weeds” he’ll face, “he may find it an easier task” to colonise Mars.
Are Elon Musk and Donald Trump headed for a fallout?
Musk could be “the breath of fresh air” the US government needs. But some worry about the conflicts of interest given Musk’s role in government, the boon he could grant to his own businesses and his cosy ties with autocratic regimes. “The merger of unrivalled power and wealth between two unashamed egomaniacs with boundless self-regard and scant respect for rules and regulations could go badly wrong” – if they don’t end up hating each other first. “The bromance has burned bright and fast.” Given Trump’s mercurial nature, and the sharp elbows of others in his court, “it could fizzle out just as quickly”.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
-
‘Sandwich generation’ carers losing £6,000 a year to support elderly relativesMiddle-aged adults are often caught between caring for children or grandchildren and their elderly parents, leaving them taking time out of the workforce and facing a huge hit to wages while they are still trying to save for retirement. We look at the true cost of caring.
-
Ground rents to be capped at £250 a year – what does it mean for you?The government has published draft legislation which would see ground rents capped at £250 per year for leaseholders. We examine what it means for homeowners and the housing market.
-
Michael Moritz: the richest Welshman to walk the EarthMichael Moritz started out as a journalist before catching the eye of a Silicon Valley titan. He finds Donald Trump to be “an absurd buffoon”
-
What turns a stock market crash into a financial crisis?Opinion Professor Linda Yueh's popular book on major stock market crashes misses key lessons, says Max King
-
ISA reforms will destroy the last relic of the Thatcher eraOpinion With the ISA under attack, the Labour government has now started to destroy the last relic of the Thatcher era, returning the economy to the dysfunctional 1970s
-
David Zaslav, Hollywood’s anti-hero dealmakerWarner Bros’ boss David Zaslav is embroiled in a fight over the future of the studio that he took control of in 2022. There are many plot twists yet to come
-
Nobel laureate Philippe Aghion reveals the key to GDP growthInterview According to Nobel laureate Philippe Aghion, competition is the key to innovation, productivity and growth – here's what this implies for Europe and Britain
-
'Investors should brace for Trump’s great inflation'Opinion Donald Trump's actions against Federal Reserve chair Jerome Powell will likely stoke rising prices. Investors should prepare for the worst, says Matthew Lynn
-
The state of Iran’s collapsing economy – and why people are protestingIran has long been mired in an economic crisis that is part of a wider systemic failure. Do the protests show a way out?
-
The rise and fall of Nicolás Maduro, Venezuela's ruthless dictatorNicolás Maduro is known for getting what he wants out of any situation. That might be a challenge now
