Elon Musk asked Donald Trump to appoint SpaceX staff to top govt roles in defence: Report

Elon Musk, the billionaire CEO of Tesla and SpaceX, is reportedly seeking a close alliance with former President Donald Trump, who has been re-elected. Musk’s support has included financial backing and public endorsements, raising concerns among experts about potential conflicts of interest. This is particularly significant given Musk’s extensive federal contracts.

According to a report by The New York Times, Musk has suggested appointing some SpaceX employees to high-ranking roles in the federal government, including the Department of Defence. The Defence Department is one of SpaceX’s major clients, regularly contracting the company for rocket launches and satellite services. If this suggestion is realised, it could provide SpaceX with unprecedented access to government decision-making, further intensifying concerns over conflicts of interest.

Musk’s companies, SpaceX and Tesla, hold significant government contracts worth billions. SpaceX recently secured a $3 billion commitment for projects over five years, while Tesla benefits from federal tax credits for electric vehicles. The report claims that Musk has invested over $100 million in Trump’s campaign and used his social media platform, X, to bolster Trump’s profile. Experts suggest that Musk’s financial ties to the government could influence Trump’s decisions on regulations and policies affecting Musk’s businesses.

Trump has reportedly expressed admiration for Musk’s management style and is considering applying similar cost-cutting tactics to federal spending if re-elected. Musk has pledged to cut at least $2 trillion from the federal budget, which could weaken regulatory oversight on industries in which he is heavily invested. Experts warn that such a reduction in regulatory control could minimise oversight on Musk’s companies, reducing accountability.

Musk’s relationship with President Joe Biden has been tense, especially after Tesla was excluded from a 2021 electric vehicle summit, a decision Musk criticised. In contrast, Trump has shown open support for Musk’s ventures, including electric vehicles. Additionally, Musk’s allies in Congress and at the Federal Communications Commission (FCC) are challenging a decision to deny SpaceX an $856 million subsidy for rural broadband service, potentially favouring Musk’s plans for expanding SpaceX’s Starlink service.

The report suggests Musk may attempt to influence NASA’s mission priorities towards reaching Mars. Trump previously suggested that lunar missions are less exciting and has shown support for Mars exploration, aligning with Musk’s long-term vision for SpaceX. NASA has committed $93 billion to its Artemis moon mission through 2025, with SpaceX already receiving a $4.4 billion contract for lunar landings. A shift in priorities could enhance SpaceX’s business with NASA while redirecting taxpayer funds towards Musk’s Mars ambitions.

Observers note that Musk’s influence could resemble that of tech billionaire Peter Thiel during Trump’s first term, where Thiel placed his allies in key government positions. According to the report, Musk’s associates, including former Air Force general Terrence J. O’Shaughnessy and government affairs executive Tim Hughes, have reportedly been recommended for Defence Department roles, potentially giving Musk deeper leverage in defence and technology policymaking.