Elon Musk’s role in delivering the US presidency for Donald Trump has given the world’s richest man a unique opportunity to reshape the federal government by placing his acolytes and allies inside the incoming administration.
The billionaire’s influence continues after the election, with him joining Trump during a call with Volodymyr Zelenskyy, president of Ukraine, on Wednesday to discuss the war there. Now Musk is preparing to wield new power in Washington having been promised a wide remit as head of a new Department of Government Efficiency.
He has spoken of slashing $2tn from the US budget and firing hundreds of thousands from a “vast bureaucracy”, while eliminating regulations he blames for stifling innovation.
Musk’s advisory role will be structured to ensure he keeps control of companies such as Tesla, X, SpaceX, xAI and Neuralink, said people familiar with the preparations. Instead, he aims to exert power by installing longtime deputies, engineering experts, financial backers and ideological partners at government agencies.
“America’s A team is usually building companies in the private sector,” Musk posted on his social media platform X on Thursday. “Once in a long time, reforming government is important enough that the A team allocates time to government. This is that time.”
The billionaire has leaned on a few trusted advisers to oversee his portfolio of companies, tasking them with executing brutal lay-offs, abrupt changes in strategy and meeting seemingly impossible deadlines.
For corporate restructuring, Musk has often relied on Steve Davis, president of the Musk-owned tunnelling start-up The Boring Company.
Parachuted into Twitter after the turbulent $44bn acquisition in 2022, Davis slept at the social media group’s San Francisco headquarters with his wife and newborn child while overseeing a “transition team” that ultimately slashed 80 per cent of jobs. “[Davis] is good at firing people,” said one person who knows both men.
Rebranded as X, the platform became the core tool for Musk and his allies to disseminate pro-Trump news and opinion. Davis was assigned to Musk’s America Pac lobbying group, where he offered detailed feedback on the scripts of Pennsylvania canvassers.
Another is Omead Afshar, a self-described “firefighter” for Musk. He helped oversee the construction of Tesla’s vast car factory, Giga Texas, and was involved in the redundancies at X and more recently at the carmaker, which dismissed 14,000 staff in April this year.
“He will find a way to do tough jobs, even if it doesn’t seem to make a lot of sense,” said one person who has worked with Afshar. “Elon loves him . . . he is an executioner.”
Buying Twitter not only gave Musk a megaphone, but solidified connections in finance and Silicon Valley and they are now jostling for his ear after amplifying the billionaire’s pro-Trump, anti-establishment message on X.
Venture capitalists David Sacks and Jason Calacanis — whose All-In podcast Musk often appears — were in the “war room” at the social media company in the days after the takeover. One large Republican donor described Sacks as a “policy wonk” who could play a role in the administration.
Bill Ackman, who runs US hedge fund Pershing Square, has become one of Musk’s most frequent correspondents on X, with the pair exchanging ideas for trade, tax and immigration policy.
Musk’s inner circle includes Jared Birchall, a financier who runs his family office, while holding top roles at Boring, xAI and Neuralink, his brain-chip company. A teetotal Mormon who previously worked for Goldman Sachs and Morgan Stanley, he was core to the Twitter deal — negotiating with the board, lobbying shareholders and raising finances. He has “as much authority as Elon will ever give to anybody”, said a person who has worked with them.
Musk’s business dealings with the government — and any conflicts of interest that result — will be a key focus. In Trump’s acceptance speech on Wednesday, the president-elect spoke glowingly about how SpaceX’s newest Starship rocket was caught by robotic arms on re-entry — “just like you hold your little baby at night” — and praised Musk for developing technology beyond the capabilities of Russia, China and Nasa.
As well as achieving a long-held ambition to launch a mission to Mars, Musk’s short-term aim is to add to his network of 6,000 low-orbit satellites that constitute Starlink. The technology could disrupt the global broadband industry with its small wireless terminals and impressive download speeds.
SpaceX is sparring with multiple agencies, seeking expedited approval for more rocket launches in California and Florida. Musk has called on the Federal Aviation Administration chief to resign, sued the National Labor Relations Board and attacked the California Coastal Commission for accusing the California Coastal Commission of targetting SpaceX for his personal political views. With Trump’s ear, his attacks will carry more weight.
Another target is the Federal Communications Commission, which in 2022 revoked an $886mn SpaceX deal to provide rural broadband after questioning its promises on speed, reliability and motivations. House Republicans have started a probe into the decision that hints it could be overturned once Trump is in power.
Musk has also asked Trump to consider appointing two SpaceX staff to the Department of Defense — former Air Force general Terrence J. O’Shaughnessy and Tim Hughes, a government affairs executive — according to the New York Times. Other people potentially being considered for government roles include Mat Dunn, head of government affairs at SpaceX, a person familiar with the planning said.
At Tesla, the foundation of Musk’s vast and interconnected conglomerate, the billionaire must face down Trump and the Republican Party’s scepticism about electric vehicles.
The company benefits from a $7,500 tax credit for each EV lease or purchase, as well as earning hundreds of millions of dollars every quarter from selling regulatory credits to other manufacturers that do not meet production-related emissions targets.
While Musk has repositioned Tesla to focus on artificial intelligence, humanoid robot assistants and driverless robotaxis, the $1tn business is also stymied by regulators.
Unlike Google’s Waymo, Tesla has failed to get approval for the highest classification of autonomous driving, a major roadblock to Musk’s promise to have robotaxis in California and Texas next year. It also faces multiple government probes into crashes caused by its driver assistance software.
Musk will seek to influence the patchwork of state-level guidelines on autonomous driving, said a person familiar with his thinking. “I would expect him to not just place random lieutenants, but set an agenda, and then get sensible people in place and work with them,” the person said.
They added good candidates include Peter Scheutzow, head of Tesla’s autopilot and AI software, and Suraj Nagaraj, who oversees safety testing for the company.
Musk’s Silicon Valley network is moving to leverage their links for a foothold in Trump’s government. Among Musk’s public boosters is Palantir co-founder Joe Lonsdale, who took a leading role in America Pac and was in regular communication with Musk and Trump throughout the campaign, said two people with knowledge of the matter.
Tech founders championed by Musk have already been rewarded. Palmer Luckey, co-founder of defence start-up Anduril, said during a Bloomberg TV interview on Thursday he was in touch with the Trump transition team, had been sounded out on candidates for defence secretary and would “answer the call” if asked to participate in the administration.
Earlier in the week, Musk replied to Luckey on X, saying: “Very important to open [the Department of Defence and US intelligence agencies] to entrepreneurial companies like yours.”
“The most important thing for you to understand about Elon is that he is a gunslinging risk taker, but does it with full understanding of the numbers and probabilities,” said one person close to him over the decision to enter politics.
“He’s a nightmare to work with . . . but it is the practical truth — the government needs better and faster employees overseeing autonomy, rockets and AI.”