Is He Running The U.S. Government Or Just His Businesses?
Elon Musk has never been one to shy away from power. But his latest move—simultaneously running the Department of Government Efficiency (DOGE) while maintaining control over Tesla, SpaceX, and other ventures—has sparked serious ethical and legal concerns. Critics argue that Musk is blurring the line between public service and personal profit, wielding government influence to benefit his private empire.
Conflicts Of Interest Are Stacking Up
Musk’s appointment to head DOGE, an agency tasked with reducing government waste and increasing efficiency, was unconventional from the start. The billionaire entrepreneur has long advocated for slashing bureaucratic red tape, and his ties to the Trump administration made him a natural pick for a role focused on privatization. But his continued leadership of Tesla and SpaceX—both of which receive substantial government contracts—raises red flags.
SpaceX has secured billions in federal contracts, including its exclusive deal with NASA and growing partnerships with the U.S. military. Tesla, meanwhile, benefits from government subsidies aimed at promoting clean energy and electric vehicle adoption. Critics argue that Musk is now in a position to steer federal policy in ways that benefit his businesses, creating a clear conflict of interest.
Legal Experts Sound The Alarm
Ethics watchdogs and legal scholars warn that Musk’s dual role could violate conflict-of-interest laws. Federal regulations prohibit public officials from making decisions that directly impact their financial interests. While Musk claims he has recused himself from discussions related to Tesla and SpaceX, skeptics aren’t convinced.
“There is simply no precedent for a cabinet-level official maintaining direct control over major corporations that have extensive dealings with the federal government,” said Richard Painter, former White House ethics lawyer. “Even if Musk formally steps back from certain decisions, the perception of self-dealing is impossible to ignore.”
Insiders suggest that Musk has already influenced key policy decisions. DOGE’s proposed streamlining of federal procurement processes would make it easier for private companies to secure government contracts—something that would benefit SpaceX. Meanwhile, Tesla has been lobbying for expanded electric vehicle tax credits, a policy shift that Musk’s agency could indirectly support through budgetary recommendations.
What This Means For Markets
Wall Street has taken notice of Musk’s growing political clout. Tesla shares surged 4.2% last week amid speculation that federal incentives for EVs could be expanded. SpaceX, still privately held, is reportedly exploring new investment rounds at a valuation exceeding $200 billion, with some investors citing Musk’s government position as a potential advantage in securing military and aerospace contracts.
But the backlash is growing. The Senate Oversight Committee has launched an inquiry into potential ethical violations, and several lawmakers have called for Musk to resign from one of his roles. If pressure mounts, investors could face heightened regulatory scrutiny of Tesla and SpaceX, potentially impacting their long-term profitability.
For now, Musk remains defiant. In a recent interview, he dismissed concerns about conflicts of interest as “political theater,” arguing that his goal is to make government run more efficiently, not to enrich himself. But with watchdog groups circling and political opposition mounting, the billionaire’s ability to hold onto both his government post and his corporate empire may soon be tested.
One thing is certain: Musk isn’t just shaping the future of technology—he’s shaping the future of government itself. And the consequences of his unprecedented influence are only beginning to unfold.
