The Technoking’s Rise: Elon Musk and his Game of Political Chess

Back in August, I critiqued the notion that Elon Musk might assume a position in Donald Trump’s cabinet. At the time, I posited that such an idea was preposterous for two primary reasons: first, the unavoidable conflicts of interest stemming from Musk’s extensive business empire; and second, the potential backlash from Tesla shareholders, who understandably would be reluctant to see their CEO distracted from steering the electric vehicle powerhouse.

It appears that I underestimated the circumstance. Yes, the conflicts of interest still persist, for there is scarcely a facet of government that does not pertain to Musk’s myriad business ventures—spanning electric vehicles, robotics, artificial intelligence, space exploration, social media, and beyond. However, I completely missed the fervor with which Musk would latch onto Trump’s ambitions and assert his influence—in an unprecedented manner—over the tech and political landscapes of America.

Special Government Employee—But Will It Matter?

The administration has technically classified Musk as a “special government employee,” which should subject him to federal conflict of interest statutes. Yet, enforcement falls under the jurisdiction of the Justice Department, and whether we will actually see them act remains to be seen. Tesla shareholders, you can breathe a sigh of relief—nothing may actually come of this legal overlay.

During the heated summer months leading into the presidential elections, the notion of Trump and Musk in the White House conjured fears for some Tesla investors. Many viewed it as a looming “disaster scenario,” finding solace only in Musk focusing his attention squarely on Tesla—a company channeling immense resources and rhetoric toward a driverless utopia. Post-Trump’s decisive victory, however, the landscape of corporate investment has shifted. Investors seem ready to embrace the whirlwind of Musk’s political connections, betting that his might in the White House could clear away regulatory hurdles that often bog down traditional automakers.

Musk’s Role: An Opportunity for Growth

As noted by Dan Ives, managing director of Wedbush Securities, the absence of a formal cabinet role does not detract from the advantages of having Musk’s influence in a Trump administration. The potential downsides from any political backlash are eclipsed by the considerable upside: namely, an acceleration in the United States’ autonomous driving agenda, despite Musk’s historical patterns of overpromising and underdelivering.

But let’s not sugarcoat matters—Musk’s rise is not merely about innovation or altruism; it’s an astute business maneuver. By establishing himself as a central figure in U.S. policy, Musk has effectively turned his political role into a cash grab, shielding himself and his interests from the volatility that could afflict others.

Competitive Advantages Unfolding

Take, for example, the impending threats posed by Trump’s potential tariffs on Mexican and Canadian auto parts. Traditional automakers have braced for the fallout, as escalating prices seem inevitable. However, Tesla, with its notable “American-made” vehicle status, stands to weather these storms more effectively than its entrenched competitors like Ford, GM, and Stellantis. While the loss of EV tax credits—something Musk initially supported—could deal a blow to Tesla’s finances, it may very well handcuff their domestic rivals even more severely.

Add to this equation Musk’s SpaceX, which has positioned itself as a linchpin within America’s space infrastructure, raking in at least $15 billion in federal contracts over the past decade. The likelihood of these agreements getting disrupted by a budget-conscious administration is minimal, reaffirming that Musk’s political gambit is paying dividends.

The Lesson in Predicting the Future

As I retract my previous skepticism about Musk’s government involvement, I can’t help but reflect on his trajectory. Acquiring Twitter (now “X”) might have seemed a financial blunder, one that reportedly diminished the platform’s value by around 80 percent. Yet, Musk has skillfully wielded this platform as a political megaphone, enabling him to cement his influence in the corridors of power.

Despite Trump’s reassurances that “Elon can’t do, and won’t do, anything without our approval,” thus far, it appears that Musk is operating with commendable autonomy, leveraging the administration’s support for his business strategies.

What this all boils down to is straightforward: Elon Musk is a man who seeks control—over his empire, over the narrative, and yes, over the future of infrastructure and technology in the United States. My August assertion that Musk working for Trump was a pipe dream deserves a scrupulous reconsideration. In essence, Musk is indeed working in the White House; but as always, he is indefatigably working for his own self-interest.

In the world of finance, one must not forget the core principle: with power comes responsibility. However, for Musk, the lines seem to blur, focusing instead on opportunity amidst chaos—a lesson worth heeding for investors and businesses alike who dare to enter this intricate political game.