Donald Trump heading back to the
White House. This will usher in an unprecedented era in American history. In a dramatic political comeback, Donald Trump will return to the White
House, and if he's going to share the credit for his victory
with anyone, it's this guy.

Where is he? Come on up here. Elan. Come here. Elon Musk, known for selling
cars, making rockets, became one of the biggest political
donors in American history. Even with the Supreme Court's
Citizens United ruling, 

allowing corporations to spend unlimited
amounts on campaigns. The nearly $200 million that Musk spent,
along with his intense campaigning, both on X and on the
ground, dwarfs precedent. A star is born, Elon. And he's already reaping the rewards.
Immediately after Trump's victory, 

Tesla shares went through the roof. In a single day after the election, his
net worth goes up by like $26 billion, and that's just the beginning. Trump is
in a position to make him even richer. Musk is like the de facto vice president, 

and he is going to have a role kind of
reshaping the contours of the federal government going forward. There's a word for guys like this.
Elon Musk is an oligarch, and by that I mean in the sense that
 he is a very wealthy business person 

who has used and seems to be
interested in continuing to use his political connections to make money. Imagine Taylor Swift, Warren Buffett,
Rupert Murdoch were all rolled into one. That's Elon Musk. So what does Elon Musk want
from this newfound power?

Musk wants a lot of
things from Donald Trump. Elon Musk's journey to Kingmaker began
intentionally or not with his acquisition of Twitter. In 2022, Elon Musk paid 44 billion to buy Twitter, and conventional wisdom is Elon Musk
destroyed Twitter. And from a business

standpoint, that is true. If you look at what investors have said
is about 80% less than it was when Elon Musk bought it. But I don't think
Elon Musk looks at this as a business decision. He looks at it as a cultural and a
political play as influence as a way to

change the culture from what he sees
As too left-wing to woke, however you want to put it. It is now basically the center from which a lot of right-wing culture
and political advocacy is originating. One of Musk's very first actions at
Twitter before even rebranding it as X was

to reinstate Donald Trump's account,
which had been suspended in 2022, following the January 6th insurrection. His return to Twitter was
marked by this notorious post. He saved free speech. Even though
Trump's own platform Truth Social is

in competition with Twitter, Musk's reach
exposed Trump to a whole new audience. Musk kind of opened the door for a lot
of people who maybe would never have looked at Trump or considered voting
for Trump to take a look at him like the

young men who follow Elon and think
that Elon is great, now see Trump in a different light, and he has given Trump a gravitas that
maybe he didn't have before.  It's one thing to have Hulk Hogan
speaking at Madison Square
Garden for you, it's another

to have arguably the most successful
capitalists in a generation speak. The future is going to be amazing!
This is like a mutually beneficial
business arrangement, right?
Trump got money and got elected, Musk gets sway over
the federal government.

This mutually beneficial arrangement
includes a new role for Musk that raises a whole host of potential conflicts. At the Madison Square Garden rally, Howard Lutnick introduced Musk as the
co-chair of the Department of Government Efficiencies.
We set up Doge.

Yes, I think the funniest name is DOGE, the Doge Department of
Government Efficiency. Musk
wants the federal government to mostly get out of his way.
Tesla is an electric car company, and it very much would like the federal
government to approve its business in

Robotaxis driverless cars.
Elon Musk runs Neuralink, which sells brain implants.
Elon Musk would very much like the federal government to legalize that, and
you could kind of go on and on. While pushing for less federal oversight.

Musk also stands to gain billions. Elon Musk owns a major defense
contractor. It's called SpaceX. The US government is their
most important client. SpaceX has already gotten billions of
dollars worth of contracts between 2009

and 2024, but this could
pale in comparison to future
contracts under the Trump-Musk Alliance. He would like as many more contracts
as possible and would like a president who would say, create a new Mars program
and hire him to send the rockets up.

Starlink is SpaceX's network of
space-based satellites. They are operating in roughly 100 countries
around the world. They have applied for FCC licenses to kind
of expand rural areas. That satellite business. Would very much like some of its own
defense contracts as well as subsidies for

regular people to buy internet from it. It's highly unusual for the CEO of
so many companies to play such a strong role in an incoming administration
where he will have sway over the agencies that the government regulates.
Ideally, he would recuse himself or he would
not be involved in those. But this is

Trump 2.0, the sort of old rules of conflicts of
interest that may be out the window here. He's a great business guy and he's a
great cost cutter. You've seen that Elon Musk just sort of laid off
80% of Twitter's workforce

basically by waving his hand back in 2022.
He cut around 20% of Tesla earlier this year, just kind of spur the
moment. So if I were a federal worker, a civil servant, or maybe running a
union that represents federal workers,

I would be very worried. He's going to go through every agency,
securities and Exchange Commission, the Department of Justice, NASA, the FAA. But I think that
everything is on the table. Musk has proposed cutting up to $2
trillion from the federal budget.

$2 Trillion is a huge amount of money
that really hits that entitlement. Programs like Social Security and Medicare
and Medicaid and veterans benefits, that's going to bring real pain. Even with a friendly Congress, however, it's unlikely that members would approve
such major entitlement cuts given the

political risks. And perhaps the most alarming conflict
of Musk's cost-cutting role is his potential ability to halt unfavorable
investigations into his business dealings. Right now, there are between a half dozen and a
dozen different investigations into Elon

Musk's companies.
I can't comment because it's legal stuff, but I'm curious what you guys think.
It's not like he can just order those investigations closed, but if he is in a position to control
the federal budget, what better way to

deal with an investigation than to just
defund the agency that is supposed to be doing that investigation? If there's one thing we learned
from the last Trump presidency, which is that it doesn't really matter
what your job is in the Trump White

House. What matters is who is talking to
Trump on a regular basis. And right now that is Elon Musk. Musk and Trump are very similar men
in that they both love to be the main character. They don't like
to share the limelight.

And it's hard to imagine that these
two giant personalities will be able to stay in the same room and stay aligned
for a really long time without running into problems.
But Elon and Trump need each other, and that is what's different,

and that is what could make Musk's
influence much more lasting.

What Elon Musk Wants From Donald Trump

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Bloomberg Originals

Donald Trump's return to the White House marks a significant political comeback.

Elon Musk's substantial political donations played a crucial role in Trump's victory.

Musk's financial gains following Trump's win were substantial.

Musk's influence is described as that of a de facto vice president.

Musk is characterized as an oligarch leveraging political connections for financial gain.

Musk's Acquisition of Twitter and Political Influence

Musk's acquisition of Twitter is viewed as a cultural and political move rather than purely a business decision.

Musk's actions on Twitter are seen as shifting the platform's cultural and political leanings.

Reinstatement of Trump's Twitter account was a key early action.

Trump's return to Twitter broadened his reach to a new audience.

Musk's actions impacted the perception of Trump among certain demographics.

Musk's new role raises concerns about potential conflicts of interest.

Musk's companies stand to benefit from reduced federal oversight.

Musk's companies, including SpaceX and Neuralink, could gain significantly from government contracts and approvals.

SpaceX's potential for increased contracts under the Trump administration is highlighted.

Starlink's potential for increased contracts and subsidies is mentioned.

Musk's Cost-Cutting Measures and Potential Impact

Musk's history of cost-cutting measures through layoffs raises concerns about potential impact on federal workforce.

Concerns are raised about the potential impact on various federal agencies.

Musk's proposed budget cuts of $2 trillion could significantly affect entitlement programs.

The political feasibility of such major entitlement cuts is questioned.

Numerous investigations into Musk's companies are ongoing.

Concerns are raised about the potential for Musk to influence or halt investigations through budget control.

The importance of close proximity to Trump in influencing decisions is highlighted.

The personalities of Trump and Musk are described as potentially conflicting.

Despite potential conflicts, their mutual need for each other is emphasized.