- Elon Musk’s Friday go to to the Pentagon drew criticism and highlighted his firms’ hyperlinks to each the federal authorities and China. The billionaire’s rocket firm SpaceX has $22 billion in contracts with the federal authorities. In China, Musk’s Tesla operates its largest manufacturing facility, Gigafactory Shanghai, which as of final 12 months produced about half of all Tesla automobiles.
Elon Musk visited the Pentagon Friday for a briefing on China which underscored the billionaire’s steadily rising affect within the Trump administration in addition to his companies’ deep ties to each the federal authorities and China.
Musk was initially meant to obtain a briefing on top-secret data associated to a possible warfare with China, The New York Occasions reported, though protection officers later stated he would obtain an unclassified briefing, in keeping with the Wall Road Journal. The Protection Secretary Pete Hegseth and President Trump have each denied that Musk visited the Pentagon to obtain top-secret data on a doable warfare with China, as was reported by the Occasions previous to Musk’s go to Friday.
Earlier than reporters within the Oval Workplace, Trump famous that Musk wouldn’t see top-secret data on a possible warfare with China, and talked about that the billionaire’s companies might play a task.
“We don’t want to have a potential war with China, but I can tell you if we did, we’re very well-equipped to handle it, but I don’t want to show that to anybody but certainly you wouldn’t show it to a businessman,” Trump stated. “Elon has businesses in China and he would be susceptible perhaps to that.”
No matter data he acquired (he replied “Why should I tell you?” to a reporter’s query concerning the topic of the assembly), the potential high-level nature of his Pentagon go to has drawn scrutiny.
Sen. Kirsten Gillibrand (D-N.Y.), who can also be a senior member of the Senate’s Armed Companies Committee, wrote in a publish that Musk shouldn’t have been on the Pentagon.
“Elon Musk is an unelected, self-interested billionaire with no business anywhere near the Pentagon,” Gillibrand wrote in a publish on X.
It’s unclear whether or not different protection firms would file lawsuits based mostly on Musk’s entry, however even when they do it’s uncertain they’d prevail in courtroom, stated Case Western Reserve College regulation professor Anat Alon-Beck.
“Nobody’s promised equal access to that type of information,” Alon-Beck informed Fortune. “We’ve always had people—with the previous administrations as well—having access versus others who don’t. So it’s not just about Musk.”
Nonetheless, Musk’s companies have deep ties to China. His EV maker Tesla has been promoting automobiles within the nation for a decade and Musk has typically spoken positively concerning the nation. In 2023, throughout an audio interview with U.S. lawmakers on his social media community X, the CEO stated he was “pro-China.”
“I have some vested interests in China but honestly, I think China is underrated and I think the people of China are really awesome and there’s a lot of positive energy there,” he stated on the time.
Amongst his “vested interests” and involvements with China are the next:
- Tesla’s largest manufacturing facility, Gigafactory Shanghai, is situated in China. Half of Tesla’s automobiles globally had been made there as of final 12 months.
- Regardless of a latest 49% drop in deliveries, China continues to be considered one of Tesla’s largest markets behind the U.S.
- The Chinese language authorities has reportedly “sought assurances” that Musk wouldn’t promote Starlink in China, the Monetary Occasions reported. Musk final 12 months informed firms making Starlink parts in Taiwan to maneuver manufacturing to different international locations due to “geopolitical concerns.”
Within the U.S., SpaceX is a significant authorities contractor with about $22 billion in authorities contracts, in keeping with its CEO. Its subsidiary, Starlink, helps the Pentagon present web entry in distant environments.
Tesla, for its half, has acquired $11.4 billion in regulatory credit from federal and state governments, in keeping with a Washington Put up evaluation. Cumulatively, Musk’s firms have acquired $38 billion value of presidency contracts, loans, subsidies, and tax credit going again 20 years, the Put up reported.
This story was initially featured on Fortune.com
