- Elon Musk’s Friday go to to the Pentagon drew criticism and highlighted his corporations’ 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 yr 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 battle with China, The New York Instances reported, though protection officers later stated he would obtain an unclassified briefing, in keeping with the Wall Avenue 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 battle with China, as was reported by the Instances 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 battle with China, and talked about that the billionaire’s companies may play a job.
“We don’t need to have a possible battle with China, however I can let you know if we did, we’re very well-equipped to deal with it, however I don’t need to present that to anyone however actually you wouldn’t present it to a businessman,” Trump stated. “Elon has companies in China and he can be inclined maybe to that.”
No matter data he obtained (he replied “Why ought to I let you know?” 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 submit that Musk shouldn’t have been on the Pentagon.
“Elon Musk is an unelected, self-interested billionaire with no enterprise wherever close to the Pentagon,” Gillibrand wrote in a submit on X.
It’s unclear whether or not different protection corporations would file lawsuits primarily based on Musk’s entry, however even when they do it’s uncertain they’d prevail in court docket, stated Case Western Reserve College regulation professor Anat Alon-Beck.
“No person’s promised equal entry to that sort of data,” Alon-Beck instructed Fortune. “We have all the time had individuals—with the earlier administrations as nicely—having entry versus others who do not. So it isn’t nearly 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 usually 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’ve some vested pursuits in China however actually, I feel China is underrated and I feel the individuals of China are actually superior and there’s numerous optimistic vitality there,” he stated on the time.
Amongst his “vested pursuits” and involvements with China are the next:
- Tesla’s largest manufacturing facility, Gigafactory Shanghai, is situated in China. Half of Tesla’s automobiles globally have been made there as of final yr.
- Regardless of a latest 49% drop in deliveries, China continues to be one in all 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 Instances reported. Musk final yr instructed corporations making Starlink parts in Taiwan to maneuver manufacturing to different international locations due to “geopolitical issues.”
Within the U.S., SpaceX is a serious 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 obtained $11.4 billion in regulatory credit from federal and state governments, in keeping with a Washington Put up evaluation. Cumulatively, Musk’s corporations have obtained $38 billion price of presidency contracts, loans, subsidies, and tax credit going again 20 years, the Put up reported.
This story was initially featured on Fortune.com
