Rise of the broligarch: The evolution of Elon Musk

Another stock-related controversy involving Musk dates back to 2016, when Tesla’s board approved the buyout of SolarCity, a company Musk co-founded. In 2023, Musk successfully argued in court that he had not pressured Tesla’s board into approving the deal, even though analysts had pointed out that the acquisition was financially burdensome for Tesla.

By mid-2024, a U.S. fraud investigation into Tesla's self-driving technology came to light. The DOJ questioned the legality of statements made by Tesla and Musk himself suggesting that Tesla vehicles were fully autonomous. Under U.S. law, manufacturers of self-driving cars are required to warn drivers that they must remain attentive at all times and be ready to take control. Tesla does provide such warnings, but U.S. authorities argue that Musk’s public statements undermine this guidance. If the DOJ can prove this, Musk and Tesla could face fraud charges for misleading investors about the company's product capabilities — or even defrauding Tesla customers.

This was not the only lawsuit against Musk’s companies in 2024.

Now, with Musk’s new position in the U.S. political system — one that gives him direct access to Treasury payment data — he has unprecedented opportunities to manipulate the market. It is the kind of influence he could only dream of having before.

Musk at the helm

The long list of scandals involving Elon Musk and his companies paints a clear picture of his complex relationship with government regulators, his dependence on state contracts, and, ultimately, his desire to sit as close as possible to the Oval Office. Just like at Trump’s Mar-a-Lago estate, where Musk has been a frequent visitor of late, he now enjoys direct access to the U.S. president, sitting in on phone calls with foreign leaders and lobbying for government funding for his next business venture.

In an administration where the president often makes unilateral decisions based on impulse, having direct access is precisely what transforms a wealthy businessman with political ambitions into an oligarch.

This was the warning Joe Biden issued in his farewell speech, cautioning Americans about a rising oligarchy in the U.S., where the wealthiest individuals could end up in direct control of government power. On the eve of Trump’s inauguration, U.S. media speculated that the billionaire would be given an office in the West Wing. However, this idea was shot down by Trump’s chief of staff, Susie Wiles, a key figure in his reelection campaign. The administration’s “ice maiden” is credited with playing a major role behind the scenes to convince Trump to run for a second term.

While Musk didn’t get an office in the White House, he relocated to Mar-a-Lago, moving into a house next door to Trump’s, where the two have been virtually inseparable since the election. Formally, Musk holds the title of “special government employee” — a position without a salary (which he doesn’t need anyway) but one that grants him official access to classified information.

Under his control, a newly created government body was established: the Department of Government Efficiency (DOGE). Its staff consists entirely of Musk’s handpicked engineers, aged 19 to 25, who come in with zero experience in public administration. Critics have already dubbed the group the “Hitler Youth.” From the outset, the DOGE team has acted aggressively. The department's official mission is to streamline the American bureaucracy, but Musk has made it clear that its real goal is to cut funding for programs he and his allies deem too left-leaning.

Musk has long despised organizations like USAID, which provide funding to nonprofits worldwide, including in Ukraine. He has called USAID «a den of worms.»

In early February, DOGE agents showed up at USAID’s headquarters in Washington, D.C. and began imposing their own rules. Staff members were terrified as DOGE officers searched offices and recorded phone calls. “We took down our Pride flags [and] I took out any books I felt would be incriminating. No one was talking. We heard they started taking transcripts automatically of all of our Google Meets,” recalled USAID employee Kristina Dry. Shortly afterward, USAID’s website was taken offline, and employees lost access to their work computers. DOGE attempted to access classified information but was blocked by security, as they lacked the required clearance. Later, Musk successfully pushed for mass layoffs at USAID, and he openly admits he wants to shut down the agency entirely.

DOGE’s actions are now facing legal pushback — three lawsuits have already been filed against Musk’s so-called “department.” There is precedent for this: earlier, the Trump-Musk team attempted to freeze internal federal grants, but a court ruling forced them to reverse the decision.

The DOGE team has not only gained access to USAID’s documents but has now infiltrated the entire U.S. Treasury payment system. Officials at the Treasury Department have sought to reassure the public, insisting that despite Musk’s repeated talk on social media about his plans to “shut down illegal payments,” he lacks the authority to take direct action. However, concerns are mounting in Congress, where lawmakers have warned that the politicization of Treasury operations could pose a serious threat to national governance.

At the same time, Musk has been extraordinarily active on the international stage, making waves with a series of controversial political interventions. He addressed a meeting of the far-right Alternative for Germany (AfD) party, voiced support for British neo-Nazi Tommy Robinson, and accused UK Prime Minister Keir Starmer of attempting to “undermine” the U.S. presidential election.

These actions have triggered outrage in both Germany and the UK. Three-quarters of respondents in both countries consider Musk’s interference in their domestic politics unacceptable, and more than 70% now view him in a negative light. Europeans and Britons were already largely opposed to Trump’s return to power, but if Musk continues on this path, transatlantic relations could come under serious strain.

The alliance between the U.S. president and the world’s richest man is unprecedented in modern democratic history. It presents a major stress test for the American political system — one for which, just two weeks into Trump’s presidency, the system appears entirely unprepared.