Yahoo Finance Exactly How Much Global Financial Influence Does Elon Musk Have?
The disproportionate global influence of billionaires like Elon Musk is simply a matter of economic course. However, Musk’s unique trifecta of technological influence –from Starlink’s significance in telecommunications, Musk’s control of information on the popular social media site X, and his economic interest in manufacturing via Tesla and SpaceX — arguably affords him more significant global economic influence than any other ultra-rich person in the world.
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Throughout history, wealth has spawned influence. Typically, this influence has been exercised to shape economic policy and even foreign policy that benefit the wealthy’s financial interests or personal views.
For example, William Randolph Hearst caused the first press-driven war by casting blame on Spain for sinking the Battleship Maine, which fueled public pressure for the United States to enter the Spanish-American war. Henry Ford financed an attempt to broker peace to keep the U.S. out of both world wars. When this failed, Ford’s factories ultimately produced many vehicles for the American war effort, but refused to produce war machines for foreign states.
Musk is arguably more powerful — and more independent from the state, than either Hearst or Ford — given his control over information via social media and satellite internet, and terrestrial and extraterrestrial vehicle manufacturing. Musk controls key technologies that have made him an independent actor on the global stage, significantly impacting the economy and politics both in the U.S. and worldwide.
Recent Examples of Musk’s Power
SpaceX’s provision of Starlink internet played a crucial role in restoring connectivity on the battlefield during Russia’s invasion of Ukraine. However, in perhaps the most concerning display of Musk’s global influence, a Ukrainian attack on the Russian military was prevented by Musk’s refusal to allow Ukraine’s forces to utilize Starlink for the attack.
The notion that a single person could determine the outcome of battles in war due to control of technology was illustrated by this incident, which has angered Ukraine and concerned U.S. military leaders. It may also lead to more explicit contracts for the use of Musk’s technology in warfare.
Musk’s ownership of SpaceX, a company vital for space access, has granted him a level of autonomy that sets him apart from traditional defense contractors. With NASA and the Pentagon heavily reliant on SpaceX, Musk’s influence extends beyond economic implications, directly impacting national security and public opinion. This independence from traditional government oversight has allowed Musk to operate with a level of freedom uncommon in the defense and aerospace industry.
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In the electric vehicle sector, Tesla’s dominance has had far-reaching economic implications. Tesla’s presence in various countries has attracted foreign investment, tying Musk’s economic interests to some countries in adversarial positions to America, such as China and Saudi Arabia. Additionally, the opening of a wholly owned subsidiary in Shanghai has made Musk more financially vulnerable to pressure from the Chinese government.
Finally, Musk’s acquisition of X, the social media platform formerly known as Twitter, has further expanded his influence, granting him control over the spread of information and direct access to a user base of millions. This move has positioned Musk to shape public discourse and opinion on a global scale, much like Hearst did on a smaller scale in 1898.
Concerns About Musk’s Influence
The autonomy Musk enjoys in the U.S. is rare, particularly within the context of his continuous conflicts with the U.S. government. His companies have been investigated by both the Federal Trade Commission and the Justice Department for both things Musk has said and actions his companies have taken. It’s unlikely that Musk’s contention with the government would continue to be tolerated in other countries with more singular sources of power, such as China or Russia.
Musk’s independence also raises concerns about the extent to which his control over critical global technologies should be constrained. As his influence continues to expand, so does the complexity of his economic entanglements with foreign governments.
Musk’s vulnerability to China’s influence is concerning, particularly in cases like pandemic-related factory closures, when he did not extend the same deference to the United States government as he did to China. In an interview with Bari Weiss, Musk said that “Twitter would indeed have to be careful about the words it used regarding China, because Tesla’s business could be threatened,” according to Walter Isaacson’s recent biography of Musk.
In the future, Musk’s economic influence may decrease in the face of challenges from competitors seeking to weaken SpaceX’s market share and social media platforms vying for influence. As Chinese brands catch up in the electric vehicle market, Tesla is facing increasing competition, which may lead to the company being entirely pushed out of China. These developments could ultimately make Musk less vulnerable to China’s influence as his market-share and economic interests constrict within the Chinese market.
As the world grapples with the implications of Musk’s influence, it becomes increasingly clear that his autonomy and control over critical global technologies have transformed the economic landscape, shaping industries, markets and international relations in significant ways.
Exactly how much global influence Musk has financially is difficult to quantify, however — but it’s becoming increasingly clear that the answer is “a lot.”
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