Musk 'Whispering' Advice To Trump May Serve His 'Own Bottom Line': Elizabeth Warren

Senator Elizabeth Warren (D-Mass.) sent a letter to President-elect Donald Trump Tuesday questioning the potential conflicts of interest in having billionaire Elon Musk as an advisor to the new White House team.

What Happened: Warren, who has clashed with Trump and Musk previously, took aim at Musk’s new role in the Department of Government Efficiency, also known as D.O.G.E. in the letter.

"I write regarding concerns about the dual roles played by Elon Musk in your transition and the need to resolve his conflicts of interest if he wishes to continue serving as a top adviser to you and your transition team," Warren wrote.

Warren said Musk is the CEO of several companies that have government contracts, including SpaceX and Tesla Inc TSLA.

Benzinga reached out to the Trump transition team and Tesla for comment.

"SpaceX, Tesla, and Mr. Musk's other companies have an ongoing interest in how the government does or does not enforce labor laws, workplace safety rules, environmental regulations, and other federal laws."

The letter said Musk and his companies have been the subject of numerous investigations by the Justice Department, Transportation Department, National Highway Traffic Safety Administration, and the National Labor Relations Board.

"Mr. Musk's substantial private interests present a massive conflict of interest with the role he has taken on as your ‘unofficial co-president.’ Currently, the American public has no way of knowing whether the advice that he is whispering to you in secret is good for the country – or merely good for his own bottom line."

The senator reminded Trump that federal law contains ethics rules for government employees to make sure they are working for the public interest.

"Specifically, federal financial conflict-of-interest rules prohibit federal employees from working on particular matters that affect their own financial interests."

Warren said that while Musk is not a federal employee as part of the transition team, the conflicts are "enormous," and he should be held to a similar ethics standard.

Warren said Trump should provide clarity on Musk's role to "reassure the American public that he is working solely on their behalf and not using his role in the transition as an opportunity to fatten his own wallet."

The Warren letter contained multiple questions she would like answered by the Trump transition team no later than Dec. 23, 2024.

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Why It's Important: Trump's transition team provided comment to several media outlets, including the Daily Mail.

"President Trump has assembled the most impressive and qualified team of innovators, entrepreneurs, and geniuses to advise and staff our government," Trump's incoming press secretary Karoline Leavitt told the Daily Mail.

Using the Pocahontas nickname, which Trump has often used over the Senator's previous claims of having Native American heritage, Leavitt criticized Tuesday's letter.

"Pocahontas can play political games and send toothless letters, but the Trump-Vance transition will continue to be held to the highest ethical and legal standards possible – a standard unfamiliar to a career politician whose societal impact is 1/1024^th of Elon Musk's."

Musk claimed on X that Warren's letter was written by "SBF's parents," a reference to former FTX CEO Sam Bankman-Fried, while quoting a post about the societal impact of the senator versus the Tesla CEO.

"The president was being very generous. Her societal impact is actually negative," Musk replied to another post on the topic.

Warren highlighted the large gain in Musk’s wealth since Trump won the 2024 election with the gain of Tesla stock price. Musk is currently the richest person in the world, worth $474 billion, which is up $245 billion year-to-date, as reported by Bloomberg.

While Musk’s wealth is already up significantly in 2024, it could increase further in the coming years. Musk could benefit from the new White House administration, which could eliminate EV tax credits that would hurt Tesla competitors.

There is also optimism that the new administration could support regulation for self-driving vehicles such as the Tesla robotaxi, reversing course on Trump’s previous plan to ban autonomous vehicles.

The Department of Government Efficiency is set to review government spending cuts, a move that could benefit Elon Musk or target his competitors. A report indicates the D.O.G.E. will investigate a government loan provided to Tesla EV rival Rivian Automotive.

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