Elon Musk, one of the world’s most influential entrepreneurs, has expanded his role and ambition from disrupting technology to wanting to disrupt global political discussions. The world’s richest person vies to become the world’s Chief Disruption Officer.

Known for his leadership of Tesla, X, SpaceX, Starlink and other groundbreaking companies, Musk has waded into the political sphere with recent political endorsements and activities that have sparked significant global debate.

But, his moves and statements have been controversial, with him supporting right-wing, far-right and libertarian figures and parties, including Donald Trump, Germany’s Alternative for Germany (AfD) party, and UK politicians Nigel Farage and Tommy Robinson, actions that raise questions about his motivations, potential business consequences, and the opportunities he might actually be creating for his own ventures.

Musk’s Political Footprint: Support for Right-Wing Agendas

Musk’s political involvement became headline news during the 2024 U.S. presidential election last year when he donated over $277 million to Donald Trump’s campaign and other Republican candidates. This made him the largest individual donor of the election cycle. However, his influence has not been confined to the U.S. In Germany, Musk expressed support for the far-right AfD party, prompting Chancellor Olaf Scholz to raise concerns about foreign influence in domestic politics. Similarly, in the UK, Musk’s public criticism of Prime Minister Keir Starmer and advocacy for controversial figures like Tommy Robinson have drawn sharp responses from political leaders.

Musk has used his social media platform, X (formerly Twitter), to amplify his views and those of people and causes that he supports. Since he bought the platform, he has stripped out any moderation ability and promoted it as a place for free speech, aligning it with his self-declared view of being a ‘free-speech absolutist.’

As the global town square owner of a platform with over 450 million active users and dropping, his comments have far-reaching implications, shaping political discourse and impacting relationships with stakeholders in various markets. What he says on X is picked up by traditional journalists who take the questioning to who he questions without returning to him for context or comment.

Elon knows that today’s personality and celebrity culture are ways of living that serve him very well in influencing others and promoting his views.

Potential Motivations: Ideology or Business Strategy?

Musk's libertarian-leaning views might influence his engagement with right-wing politics, which favour minimal government intervention. However, there are likely business considerations at play as well.

Many right-wing governments advocate for deregulation and lower corporate taxes, both of which could benefit Musk’s companies. For instance:

• Tesla, which dominates the electric vehicle (EV) market, is subject to stringent regulations on emissions, manufacturing, and supply chains. Right-wing policies promoting deregulation could lower compliance costs and increase profit margins. Additionally, with other car manufacturers, such as from China, starting to compete with his cars on price and product, it is in his interest to challenge any policy that allows any competition to his position.

• SpaceX and Starlink, which rely heavily on government contracts for satellite launches and space exploration, could gain from a political climate that prioritises defence and space advancements over other federal US expenditures.

• X, as a privately held social media platform, benefits from Musk’s advocacy for unrestricted speech, aligning with libertarian principles that appeal to some right-wing ideologies.

Challenges from China’s EV Industry and Market Preferences

Musk’s political endorsements may also be a strategic reaction to China's growing competition in the EV market. Chinese automakers, supported by state subsidies and favourable policies, are rapidly expanding their global footprint. But this has pushed the EU to impose a 35% tariff on Chinese EVs.

Tesla faces increasing pressure as nations, including some European markets, appear to tilt toward Chinese EVs due to their affordability and government incentives. If political decisions in key markets favour China’s EV industry, Tesla could be disadvantaged. For instance, the European Union’s recent focus on investigating subsidies for Chinese EVs reflects a challenging dynamic for Tesla, which depends heavily on sales in these markets.

Just this week, Tesla reported its first-ever slip in sales as competition grows. This is a critical issue for Elon Musk, whose net worth is tied to the shares he owns in Tesla, which he uses to gain capital and debt for other projects. Elon needs Tesla to maintain a high price, which is why, as you would expect, competition isn’t good for him.

Investors and Revenue Streams: Who Stands Behind Musk’s Ventures?

Musk’s companies operate across diverse sectors and attract a wide range of investors. While Musk himself retains significant ownership stakes, external investors contribute heavily:

• Tesla derives most of its revenue from vehicle sales, with additional income from energy storage and solar products. While major institutional investors include U.S.-based firms such as The Vanguard Group and BlackRock own Tesla, Elon still retains around 13% of the company, contributing significantly to his wealth. In terms of revenue, in 2023, Tesla generated about 46% of its total revenue in the US, 22% in China and approximately 30% was derived from various countries, including those in Europe and other regions.

• SpaceX and Starlink earn revenue from satellite launches and US government contracts, with investments from entities like Google and Fidelity Investments. Just this week, Politico reported that Musk was ready to provide Italian Prime Minister Meloni with Starlink secure comms in a contract potentially valued at €1.5 billion, a move that would equally anger the EU.

• X was financed privately during Musk’s acquisition, with contributors including Saudi Arabian investor Prince Alwaleed bin Talal and 

• Neuralink and The Boring Company, though still in the development stages, have attracted funding from venture capital firms and private investors.

The geopolitical affiliations of these investors could complicate Musk’s political activities.

For instance, Saudi Arabia’s involvement in X raises questions about how Musk’s support for right-wing populists might align—or conflict—with the broader geopolitical interests of his investors. Additionally, his recent Series B and C funding rounds for X.ai from venture capital companies that the private market will still invest in him.

Reputational and Strategic Communication Impacts

Musk’s outspoken political positions have, as expected, sparked polarising reactions.

While his supporters hail him as a champion of free speech and individual liberties, his critics argue that these endorsements risk tarnishing his companies' reputations.

For Tesla, customer perception could be a significant concern. The EV market is often driven by environmentally conscious consumers, many of whom in markets around the world may be alienated by Musk’s alignment with controversial political figures.

In addition, Musk’s international endorsements risk straining diplomatic relationships. For example, his public support for Germany’s AfD party has already drawn criticism from Germany’s current Chancellor Scholz, highlighting the risks of perceived foreign interference. Similarly, his comments about UK politics have provoked strong reactions from MPs from across the political spectrum.

On the platform side, X is also feeling the repercussions. Musk’s political commentary has continued to raise questions about the platform's objectivity and attractiveness to advertisers, many of whom have already left. Other brands may hesitate to associate themselves with a platform increasingly perceived as a vehicle for polarising political content.

How Musk’s Targets Are Reacting

Political figures targeted by Musk have responded with varying degrees of resistance. In the UK, Prime Minister Starmer has rightly dismissed Musk’s comments as “lies and misinformation,” while Nigel Farage distanced himself from Musk’s endorsement of far-right activist Tommy Robinson. These reactions highlight the nuanced challenges Musk faces in building political alliances that align with his views and/or business objectives.

If he cares, Musk risks becoming a liability to the political class that he has associated himself within the US, which further creates a risk to the companies that he has founded and has taken to market.

Strategic Considerations for Global Leaders and CEOs

Musk’s political activities underscore the intersection of business strategy and political engagement.

Senior business leaders and policymakers must consider the implications of associating with polarising figures, especially in markets with diverse consumer bases and regulatory frameworks.

While a traditional corporate leader might work to navigate the delicate balance between personal ideology and corporate interests, Musk isn’t a traditional leader. Instead, he is a disruptor who is too big to fail and focuses less on the reputational risk and more on the influence he can leverage from building an international base around himself and his ventures, especially in AI.

A High-Stakes Gamble

Elon Musk’s political endorsements reflect a complex interplay of personal beliefs, business strategy, and global competition. While these actions may secure short-term benefits in deregulation, tax relief, and incentives, the long-term reputational risks to his companies are slowly growing.

For CEOs and senior leaders, Musk’s approach serves as both a cautionary tale and a strategic case study in managing the interplay between business and politics in an increasingly interconnected world.

Musk is advocating an aggressive viewpoint without considering the opinions of those who praise him. If they react and there are consequences, then there could be consequences for his value and his ventures.