Elon Musk's political influence has reached new heights as he leveraged his platform, X, to criticize a recent government spending bill on December 20, 2024. Through over 150 posts, Musk exaggerated pay raises for Congress members and labeled the bill as 'criminal,' which led to significant engagement, garnering tens of millions of views. This online uproar prompted elected Republicans to abandon the bill, showcasing Musk's power to sway political discourse, akin to a 'shadow vice president' due to his substantial political donations, including $277 million to Donald Trump's campaign [55c21f3a].
In a surprising turn, Musk attempted to shift blame for a potential government shutdown to Democrats after previously supporting it. He criticized House Minority Leader Hakeem Jeffries and claimed responsibility for the shutdown, despite his earlier posts on X indicating support for such a move. This shift in narrative reflects Musk's growing influence over GOP members, with some suggesting he could replace House Speaker Mike Johnson, who struggled to pass a 'clean' spending bill that ultimately failed with 174 votes for and 235 against [ac2425b5].
Musk's posts have received 16 times the engagement of incoming congressional members, highlighting his substantial reach and influence within the political landscape. Some members of Congress, including Senators Rand Paul and Mike Lee, have even suggested Musk as a potential House Speaker, reflecting the extent of his sway among certain Republican circles [55c21f3a]. Despite some pushback from within the party, Musk's alignment with Trump continues to solidify his position as a significant political player.
However, Musk's control over X has raised concerns, particularly regarding the platform's role in disseminating extremist content. His $44 billion acquisition of Twitter has not proven financially wise, as the platform has seen a decline in both advertisers and users. Nevertheless, Musk's political power remains formidable, as he continues to shape discussions and influence decisions through X [55c21f3a].
In the context of X's financial struggles, Wall Street banks are still hopeful that Musk's political connections could help offload approximately $13 billion of debt tied to his acquisition. The banks, including Morgan Stanley and Bank of America, are optimistic that Musk's ties to Trump could enhance X's prospects, especially as the platform prepares to report its finances next month [2f3cc4f3]. As X targets small and medium-sized businesses and lifts its ban on political advertising, the future of the platform and its financial recovery remains uncertain, with stakeholders closely monitoring developments in both the political and social media landscapes [2f3cc4f3].