Elon Musk envisions $2 trillion federal budget cut under Donald Trump in FY24 US Elections
Elon Musk envisions $2 trillion federal budget cut under Donald Trump in FY24 US Elections
Elon Musk envisions $2 trillion federal budget cut under Donald Trump in FY24 US Elections
Elon Musk envisions $2 trillion federal budget cut under Donald Trump in FY24 US Elections
US Elections 2024: Tech billionaire Elon Musk has on claimed that he can chop off around $2 trillion from the United States government's federal budget. The $2 trillion target represents nearly a third of existing spending, as per the report. The US government spent $6.75 trillion in FY24, according to the Treasury Department.
US Elections 2024: Tech billionaire Elon Musk has claimed that he can cut about $2 trillion from the federal budget of the United States government, reports Bloomberg.
Addressing the rally at New York's Madison Square Garden, Musk said, "Your money is being wasted. We're going to take the government off your back and pocket." Responding to a question from Cantor Fitzgerald LP's Howard Lutnick on how much Musk could "cut" from the Biden administration's budget, Musk replied, "Well, I think we can at least $2 trillion, yes." While Trump has not made it clear in his campaign how he plans to reduce the federal debt, the issue has been a hot topic of criticism against the Joe Biden-Kamala Harris-led government. He has also promised to "abolish" taxes and instead introduce a system of "tariffs", which economists have warned could be "catastrophic" for the economy.
Speaking at a rally for former US President and Republican candidate Donald Trump, Musk said that he expects "substantial government spending cuts" if Donald Trump wins the presidency this November.
According to the report, the $2 trillion target is about a third of current spending. According to the Treasury Department, the US government spent $6.75 trillion in FY24.
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Notably, Trump has said that if he is re-elected he will assign Musk the so-called 'Department of Government Efficiency' - which will consider ways to cut government spending, Bloomberg reported. Interestingly, it is abbreviated as 'DOGE', a reference to the cryptocurrency that Musk often promotes on social media.
However, critics have noted that the billionaire - in fact the world's richest person - could face a massive conflict of interest in a government position as his companies Tesla and SpaceX have billions of dollars in federal contracts, it is said. Both the automaker and the space company have taken advantage of the U.S. government's electric vehicle tax credits and infrastructure investments.
According to federal findings, Musk has spent at least $132 million to elect Trump and other Republicans in 2024, entrenching himself at the "highest levels" of the party, Bloomberg said.
Donald Trump’s social media company Trump Media is now worth more than Elon Musk’s X after surge in stock price
Donald Trump's Truth Social has surpassed Elon Musk's X in value, thanks to a surge in shares of the parent company for the former president's social media platform. As reported by AP, Trump Media & Technology Group is now valued at over $10 billion, having seen its shares more than quadruple since late September.
In comparison, X Holdings is valued at approximately $9.4 billion, according to the latest assessment from the investment group Fidelity regarding its stake in the platform formerly known as Twitter.
The stock of Trump Media, or TMTG, often fluctuates more in response to Trump's re-election chances than its own profit outlook, and recent improvements in his prospects have boosted investor confidence. On Tuesday, the stock rose nearly 9% to close at $51.51, adding to a 21.6% gain from Monday. The trading was so volatile that it was briefly halted multiple times in the morning. Just last month, the stock had dropped to around $12, the report said.
Trump founded TMTG after being banned from Twitter and Facebook following the January 6, 2021, Capitol riot. He owns about 57% of the company but does not actively manage it. Based in Sarasota, Florida, TMTG has been facing financial challenges, struggling to generate revenue while incurring significant losses. In the quarter ending in June, the company lost over $16 million, with only $837,000 in revenue, according to regulatory filings, AP reported.
When Elon Musk acquired Twitter in October 2022, the company was valued at approximately $44 billion, with Fidelity Investments valuing its stake at $19.7 million. Recently, a regulatory filing revealed that Fidelity's Blue Chip Growth fund now values its stake in X Holdings at about $4.2 million.
(Source Bloomberg)
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