Elon Musk backs Howard Lutnick as agent for ‘change’ at US Treasury

Unlock the White House Watch newsletter for free

Your guide to what the 2024 US election means for Washington and the world

Elon Musk has thrown his support behind Howard Lutnick over fellow Wall Street investor Scott Bessent in the race to be Donald Trump’s new Treasury secretary, as the world’s richest man flexes his status as close confidant to the president-elect. 

Musk, who Trump this week chose to co-lead an effort to cut government spending, on Saturday wrote on X that “Bessent is a business-as-usual choice, whereas @howardlutnik will actually enact change”. 

“Business-as-usual is driving America bankrupt, so we need change one way or another,” he added. 

The comments from the head of Tesla inject new drama into the jockeying for Trump’s treasury secretary, one of the most high profile jobs in his cabinet that has yet to be staffed. Within the past week, Trump has announced a string of nominees in foreign policy, law enforcement, healthcare and other areas. 

A representative for Bessent said he could not be reached for comment and a Lutnick spokesperson declined to comment.

Bessent, a former chief investment officer at George Soros’s family office, and Cantor Fitzgerald chief executive Lutnick, who is also co-chair of the Trump transition team, are the top contenders to lead the Treasury department. Hedge fund billionaire John Paulson dropped out of the race for the job on Tuesday. 

Paulson said that “complex financial obligations would prevent” him from entering the administration “at this time” but he would continue advising Trump’s economic team.

Bessent and Lutnick have been spotted around Palm Beach and Mar-a-Lago, Trump’s Florida home and resort, since the former president won the 2024 general election last week.

Lutnick promoted Musk and his “department of government efficiency” at a Madison Square Garden rally for Trump last month.

Backers of Bessent, meanwhile, include Larry Kudlow, a key economic adviser to Trump in his first term, Steve Bannon, and his former boss and mentor, investor Stan Druckenmiller.

Musk wrote that “Courage during tough times is a great virtue,” in response to an X post by the CEO of Rumble praising Lutnick’s choice to support the business. Rumble went public via a special acquisition company led by the Wall Street investor.

Bessent has been criticised by some Trump allies for not being aligned with the president-elect on tariffs. However, Bessent wrote a Fox op-ed published Friday saying that tariffs are a “useful tool” to accomplish foreign policy objectives and raise revenue.

“The truth is that other countries have taken advantage of the US’s openness for far too long, because we allowed them to,” he wrote. “Tariffs are a means to finally stand up for Americans.”

Musk’s social media posts will be a test of his growing influence over Trump. The entrepreneur became one of the ex-president’s most vocal cheerleaders and prominent funders during his campaign — loyalty that Trump has rewarded by appointing Musk and Vivek Ramaswamy to lead the cost-cutting drive.

Musk has said he can cut $2tn out of government spending.

The billionaire also joined Trump during a call with Volodymyr Zelenskyy, president of Ukraine, last week to discuss the war there.

In response to Musk backing Lutnick, investor James Fishback, a Bessent fan, asked the entrepreneur on X to moderate an interview with the pair.

“I’m open to that,” replied Musk.