Donald Trump’s speech to the country on election night confirmed that one of the biggest winners of the evening, besides himself, was Elon Musk.
Trump spent much of his scattered victory speech thanking Musk, who has recently poured more than $130 million and a lot of time and tweets into the conservative political cause. In particular, Trump had high praise for Musk’s rocket company SpaceX and its Starlink internet satellites — two business units ripe for government contracts.
“We must protect our super geniuses,” the president-elect said. On the campaign trail, Trump said he would create a new “government efficiency” position in his administration for tech CEOs, at Musk’s request.
Musk has been known to cite government overreach in the face of any fines or penalties. So it’s no surprise that the multibillionaire has aligned himself with Trump, who has promised to roll back the regulations.
On top of potentially looser government oversight, Musk’s alliance with Trump could help him secure federal contracts. of New York Times reports that SpaceX and Tesla have already amassed at least $15.4 billion in government contracts over the past decade. Musk’s colleagues and government officials said Reuters The billionaire’s investment in Trump is part of a broader effort to protect his companies from regulation and secure access to government subsidies.
Below are just a few of the ways each of Musk’s businesses could benefit from Trump retaking the White House.
SpaceX and Starlink
Tensions between the Federal Aviation Administration and SpaceX are high. In September, Musk called for the resignation of FAA chief Michael Whitaker over $630,000 in fines levied against SpaceX for violations involving its rocket launches. Musk has said his plans for a Department of Government Efficiency (DOGE) under Trump include easing regulations on his rocket launches.
Meanwhile, Starlink, SpaceX’s satellite internet unit, could also get a friendlier reception from the Federal Communications Commission under Trump, assuming the president nominates Republican commissioner Brendan Carr to replace current chair Jessica Rosenworcel. Carr has called the FCC’s decision in 2022 to cancel $885 million in subsidies for Starlink “regulatory harassment.” And Trump himself has suggested using Starlink’s satellite services for rural connectivity — a potential financial boon for Starlink — as part of the government’s $42 billion plan for future broadband funding.
X
Following Musk’s $44 billion takeover of what used to be Twitter, the Federal Trade Commission investigated whether X and its new owner violated an existing FTC data privacy agreement with the company. After buying the service, now known as X, Musk trimmed its privacy and security compliance teams that were supposed to keep the company in the FTC’s favor. Last week, Musk promised payback by saying FTC Chairwoman Lina Khan would be fired under the Trump administration. Never mind that Trump’s vice president, JD Vance, has praised Khan for being tough on monopolies.
xAI
Musk’s AI-generating startup, xAI, has a chatbot that competes against OpenAI’s ChatGPT and other models in big languages. Musk is therefore very interested in any regulation affecting AI.
So far, federal talks to pass broad regulation of AI companies have not materialized. But Musk could still step in by advising Trump on a lighter replacement for the Biden administration’s AI executive order, a framework for the use and development of AI that places some restrictions on AI companies.
In California, Musk supported controversial security legislation, SB 1047, that would have curbed large AI companies. This legislation was fiercely opposed by venture capitalists and large-scale developers, citing the potentially catastrophic risks of artificial intelligence.
Tesla
Federal auto safety regulators last month hit Tesla with a new investigation into its full self-driving mode, which partially automates human driving, after a Tesla driver fatally struck a pedestrian. Musk could use his influence to shape federal vehicle safety enforcement or federal regulation of self-driving cars or robotics. It’s an area he cares deeply about, as Tesla hopes to introduce robotaxis to take on more established competitors like Alphabet’s Waymo and even GM’s Cruise.
Musk may also try to lobby Trump for his opposition to the Biden administration’s electric vehicle tax credits, which incentivize electric vehicle purchases.
Trump’s promise to increase Biden’s existing tariffs on China and other competing countries could also be tricky for Musk. Curbing imports of cheaper EVs would eliminate some of Tesla’s competition in the U.S., but escalating a trade war would also hurt the technology broadly by severing reliance on China and Taiwan for chips.
Whatever the case, investors are hopeful: Tesla shares rose 15% after Trump’s victory speech.
Boring company
Musk’s visions of high-speed transit like the Boring Company’s Hyperloop project have been stifled by regulation and the limitations of current technology. Instead, it’s focused on a lower-tech version: Teslas ferrying passengers underground near the Las Vegas convention center. The project has faced an OSHA workplace safety investigation. But despite the high costs, complicated infrastructure and unsafe conditions, Musk has insisted that government regulation is to blame for tunnel projects in several other US cities. In any case, having allies in the US government could make it easier for Boring to win major infrastructure projects.
Neuralink
As the founder of brain chip company Neuralink, Musk has criticized the Food and Drug Administration’s lengthy approval processes for new drugs and medical devices, claiming at a rally in Pennsylvania that “overregulation kills people.” It was later reported that the cancer drug Musk was referring to was, in fact, approved. However, Musk’s vision of widespread “government efficiency” is likely to target the FDA as well, and potentially get his Neuralink approvals faster. So far, Neuralink has implanted brain devices in two patients with FDA approval.
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