Donald Trump’s election night address to the nation was something of a victory celebration, but for one of his most notable supporters, the real winner was Elon Musk. The tech billionaire had invested over $130 million and expended considerable energy supporting Trump’s conservative political agenda, receiving special mention from the president-elect as he thanked Musk for his contributions. Trump praised Musk's ventures, particularly SpaceX, highlighting their potential for lucrative government contracts.
Trump appointed Musk to create a new "government efficiency" position, also known as the Department of Government Efficiency (DOGE)—a nod to both Musk’s interests and the popular cryptocurrency meme. This was hardly surprising, considering Musk's tendency to criticize government regulations whenever his companies face financial penalties or scrutiny. With Trump’s promise to roll back oversight, the relationship between Musk and the incoming administration appears promising for the tech magnate, who has been very vocal about his discontent with perceived overreach.
The opportunity to secure federal contracts could significantly benefit Musk’s companies. Over the last decade, SpaceX and Tesla have already accumulated approximately $15.4 billion from government contracts. Given Trump’s commitment to reducing regulations, including those surrounding technology and engineering projects, Musk may find it easier to navigate federal waters with Trump at the helm. This newfound alliance is expected to help Musk continue enhancing his wealth and influence as he pushes for expanded functionalities within his business ventures ranging from vehicles to space travel.
Specific sectors where Musk is likely to benefit include SpaceX and its subsidiary, Starlink. With the Federal Aviation Administration (FAA) at odds with Musk over several fines and regulatory concerns following launch violations, Trump’s anticipated influence over the FAA could make this regulatory friction dramatically lighter. It is also anticipated Musk will advocate for changes within the Federal Communications Commission, which may result favorably for Starlink as it looks to secure federal subsidies for rural internet access.
Meanwhile, Musk's social media platform, X (formerly Twitter), had also caught the eye of investigation from the Federal Trade Commission (FTC) after allegations surfaced concerning data privacy violations. Trump has been known to show disfavor for the FTC’s current chair and exhibited willingness to shake things up, including terminating high-ranking officials who have displeased him. Under Trump’s administration, it is expected such investigations could shift favorably for Musk.
Not to be overlooked is Musk's ambitious AI venture, xAI, which directly competes with other leading artificial intelligence developers such as OpenAI. With Biden’s regulations on AI development introducing restrictions, Musk has the potential to guide Trump toward adopting more lenient measures, thereby giving his company room to advance. This freedom might assist xAI to flourish among current competitors and expand its project portfolio.
Tesla, too, might see benefits from the Trump administration if it can leverage potential tax breaks or incentives. Trump’s commitment to cutting federal oversight, particularly on safety regulations, might appeal to Musk’s ambition of producing robotaxis, particularly as traditional competitors like Waymo continue aggressively to expand their market share. Further, if Trump does increase tariffs on foreign electric vehicles from China and other countries—an initiative his administration had previously endorsed—this could limit competition for Tesla.
Then there’s Boring Company, Musk’s infrastructure project aimed at revolutionizing tunnel transportation. Past attempts to launch high-speed underground transit projects have faced governmental hurdles, but should Trump’s administration support such innovative infrastructure endeavors, Musk might finally see his vision brought to fruition. This push could avoid the bottlenecks traditionally tied to local or state approvals.
No discussion about Musk would be complete without mentioning Neuralink, the brain-machine interface company he co-founded. Musk's desire for swifter approval processes by the FDA could intersect with Trump’s commitment to accelerating technology implementation, possibly expediting the process for new medical devices and drugs.
The risks of these intertwined interests, unique ethical entanglements aside, don’t escape observation. Critics cite concerns about conflicts of interest, particularly with Musk’s companies under review by multiple agencies due to safety violations and regulation issues. Should Musk wield influence over bodies like the Department of Transportation or the Environmental Protection Agency (EPA), it raises serious questions about national security and the accountability of these agencies.
Meshed within this vibrant network of possibilities, Musk's hand-in-hand relationship with Trump emphasizes the broader theme of personal interests within government corridors, stirring apprehension about what such connections might mean for U.S. policy. The spotlight on Musk also gets amplified by his open praises for Trump, such as his remarks about employing innovative solutions for systemic efficiency.
The prospect of Musk potentially taking on increased power as part of the Trump administration raises eyebrows throughout Washington. His intentions and surging influences only seem more potent now after pairing his expansive vision with the power dynamics of the presidency. Overall, Musk stands to capitalize immensely should Trump cement his position because of their previously mutually beneficial exchange, where privileges may intersect with fiscal decisions and governance.
