How Trump's US election win could benefit Elon Musk's companies
Donald Trump's victory in the 2024 US presidential election is poised to significantly benefit Elon Musk and his various enterprises, including Tesla, SpaceX, and Neuralink. Musk's extensive financial support for Trump's campaign, exceeding $119 million, has positioned him as a key ally in the new administration. This relationship is expected to yield favorable conditions for Musk's businesses through potential government contracts and reduced regulatory burdens.
Musk's strategy to shield companies from regulation
Musk's political maneuvering is part of a broader strategy to shield his companies from regulation/enforcement, and bolster their government support. This is according to Reuters's interviews with six sources at Musk's companies familiar with his political and business activities, and two government officials who have dealt extensively with these firms. The sources provide a unique insight into the strategies employed at Musk's companies to fully capitalize on his growing relationship with Trump.
Musk's businesses heavily rely on government policies
Musk's varied business interests, from Tesla electric vehicles to SpaceX rockets and Neuralink brain chips, rely heavily on government regulation, subsidies or policy. A former senior SpaceX official, who wished to remain anonymous, said "Elon Musk sees all regulations as getting in the way of his businesses and innovation." The official added Musk sees the Trump administration as a way to remove as many regulations as possible so he can run his businesses at his own pace.
Musk's political involvement could influence government policy
Musk's growing political involvement could place his industrial empire in a Gilded Age-like situation, where industry tycoons like JP Morgan and John D. Rockefeller had a huge say in government policy impacting their businesses and wealth. This rising power has thrilled his supporters who view government as an impediment to his high-tech operations. SpaceX investor and venture capitalist Shervin Pishevar thinks lesser regulation would speed up SpaceX's Mars mission.
Musk's political rise and impact on auto policy
Musk's political ascension comes after perceived slights under the Biden administration that hastened his embrace of Trump's right-wing populism. Tesla's future could be heavily shaped by Trump's attitude toward a wide array of subsidies, policies, and regulatory schemes for electric and autonomous vehicles. Despite the Republican party's historical dismissal of EVs, Musk could now shield these pro-EV policies even as Trump ridiculed Biden's EV policy on the campaign trail.
Musk's goals for Tesla under Trump administration
For Tesla, Musk hopes to convince the US National Highway Traffic Safety Administration (NHTSA), its chief federal safety regulator, to avoid possible enforcement actions over the safety of Tesla's existing driver-assistance systems, "Autopilot" and "Full Self-Driving." A source familiar with the matter told Reuters that Musk's "primary focus over the next four years," would be on "de-enforcement." Musk could also push for favorable regulation of autonomous vehicles and robotaxis Tesla plans.
