 "Musk’s vision for a Department of Government Efficiency (DOGE) under Trump could involve loosening these types of restrictions, giving his space enterprise a significant lift. Image Credit: AFP")
While Donald Trump’s victory speech highlighted his triumphs, the real star of the night was Elon Musk. Trump devoted a sizeable chunk of his rather disjointed address to praising the tech billionaire, who has made hefty contributions to conservative causes, spending over $130 million in support.
Musk’s efforts have not gone unnoticed, as Trump had warm words for Musk’s ventures, specifically his space exploration company SpaceX and satellite internet service, Starlink—both poised for lucrative government contracts. Trump even hinted at appointing Musk to a newly created role for streamlining government efficiency, something Musk seems quite interested in.
Musk, a long-time critic of government regulation, appears to have found a natural ally in Trump. The tech mogul has often butted heads with authorities whenever his businesses have been hit with fines or penalties. It’s no surprise, then, that he’s thrown his support behind Trump, who has pledged to roll back regulations.
This partnership isn’t just about cutting red tape; it’s a strategic move to help Musk’s companies secure more federal contracts. Reports suggest Tesla and SpaceX have already collected $15.4 billion in government contracts over the past decade, and insiders believe Musk is hoping for even more financial support and regulatory leniency.
SpaceX & Starlink
SpaceX’s relationship with the Federal Aviation Administration (FAA) has been rocky, with Musk openly criticising the agency. The FAA recently fined SpaceX $630,000 for violations involving rocket launches, and Musk responded by demanding the resignation of FAA Chief Michael Whitaker.
Impact Shorts
View AllMusk’s vision for a Department of Government Efficiency (DOGE) under Trump could involve loosening these types of restrictions, giving his space enterprise a significant lift.
Starlink, SpaceX’s satellite internet service, stands to benefit, too. If Trump appoints Republican commissioner Brendan Carr as head of the Federal Communications Commission (FCC), policies might become more favourable.
Carr previously criticised the FCC’s decision to revoke $885 million in subsidies for Starlink, calling it regulatory overreach. Even Trump has floated using Starlink’s satellites to improve rural internet access, a move that could direct part of the government’s $42 billion broadband budget into Starlink’s hands.
Social Media and AI Regulation
Musk’s acquisition of Twitter, now X, has been anything but smooth. The Federal Trade Commission (FTC) launched an investigation to see if Musk’s staffing cuts violated an existing data privacy agreement.
Musk didn’t take this lightly, threatening that FTC Chair Lina Khan would be dismissed under a Trump administration. This feud gets more interesting when you consider Trump’s vice president, JD Vance, has praised Khan’s tough stance on monopolies. Musk clearly views a potential Trump administration as a way to get regulators off his back.
His AI company, xAI, is also facing regulatory scrutiny. Musk’s chatbot competes with OpenAI’s ChatGPT, making AI regulation a major concern. While federal talks on AI regulation haven’t led to action, Musk could influence Trump to adopt a more lenient approach.
In California, he’s opposed safety measures for AI, backing legislation that alarmed tech developers and venture capitalists. A Trump administration could provide Musk’s AI ambitions with the regulatory freedom he desires.
Tesla, Boring Company, and Neuralink
Tesla has its own regulatory battles, particularly over its Full Self-Driving feature. Federal authorities are investigating after a pedestrian was fatally struck. Musk could use his influence to change safety laws, which is crucial as Tesla moves forward with its robotaxi plans. The company might also lobby Trump regarding the Biden administration’s EV tax credits, which boost Tesla sales.
Though Trump has been critical of these credits, Musk could try to shift his stance.
Trade policy could also impact Tesla. Trump’s promise to raise tariffs on China might cut down competition from cheaper Chinese EVs but could disrupt tech supply chains, which heavily rely on Chinese and Taiwanese chip manufacturers.
Musk’s Boring Company could gain from Trump’s return, too. Known for its ambitious yet impractical underground transit projects, the company has struggled to expand beyond Las Vegas, citing government red tape. Friendly ties in Washington could change that, opening doors for more infrastructure opportunities.
Neuralink, Musk’s brain chip venture, also stands to benefit. Musk has criticised the FDA’s lengthy approval processes, and a Trump administration could fast-track these approvals, making his vision for advanced medical devices a reality.
Investor optimism and the road ahead
Musk’s political manoeuvring hasn’t gone unnoticed by investors. Tesla stock jumped 15% after Trump’s speech, a sign that the markets are banking on Musk’s alliance with Trump to yield significant rewards. From space exploration and electric cars to underground transit and brain-computer interfaces, Musk has a lot riding on this partnership. As Trump’s administration takes shape, it will be interesting to see how these plans unfold and what it means for Musk’s empire.