What Elon Musk Could Gain from Trump’s 2024 Presidential Victory
Elon Musk's financial and political involvement with former President Donald Trump has raised questions about the intersection of business, politics, and regulatory influence. Musk's $130 million investment in pro-Trump efforts has already paid significant dividends. Following Trump's election victory, Tesla shares surged by 15%, adding about $15 billion to Musk’s net worth. This aligns with Musk’s broader strategy, which includes leveraging his political ties to secure favorable outcomes for his businesses.
In recent months, Musk has turned his backing of Trump into an active campaign role, utilizing his platform X (formerly Twitter) to promote Trump’s candidacy, even spreading misinformation. His support in key swing states, particularly Pennsylvania, was highlighted during Trump’s victory speech, where Musk was thanked for his efforts.
Musk’s connection to Trump is not just about personal wealth; it’s also about the regulatory landscape. Tesla, SpaceX, and his social media platform X are all facing significant government scrutiny and ongoing investigations. A Trump administration could potentially provide Musk with regulatory relief, which could positively impact his companies. Trump has expressed support for reducing regulations, particularly those Musk deems overbearing, such as those from the SEC, EPA, and FAA.
Moreover, Musk’s companies, including SpaceX, have benefited immensely from federal contracts. SpaceX has received over $19 billion in government contracts, including funding from NASA, the U.S. Air Force, and Space Force. Musk’s ventures, such as Tesla’s electric vehicles, also benefit from federal and state regulatory credits, which have contributed significantly to Tesla’s bottom line. However, it's unclear whether a second Trump administration will continue these programs.
Trump's regulatory policies could also help Musk's push for a “federal approval process for autonomous vehicles,” which would shift oversight from state to federal agencies. This would streamline approval for Tesla’s autonomous technology, potentially boosting Musk's efforts in the driverless car market.
Musk’s political influence extends beyond just regulatory matters. His comments at a rally in October 2024 revealed his belief that he could cut $2 trillion from the federal budget, echoing his calls for reducing the size of government and its agencies. This could translate into less oversight on his businesses and more freedom to operate with fewer restrictions.
Musk’s involvement in politics also includes influencing judicial appointments, particularly district attorneys who focus on violent crime. His political activism doesn’t stop at national elections; Musk aims to impact midterms and local elections, potentially shaping policy at various levels of government.
However, Musk’s ties to Trump and his political views have drawn scrutiny, especially regarding Musk’s actions surrounding SpaceX and its use of Starlink technology. Musk’s decision to withhold Starlink services in Ukraine, reportedly at the request of Russian President Vladimir Putin, and his frequent engagement with pro-Kremlin content on X, have sparked concerns. This controversial stance has raised questions about Musk's loyalties and his influence on U.S. foreign policy.
In conclusion, Musk’s financial backing of Trump, combined with his regulatory ambitions and political influence, positions him to gain significantly from a second Trump administration. Whether this influence extends to changes in government oversight of his companies or shaping future policies is yet to be seen, but Musk’s proactive engagement in politics and policy makes it clear that his business decisions are deeply intertwined with the political landscape.
Read More: Zelenskyy Says 'Suicidal' to Offer Putin Concessions on Ukraine
