Donald Trump’s election-night tackle to the nation confirmed that one of many night’s greatest winners—along with himself—was Elon Musk.
Trump spent a hefty portion of his scattered victory speech thanking Musk, who has lately spent greater than $130 million and a number of time and tweets to the conservative political trigger. Particularly, Trump had excessive reward for Musk’s rocket firm SpaceX and its Starlink web satellites—two enterprise items ripe for presidency contracts.
“We have to protect our super geniuses,” the president-elect mentioned. On the marketing campaign path, Trump mentioned he’ll create a brand new “government efficiency” place in his administration for the tech CEO, at Musk’s request.
Musk is thought to quote authorities overreach within the face of any tremendous or penalty. So it’s unsurprising that the multibillionaire has tied himself to Trump, who has promised to roll again rules.
On prime of doubtless looser authorities oversight, Musk’s alliance with Trump might assist him safe federal contracts. The New York Occasions studies that SpaceX and Tesla have already racked up not less than $15.4 billion in authorities contracts over the previous decade. Musk’s colleagues and authorities officers instructed Reuters the billionaire’s funding in Trump is a part of a broader effort to protect his corporations from regulation and safe entry to authorities subsidies.
Beneath are simply among the methods every of Musk’s companies stands to realize from Trump retaking the White Home.
SpaceX and Starlink
Tensions between the Federal Aviation Administration and SpaceX are excessive. In September, Musk referred to as for the resignation of FAA Chief Michael Whitaker over $630,000 in fines levied in opposition to SpaceX for violations involving its rocket launches. Musk has mentioned his plans for a division of presidency effectivity (DOGE) below Trump consists of loosening rules on his rocket launches.
In the meantime, Starlink, the satellite tv for pc web unit of SpaceX, might additionally get a friendlier reception from the Federal Communications Fee below Trump, assuming the president faucets Republican commissioner Brendan Carr to exchange present chair Jessica Rosenworcel. Carr has referred to as the FCC’s determination in 2022 to revoke $885 million in subsidies to Starlink “regulatory harassment.” And Trump himself has instructed utilizing Starlink’s satellite tv for pc providers for rural connectivity—a possible monetary boon to Starlink—as a part of the federal government $42 billion plan for future broadband funding.
X
Following Musk’s $44 billion takeover of what was as soon as Twitter, the Federal Commerce Fee investigated whether or not X and its new proprietor have been in violation of an present FTC knowledge privateness settlement with the corporate. After his acquisition of the service, now generally known as X, Musk lower its privateness and safety compliance groups that have been supposed to maintain the corporate within the FTC’s good graces. Final week, Musk promised some payback by saying that FTC Chair Lina Khan can be fired below a Trump administration. By no means thoughts the truth that Trump’s vice chairman, JD Vance, has praised Khan for being robust on monopolies.
xAI
Musk’s generative AI startup, xAI, has a chatbot that competes in opposition to OpenAI’s ChatGPT and different large-language fashions. Musk is due to this fact very thinking about any regulation that impacts AI.
Up to now, federal talks about passing a broad regulation of AI corporations haven’t materialized. However Musk might nonetheless intervene by advising Trump on a lighter-touch alternative to the Biden administration’s AI govt order, a framework for AI use and improvement that put some restrictions on AI corporations.
In California, Musk backed controversial security laws, SB 1047, that might have reined in massive AI corporations. That laws was fiercely opposed by enterprise capitalists and large-scale builders, citing the possibly catastrophic dangers of synthetic intelligence.
Tesla
Federal auto security regulators final month hit Tesla with a brand new investigation of its Full Self-Driving mode, which partially automates human driving, after a Tesla driver fatally struck a pedestrian. Musk might use his affect to form federal auto security enforcement or the federal regulation of self-driving automobiles or robotaxis. It’s an space that he cares deeply about, as Tesla hopes to introduce robotaxis to tackle more-established rivals like Alphabet’s Waymo and even GM’s Cruise.
Musk might additionally attempt to foyer Trump about his opposition to the Biden administration’s electrical car tax credit, which incentivize EV purchases.
Trump’s promise to lift Biden’s present tariffs on China and different competing nations may be difficult for Musk. Curbing the import of cheaper EVs would eradicate a few of Tesla’s competitors within the U.S., however escalating a commerce struggle would additionally damage tech broadly by disrupting reliance on China and Taiwan for chips.
Regardless of the case, traders are hopeful: Tesla inventory spiked 15% following Trump’s victory speech.
Boring Firm
Musk’s visions for high-speed transit like Boring Firm’s Hyperloop challenge are stifled by regulation and the constraints of present know-how. As an alternative, it has centered on a decrease tech model: Teslas ferrying passengers underground close to the Las Vegas conference heart. The challenge has confronted an OSHA investigation over office security. However regardless of the excessive prices, difficult infrastructure, and unsafe situations, Musk has insisted authorities regulation is responsible for tunnel initiatives in another U.S. cities falling by. In any case, having allies within the U.S. authorities might make it simpler for Boring win main infrastructure initiatives.
Neuralink
As founding father of mind chip firm Neuralink, Musk has criticized prolonged approval processes by the Meals and Drug Administration for brand new medicine and medical units, claiming at one Pennsylvania rally that “overregulation kills people.” It was later reported that the most cancers drug Musk was referencing was, actually, permitted. Nonetheless, Musk’s imaginative and prescient for widespread “government efficiency” would seemingly goal the FDA, too, and doubtlessly get his Neuralink speedier approvals. Up to now, Neuralink has implanted mind units in two sufferers with FDA approval.
A e-newsletter for the boldest, brightest leaders:
CEO Day by day is your weekday morning file on the information, traits, and chatter enterprise leaders have to know.
Enroll right here.
