Deepshikha Maan, Jadetimes Staff
D. Maan is a Jadetimes news reporter covering Asia
What Elon Musk Could Gain from Trump's Presidency
A Strong Political Alliance
Elon Musk’s support for Donald Trump’s presidential bid could pay off in significant ways, especially with Trump’s return to the White House. Musk has publicly backed Trump, praising his policies and pushing for his re election with financial support and a strategic role in Trump’s administration. Musk has also voiced concerns over the Biden administration’s policies, positioning himself as a crucial backer of Trump's second term.
Influence Through the "Department of Government Efficiency
Trump has hinted at inviting Musk into his administration to tackle government waste, with Musk reportedly referring to the initiative as the “Department of Government Efficiency,” inspired by the cryptocurrency DOGE. This close relationship could benefit Musk as he aims to streamline government spending and foster his own business interests.
SpaceX Expansion
As the head of SpaceX, Musk stands to benefit from a president who could further cement government contracts for the company. SpaceX already dominates satellite launches, and with Trump’s administration potentially expanding investment in defense related projects, Musk's space ventures could see even greater profits. The company is also eyeing government contracts for spy satellites, an area set for major investment from the Pentagon.
Boost to Tesla and Corporate Interests
Under Trump, Tesla may see fewer regulations and a reduction in corporate taxes, both of which would directly benefit Musk’s electric car company. Following Trump’s victory, Tesla’s stock price saw a notable jump, signaling investor confidence in the future of Tesla under a potentially deregulated environment. Musk’s hope is that Trump will maintain his promises to lower corporate taxes, which could also result in further financial gains for his ventures.
Legal and Labor Considerations
While Musk’s support for Trump could help reduce regulations, it may also invite legal challenges. Tesla’s self driving technology is under scrutiny by US safety regulators, and Musk faces ongoing labor disputes, including accusations of blocking union efforts. Despite these controversies, Musk’s alignment with Trump on regulatory issues suggests his businesses may benefit from a more favorable stance on such matters.
In summary, a second term for Donald Trump could offer substantial advantages to Elon Musk, especially in government contracts, tax policies, and regulatory relief, further strengthening Musk’s influence over his key companies.
