With premeditation, why did Musk go all in for Trump?

Editor’s note: Trump’s return to the White House, Musk has become a “horse protector”, and people are shocked to find that Musk wrote in his biography published last year, “‘I think it’s important to have an inclusive and trustworthy digital public space.’” He replied, then paused before adding, “How else are we going to help Trump get elected president in 2024?” 」

Fortune magazine wrote in this article that Trump’s coming to power may bring about loose policies that benefit Musk’s companies. SpaceX and Starlink are expected to reduce regulatory pressure and strive for more government contracts; TSL may also receive support in autonomous driving regulations and electric vehicle tax incentives; Boring Company and Neuralink may benefit from infrastructure projects and faster approval processes. Musk will use his relationship with Trump to influence policies in multiple sectors and promote business development.

The following is the original content (for ease of reading comprehension, the original content has been edited):

Trump not only confirmed himself as one of the biggest winners of the night in his national speech on election night, but also put Elon Musk in the spotlight. In this chaotic victory speech, Trump spent a lot of time thanking Musk. Recently, Musk has invested over $130 million as well as a significant amount of time and tweets in support of conservative politics, and Trump especially praised Musk’s rocket company SpaceX and its Starlink internet satellite - two business sectors with great potential for government contracts.

“We must protect these super geniuses,” the elected president said. During the campaign, Trump also revealed that, at Musk’s request, he would establish a “government efficiency” position specifically to support this tech entrepreneur.

Musk is known for his opposition to government intervention, and whenever faced with fines or penalties, he always points out that this is government overreach. Therefore, his alliance with Trump, who promised to relax regulations, is not surprising.

In addition to the possible reduction of government regulation, Musk’s alliance with Trump could also help him win more federal contracts. According to The New York Times, SpaceX and TSL have received at least $15.4 billion in government contracts over the past decade. According to Reuters, Musk’s colleagues and government officials said that the billionaire’s support for Trump is also to better protect his company from regulation and ensure government subsidies.

Here are some ways in which various businesses under Musk’s control may benefit after Trump returns to the White House:

SpaceX and Starlink

SpaceX has a tense relationship with the Federal Aviation Administration (FAA). In September, Musk requested the resignation of FAA Administrator Michael Huerta, as SpaceX was fined $630,000 for violating rocket launch regulations. Musk stated that he hopes to establish a ‘Government Efficiency Department’ (abbreviated as DOGE) under the Trump administration, with one of its tasks being the relaxation of regulations on rocket launches.

At the same time, SpaceX’s satellite internet business, Starlink, may also be treated better by the Federal Communications Commission (FCC) during Trump’s presidency, especially assuming Trump appoints Republican Commissioner Brendan Carr to replace incumbent Chairwoman Jessica Rosenworther. Carl had called the FCC’s withdrawal of $885 million in subsidies to Starlink in 2022 “regulatory harassment.” Trump has also proposed using Starlink’s satellite services to provide network connectivity to remote areas, which could generate financial benefits for Starlink and is part of the administration’s future $42 billion broadband funding plan.

X

After Musk’s $44 billion acquisition of the original Twitter, the Federal Trade Commission (FTC) investigated whether he and X violated the existing FTC data privacy protocol. Following the acquisition, Musk reduced the privacy and security team responsible for ensuring the company’s Compliance, triggering follow-up from the FTC. Last week, Musk promised to ‘fire’ FTC Chairman Lina Khan if the Trump administration took office. Despite Trump’s vice-presidential candidate JD Vance praising Lina Khan for her tough stance on combating monopolies, Musk seems indifferent to these differences.

xAI

Elon Musk’s generative AI startup xAI has developed a chatbot that competes with large language models like OpenAI’s ChatGPT, so he is particularly concerned about any regulatory policies that could affect AI development.

So far, federal discussions on comprehensive regulation of AI companies have not yet taken place. However, Musk can still influence policy by suggesting alternative relaxation of regulations to Trump, instead of Biden administration’s AI executive orders, which set some restrictions on the use and development of AI.

In California, Musk once supported the controversial safety bill SB 1047, which sought to constrain large AI companies, but faced strong opposition from venture capital firms and large-scale developers, who believe that the potential huge risks of AI cannot be ignored.

TSL

The Federal Automotive Safety Regulatory Agency launched an investigation into TSL’s fully automatic driving mode last month after a TSL driver killed a pedestrian while using the mode.

Musk may use his influence to influence federal regulation of autonomous vehicles, especially federal automotive safety enforcement. He is particularly focused on this area because TSL hopes to launch autonomous taxis to challenge more mature competitors like Alphabet’s Waymo and General Motors’ Cruise.

Musk may also pressure Trump to oppose the Biden administration’s electric vehicle tax credit policy, which aims to encourage consumers to purchase electric vehicles.

However, Trump’s promise to increase tariffs on competitive countries such as China may have a complex impact on Musk. Restricting the import of cheap electric vehicles may reduce TSL’s competition in the US market, but escalating trade wars may also affect the entire tech industry, especially the chip Supply Chain that relies on China and Taiwan.

Regardless, investors are hopeful about the prospect: after Trump’s victory speech, TSL’s stock price soared 15%.

The Boring Company

Elon Musk’s vision for high-speed transportation, such as the Boring Company’s ‘Loop’ project, has been hindered by regulatory and technological constraints. The company is currently focusing on a less advanced version, using TSL vehicles to transport passengers in underground tunnels near the Las Vegas Convention Center. The project also faces an investigation by the Occupational Safety and Health Administration (OSHA) regarding workplace safety.

Despite the high cost, complex infrastructure, and unsafe conditions, Musk still attributes the failure of tunnel projects in other cities to excessive government regulation. With government allies, boring companies may find it easier to win large infrastructure projects.

Neuralink

As the founder of Neuralink, a brain-computer interface company, Musk has repeatedly criticized the Food and Drug Administration (FDA) for its overly lengthy approval process for new drugs and medical devices. He said at a meeting in Pennsylvania, ‘Excessive regulation is harming lives.’

Despite the fact that the cancer drugs he mentioned have actually been approved, Musk still believes that loosening regulations can expedite the approval process for Neuralink. Currently, Neuralink has implanted FDA-approved brain-machine interface devices in two patients.

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