Original title: How Elon Musk's $130 million investment in Trump's victory could reap a huge payoff for Tesla and the rest of his business empire

Original author: Jenn Brice, FORTUNE

Original translation by: zhouzhou, BlockBeats

Editor’s note: With Trump returning to the White House, Musk has become a 'Ma Baoguo', and people suddenly realize that Musk wrote in his biography published last year, 'I think having an inclusive and trustworthy digital public space is very important.' He responded, then paused and added, 'Otherwise, how can we help Trump get elected president in 2024?'

Fortune magazine wrote in this article that Trump's presidency could bring about policy loosening, benefiting Musk's companies. SpaceX and Starlink may see reduced regulatory pressure and secure more government contracts; Tesla may also gain support in autonomous driving regulations and electric vehicle tax incentives; The Boring Company and Neuralink could benefit from infrastructure projects and faster approval processes. Musk will leverage his relationship with Trump to influence policies across multiple fields and promote business development.

The following is the original content (for readability, the original content has been edited):

In his national address on election night, Trump not only confirmed himself as one of the biggest winners of the night but also put Elon Musk in the spotlight. During this chaotic victory speech, Trump spent a lot of time thanking Musk. Recently, Musk has invested over $130 million and a significant amount of time and tweets supporting conservative politics, with Trump particularly praising 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 the tech entrepreneur.

Musk is known for opposing government interference, always pointing out that fines or penalties are due to excessive governmental intervention. Therefore, it is not surprising that he aligns with Trump, who promises to loosen regulations.

In addition to potentially reduced government regulations, Musk's alliance with Trump may also help him secure more federal contracts. According to The New York Times, over the past decade, SpaceX and Tesla have secured at least $15.4 billion in government contracts. Reuters reported that Musk's colleagues and government officials indicated that the billionaire's support for Trump was also to better protect his companies from regulation and ensure government subsidies.

Here are some ways Musk's businesses could benefit after Trump's return to the White House:

SpaceX and Starlink

SpaceX has a strained relationship with the Federal Aviation Administration (FAA). In September, Musk called for FAA Administrator Michael Whittaker to resign after SpaceX was fined $630,000 for rocket launch violations. Musk stated he hopes to establish a 'government efficiency department' (abbreviated as DOGE) under the Trump administration, one of whose tasks would be to relax regulations on rocket launches.

Meanwhile, SpaceX's satellite internet business Starlink may also receive better treatment from the Federal Communications Commission (FCC) during Trump's term, especially if Trump appoints Republican Commissioner Brendan Carr to replace current Chair Jessica Rosenworcel. Carr previously labeled the FCC's withdrawal of $885 million in subsidies for Starlink in 2022 as 'regulatory harassment.' Trump also proposed using Starlink's satellite services to provide internet connectivity to remote areas, which could bring financial gains to Starlink and is part of the government's future $42 billion broadband funding plan.

X

After Musk acquired the original Twitter for $44 billion, the Federal Trade Commission (FTC) investigated whether he and X violated existing FTC data privacy agreements. After the acquisition, Musk cut the privacy and security team responsible for ensuring company compliance, raising FTC's concerns. Last week, Musk promised that if the Trump administration took office, he would 'fire' FTC Chair Lina Khan. Although Trump's vice-presidential candidate JD Vance praised Khan for her tough stance on monopolies, Musk seems indifferent to these differences.

xAI

Musk's generative AI startup xAI has developed a chatbot competing with large language models like OpenAI's ChatGPT, making him especially attentive to any regulatory policies that may affect AI development.

So far, no comprehensive federal discussions on regulating AI companies have materialized. However, Musk can still influence policy by suggesting alternative regulatory relaxations to Trump to replace the Biden administration's AI executive order, which imposes certain restrictions on the use and development of AI.

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

Tesla

The federal auto safety regulatory agency launched an investigation last month into Tesla's full self-driving mode after a Tesla driver struck and killed a pedestrian while using the mode.

Musk may use his influence to sway federal regulations on autonomous vehicles, particularly federal auto safety enforcement. He is especially concerned about this area, as Tesla hopes to launch self-driving taxis to challenge more established 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, aimed at encouraging consumers to purchase electric vehicles.

However, Trump's promise to raise tariffs on competing countries like China could have complex effects on Musk. Restricting imports of cheap electric vehicles might reduce Tesla's competition in the U.S. market, but escalating trade wars could also impact the entire tech industry, especially those reliant on chip supply chains from China and Taiwan.

Regardless, investors are excited about this prospect: Tesla's stock soared 15% after Trump's victory speech.

The Boring Company

Musk's vision for high-speed transportation, such as The Boring Company's 'Loop' project, is hindered by regulatory and technological limitations. The company is currently focusing on a lower-tech version, transporting passengers in Tesla cars through underground tunnels near the Las Vegas convention center. The project is also facing an investigation by the Occupational Safety and Health Administration (OSHA) regarding workplace safety.

Despite the high costs, complex infrastructure, and insufficient safety conditions, Musk blamed the government's excessive regulation for other cities' failures to successfully launch tunnel projects. With government allies, The Boring Company may find it easier to win large infrastructure projects.

Neuralink

As the founder of brain-machine interface company Neuralink, Musk has repeatedly criticized the FDA for its lengthy approval processes for new drugs and medical devices. At a rally in Pennsylvania, he stated, 'Excessive regulation costs lives.'

Despite the cancer drugs he mentioned being approved, Musk still believes that loosening regulations could expedite Neuralink's approval process. Currently, Neuralink has implanted FDA-approved brain-machine interface devices in two patients.