Original source: zhouzhou, BlockBeats
Reprinted: Koala, Mars Finance
Editor's note: Trump returned to the White House, Musk became "Ma Baoguo", and people were surprised to find that Musk wrote in his biography published last year: "'I think it is important to have an inclusive and trustworthy digital public space.' He answered, then paused and added, 'Otherwise, how can we help Trump get elected president in 2024?'"
Fortune magazine wrote in the article that Trump's coming to power may lead to relaxed policies, which will benefit Musk's companies. SpaceX and Starlink are expected to reduce regulatory pressure and win more government contracts; Tesla may also receive support in terms of autonomous driving regulation 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 fields and promote business development.
The following is the original content (for easier reading and understanding, the original content has been reorganized):
In his national address on election night, Trump not only confirmed himself as one of the night's biggest winners, but he also put Elon Musk in the spotlight. Trump spent a lot of time in his rambling victory speech thanking Musk, who has recently invested more than $130 million and a lot of time and tweets in support of conservative politics, and Trump especially praised Musk's rocket company SpaceX and its Starlink internet satellites - two business units with great potential for government contracts.
“We have to protect these super geniuses,” the president-elect said. During the campaign, Trump also revealed that at Musk’s request, he would create a “government efficiency” position specifically to support the tech entrepreneur.
Musk is well-known for his opposition to government interference, always pointing to government overreach whenever he faces fines or penalties, so it's no surprise that he's aligned himself with Trump, who has pledged to roll back regulations.
In addition to possible reduced government regulation, Musk's alliance with Trump could help him secure more federal contracts. According to the New York Times, SpaceX and Tesla have received at least $15.4 billion in government contracts over the past decade. Musk's colleagues and government officials said the billionaire's support for Trump is also intended to better protect his company from regulation and secure government subsidies, according to Reuters.
Here are some of the ways Musk's various businesses could benefit from Trump's return to the White House:
SpaceX and Starlink
SpaceX has a strained relationship with the Federal Aviation Administration (FAA), and in September Musk asked FAA Administrator Michael Whitaker to resign after SpaceX was fined $630,000 for rocket launch violations. Musk said he hopes to set up a "Department of Government Efficiency" (DOGE) under the Trump administration, one of the tasks of which will 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 assuming Trump appoints Republican Commissioner Brendan Carr to replace current Chairwoman Jessica Rosenworser. Carr has called the FCC's revocation of an $885 million subsidy to Starlink in 2022 "regulatory harassment." Trump has also proposed using Starlink's satellite service to provide internet connectivity to remote areas, which would potentially bring financial benefits 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 the existing FTC data privacy agreement. After the acquisition, Musk cut the privacy and security team responsible for ensuring the company's compliance, which attracted the attention of the FTC. Last week, Musk promised to "fire" FTC Chairman Lina Khan if the Trump administration came to power. Although Trump's vice presidential candidate JD Vance praised Lina Khan for being tough in fighting monopolies, Musk did not seem to care about these differences.
xAI
Musk, whose generative AI startup xAI has developed a chatbot that competes with large language models like OpenAI’s ChatGPT, is particularly concerned about any regulatory policies that could affect the development of AI.
So far, federal discussions about comprehensive regulation of AI companies have not taken place. But Musk could still influence policy by suggesting to Trump a deregulatory alternative to the Biden administration's AI executive order, which sets some limits on the use and development of AI.
In California, Musk supported the controversial safety bill SB 1047, which attempted to constrain large AI companies, but was strongly opposed by venture capital firms and large-scale developers, who believed that the huge potential risks of AI could not be ignored.
Tesla
Federal auto safety regulators last month launched an investigation into Tesla's Full Self-Driving mode after a Tesla driver struck and killed a pedestrian while using that mode.
Musk is likely to use his influence to shape federal regulation of self-driving cars, especially federal auto safety enforcement, an area of particular interest to him as Tesla seeks to launch self-driving taxis to challenge more established rivals such as Alphabet's Waymo and GM's Cruise.
Musk may also pressure Trump to oppose the Biden administration's electric vehicle tax credit policy, which is designed to encourage consumers to buy electric vehicles.
However, Trump's promise to raise Biden's tariffs on competing countries such as China could have complicated consequences for Musk. Restricting imports of cheap electric vehicles could reduce competition for Tesla in the U.S. market, but an escalating trade war could also affect the entire tech industry, especially the chip supply chain that relies on China and Taiwan.
Regardless, investors are excited about the prospect: Tesla shares surged 15% after Trump’s victory speech.
The Boring Company
Musk's visions for high-speed transportation, such as the Boring Company's "Hyperloop" project, have been hampered by regulatory and technological limitations. The company is currently focusing on a lower-tech version that would transport passengers in Tesla cars in an underground tunnel near the Las Vegas Convention Center. The project is also facing an Occupational Safety and Health Administration (OSHA) investigation into its workplace safety.
Musk has blamed excessive government regulation for other cities’ failure to successfully pursue tunnel projects, despite the high costs, complex infrastructure, and unsafe conditions. With a government ally, the Boring Company may have an easier time winning large infrastructure projects.
Neuralink
Musk, the founder of Neuralink, a brain-computer interface company, has repeatedly criticized the Food and Drug Administration (FDA) for its lengthy approval process for new drugs and medical devices. At a rally in Pennsylvania, he said that "overregulation kills people."
Although the cancer drug he mentioned is already approved, Musk believes that loosening regulations will speed up the approval process for Neuralink, which has already implanted FDA-approved brain-computer interface devices in two patients.