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How Elon Musk’s $130 million investment in Trump's victory could reap a huge pay off for Tesla and the rest of his business empire

Nov 07, 2024 - fortune.com
Elon Musk emerged as a significant winner from Donald Trump's election victory, with the president-elect praising Musk's SpaceX and Starlink ventures and promising to create a "government efficiency" role for Musk in his administration. This alliance could potentially lead to looser government oversight and increased federal contracts for Musk's businesses, which have already secured $15.4 billion in government contracts over the past decade. Musk's investment in Trump is reportedly part of a broader strategy to protect his companies from regulation and secure government subsidies.

Each of Musk's businesses, including SpaceX, Starlink, X, xAI, Tesla, Boring Company, and Neuralink, could benefit from Trump's presidency. For instance, SpaceX and Starlink could see eased regulations and increased subsidies, while X could benefit from a friendlier FTC. Musk's AI startup, xAI, could also benefit from lighter AI regulations. Tesla could gain from reshaped federal auto safety enforcement and opposition to EV tax credits, while Boring Company and Neuralink could benefit from eased regulations and quicker FDA approvals, respectively.

Key takeaways:

  • Elon Musk's alliance with Donald Trump could potentially help him secure federal contracts and protect his businesses from regulation, as Trump has promised to roll back regulations.
  • Musk's companies SpaceX, Starlink, X, xAI, Tesla, Boring Company, and Neuralink could all benefit from Trump's administration in various ways, from loosening regulations to securing government subsidies and contracts.
  • Musk has spent over $130 million supporting the conservative political cause and has been praised by Trump for his contributions to the tech industry.
  • Despite potential challenges such as trade wars and regulatory scrutiny, investors are hopeful about Musk's businesses under a Trump administration, with Tesla's stock spiking 15% following Trump's victory speech.
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