Donald Trump’s election-night tackle to the nation confirmed that one of many night’s greatest winners—along with himself—was Elon Musk.
Trump spent a hefty portion of his scattered victory speech thanking Musk, who has lately spent greater than $130 million and a variety of time and tweets to the conservative political trigger. Specifically, Trump had excessive reward for Musk’s rocket firm SpaceX and its Starlink web satellites—two enterprise items ripe for presidency contracts.
“We have to protect our super geniuses,” the president-elect mentioned. On the marketing campaign path, Trump mentioned he’ll create a brand new “government efficiency” place in his administration for the tech CEO, at Musk’s request.
Musk is thought to quote authorities overreach within the face of any tremendous or penalty. So it’s unsurprising that the multibillionaire has tied himself to Trump, who has promised to roll again rules.
On prime of probably looser authorities oversight, Musk’s alliance with Trump could assist him safe federal contracts. The New York Occasions reviews that SpaceX and Tesla have already racked up no less than $15.4 billion in authorities contracts over the previous decade. Musk’s colleagues and authorities officers advised Reuters the billionaire’s funding in Trump is a part of a broader effort to defend his firms from regulation and safe entry to authorities subsidies.
Beneath are simply among the methods every of Musk’s companies stands to achieve from Trump retaking the White Home.
SpaceX and Starlink
Tensions between the Federal Aviation Administration and SpaceX are excessive. In September, Musk known as for the resignation of FAA Chief Michael Whitaker over $630,000 in fines levied in opposition to SpaceX for violations involving its rocket launches. Musk has mentioned his plans for a division of presidency effectivity (DOGE) beneath Trump contains loosening rules on his rocket launches.
In the meantime, Starlink, the satellite tv for pc web unit of SpaceX, may additionally get a friendlier reception from the Federal Communications Fee beneath Trump, assuming the president faucets Republican commissioner Brendan Carr to interchange present chair Jessica Rosenworcel. Carr has known as the FCC’s choice in 2022 to revoke $885 million in subsidies to Starlink “regulatory harassment.” And Trump himself has recommended utilizing Starlink’s satellite tv for pc providers for rural connectivity—a possible monetary boon to Starlink—as a part of the federal government $42 billion plan for future broadband funding.
X
Following Musk’s $44 billion takeover of what was as soon as Twitter, the Federal Commerce Fee investigated whether or not X and its new proprietor had been in violation of an present FTC knowledge privateness settlement with the corporate. After his acquisition of the service, now often called X, Musk lower its privateness and safety compliance groups that had been supposed to maintain the corporate within the FTC’s good graces. Final week, Musk promised some payback by saying that FTC Chair Lina Khan could be fired beneath a Trump administration. By no means thoughts the truth that Trump’s vice chairman, JD Vance, has praised Khan for being robust on monopolies.
xAI
Musk’s generative AI startup, xAI, has a chatbot that competes in opposition to OpenAI’s ChatGPT and different large-language fashions. Musk is subsequently very enthusiastic about any regulation that impacts AI.
Thus far, federal talks about passing a broad regulation of AI firms haven’t materialized. However Musk may nonetheless intervene by advising Trump on a lighter-touch substitute to the Biden administration’s AI govt order, a framework for AI use and growth that put some restrictions on AI firms.
In California, Musk backed controversial security laws, SB 1047, that may have reined in giant AI firms. That laws was fiercely opposed by enterprise capitalists and large-scale builders, citing the doubtless catastrophic dangers of synthetic intelligence.
Tesla
Federal auto security regulators final month hit Tesla with a brand new investigation of its Full Self-Driving mode, which partially automates human driving, after a Tesla driver fatally struck a pedestrian. Musk may use his affect to form federal auto security enforcement or the federal regulation of self-driving automobiles or robotaxis. It’s an space that he cares deeply about, as Tesla hopes to introduce robotaxis to tackle more-established rivals like Alphabet’s Waymo and even GM’s Cruise.
Musk may additionally attempt to foyer Trump about his opposition to the Biden administration’s electrical automobile tax credit, which incentivize EV purchases.
Trump’s promise to lift Biden’s present tariffs on China and different competing nations is also difficult for Musk. Curbing the import of cheaper EVs would remove a few of Tesla’s competitors within the U.S., however escalating a commerce struggle would additionally damage tech broadly by disrupting reliance on China and Taiwan for chips.
Regardless of the case, buyers are hopeful: Tesla inventory spiked 15% following Trump’s victory speech.
Boring Firm
Musk’s visions for high-speed transit like Boring Firm’s Hyperloop undertaking are stifled by regulation and the constraints of present know-how. As an alternative, it has targeted on a decrease tech model: Teslas ferrying passengers underground close to the Las Vegas conference heart. The undertaking has confronted an OSHA investigation over office security. However regardless of the excessive prices, difficult infrastructure, and unsafe circumstances, Musk has insisted authorities regulation is responsible for tunnel tasks in another U.S. cities falling via. In any case, having allies within the U.S. authorities may make it simpler for Boring win main infrastructure tasks.
Neuralink
As founding father of mind chip firm Neuralink, Musk has criticized prolonged approval processes by the Meals and Drug Administration for brand spanking new medicine and medical units, claiming at one Pennsylvania rally that “overregulation kills people.” It was later reported that the most cancers drug Musk was referencing was, in reality, authorized. Nonetheless, Musk’s imaginative and prescient for widespread “government efficiency” would possible goal the FDA, too, and probably get his Neuralink speedier approvals. Thus far, Neuralink has implanted mind units in two sufferers with FDA approval.
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