Premeditated, why did Musk go all in on Trump?

Original Title: 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
Author: Jenn Brice, FORTUNE
Translation: zhouzhou, BlockBeats

Editor’s Note: With Trump returning to the White House, Musk has become the "Ma Baoguo" of the situation, as people 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 relaxation, benefiting Musk's companies. SpaceX and Starlink are expected to face reduced regulatory pressure and secure more government contracts; Tesla may also gain support regarding 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 sectors and drive business growth.

Below is the original content (rearranged for readability):

In his national address on election night, Trump not only confirmed that he was one of the biggest winners of the evening but also made Elon Musk the focus. In this disorganized victory speech, Trump spent a significant amount of time thanking Musk. Recently, Musk has invested over $130 million as well as considerable time and tweets supporting conservative politics, and Trump particularly praised Musk's rocket company SpaceX and its Starlink internet satellites—two business sectors with significant government contract potential.

"We must protect these super geniuses," the president-elect 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 opposing government interference, and whenever faced with fines or penalties, he always points out that it is government overreach. Therefore, it is not surprising that he has allied with Trump, who promises to relax regulations.

In addition to the potential reduction in government regulation, 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 received at least $15.4 billion in government contracts. According to Reuters, Musk's colleagues and government officials indicate that the billionaire's support for Trump is also aimed at better protecting his companies from regulation and ensuring government subsidies.

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

SpaceX and Starlink

SpaceX has a tense relationship with the Federal Aviation Administration (FAA). In September, Musk called for FAA Administrator Michael Whitaker to resign after SpaceX was fined $630,000 for rocket launch violations. Musk stated that he hopes to establish a "Department of Government Efficiency" (abbreviated as DOGE) under the Trump administration, with one of its tasks being to ease 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 has referred to the FCC's withdrawal of an $885 million subsidy for Starlink in 2022 as "regulatory harassment." Trump has also proposed using Starlink's satellite services to provide internet connectivity to remote areas, which could bring financial benefits to Starlink and is part of the government's future $42 billion broadband funding plan.

X

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

xAI

Musk's generative AI startup xAI has developed a chatbot competing with large language models like OpenAI's ChatGPT, so he is particularly attentive to any regulatory policies that could affect AI development.

So far, discussions about comprehensive regulation of AI companies at the federal level have not materialized. However, Musk can still influence policy by suggesting alternatives to Trump that would relax regulations, replacing 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 sought to constrain large AI companies but faced strong opposition from venture capital firms and large developers, who argued that the potential risks of AI cannot be ignored.

Tesla

Federal automotive safety regulators launched an investigation into Tesla's full self-driving mode last month after a Tesla driver struck and killed a pedestrian while using the mode.

Musk may leverage his influence to affect federal regulations on autonomous vehicles, particularly federal automotive safety enforcement. He is especially focused on this area as Tesla aims to launch autonomous taxis to compete with more established rivals 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 raise tariffs on competitive countries like China could have complex implications for Musk. Limiting the import of cheap electric vehicles might reduce competition for Tesla in the U.S. market, but escalating the trade war could also impact the entire tech industry, especially those reliant on chip supply chains from China and Taiwan.

Regardless, investors are optimistic about this prospect: after Trump's victory speech, Tesla's stock price surged by 15%.

The Boring Company

Musk's vision for high-speed transportation, such as The Boring Company's "Loop" project, has faced setbacks due to regulatory and technical constraints. The company is currently promoting a lower-tech version that transports passengers in Tesla cars through underground tunnels near the Las Vegas Convention Center. This project is also under investigation by the Occupational Safety and Health Administration (OSHA) regarding workplace safety.

Despite high costs, complex infrastructure, and insufficient safety conditions, Musk attributes the failure of other cities to successfully launch tunnel projects to excessive government regulation. 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 Food and Drug Administration (FDA) for its lengthy approval processes for new drugs and medical devices. At a rally in Pennsylvania, he stated, "Excessive regulation costs lives."

Although the cancer drug he mentioned has actually been approved, Musk still believes that relaxing regulations could expedite Neuralink's approval process. Currently, Neuralink has implanted FDA-approved brain-machine interface devices in two patients.