Elon Musk’s recent support for Donald Trump’s campaign seems strategically aligned with his business interests. Musk has invested over $130 million in pro-Trump initiatives and actively promoted Trump on his platform, X (formerly Twitter).
In an unprecedented move, Musk also offered a $1 million daily giveaway to voters in swing states who endorse his stance on free speech and gun rights.
This partnership promises Musk potential rewards if Trump returns to office, notably through a proposed “Department of Government Efficiency” headed by Musk. This department would conduct a comprehensive audit of federal agencies, which Musk sees as excessive in number, with 428 agencies. The role could potentially grant Musk influence over regulatory agencies like the SEC, which has previously scrutinized Musk’s actions regarding Tesla and Twitter.
Musk’s vision includes a federal approval process for autonomous vehicles, which could significantly benefit Tesla, particularly as he seeks approval for these vehicles in Texas and California. A Trump presidency may also favor SpaceX by securing Department of Defense contracts, ensuring competitive advantages against rivals like Blue Origin.
Despite these possible gains, there are risks. Trump has proposed retracting funds from the Inflation Reduction Act (IRA) — a policy that currently benefits Tesla through tax credits for electric vehicles and solar installations. Moreover, experts like Cary Coglianese and Joan MacLeod Heminway suggest that Musk’s approach could carry regulatory and ethical challenges, including potential conflicts of interest and complex compliance obligations that Musk may find restrictive.
This partnership may allow Musk to push forward his ambitious projects in a friendlier regulatory environment, but it’s uncertain if all his expectations will align with Trump’s agenda, as past supporters have not always received the expected benefits.