After spending $130 million and going all in on Trump, is Musk a winner?

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

Original article by Jenn Brice, FORTUNE

Original translation: zhouzhou, BlockBeats

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 is very important.' He replied, then paused and added, 'Otherwise how can we help Trump get elected president in 2024?'"

Fortune magazine wrote in the article that Trump's presidency may lead to loose policies, which will benefit Musk's companies. SpaceX and Starlink are expected to reduce regulatory pressure and win more government contracts; Tesla will have a better future in autonomous driving regulation and Electric vehicle tax incentives may also receive support, while the 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 speech to the nation on election night, Trump not only confirmed himself as one of the biggest winners of the night, but also put Elon Musk in the spotlight. In this rambling victory speech, Trump spent a lot of time thanking Musk has recently invested more than $130 million and a lot of time and tweets in support of conservative politics, and Trump has particularly praised Musk's rocket company SpaceX and its Starlink internet satellites - two companies with great potential for government contracts. business departments.

“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 potentially less government regulation, Musk's alliance with Trump could help him win 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 about better protecting his company from regulation and securing government subsidies, Reuters reported.

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). 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 The Putin government established a "Department of Government Efficiency" (DOGE), one of whose tasks is to relax regulations on rocket launches.

Meanwhile, SpaceX's satellite internet business, Starlink, might also get better treatment from the FCC under Trump, especially assuming Trump appoints Republican Commissioner Brendan Carr to replace current Chairman Jesse Karl Rosenworther. Karl once called the FCC's withdrawal of $885 million in subsidies for Starlink in 2022 "regulatory harassment." Trump also proposed using Starlink's satellite service to provide Internet connectivity to remote areas, which could Starlink brings financial benefits and is part of the government's future $42 billion broadband funding plan.

X

After Musk bought 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 Chairwoman Lina Khan if the Trump administration came to power. Although Trump's vice presidential candidate JD Vance praised Lina Khan for her Musk has taken a tough stance in combating monopolies, and he doesn't seem to care about the differences.

xA

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 off. But Musk could still influence policy by suggesting to Trump an alternative to deregulation to replace the Biden administration’s executive order on AI. Use and development set some limits.

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 influence 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 Alphabet's Waymo. and more established competitors like 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 tariffs on rival countries such as China, which Biden has promised to do, could have complicated consequences for Musk. Restricting imports of cheap electric vehicles could reduce Tesla's competition in the U.S. market, but an escalation in the trade war could also It affects the entire technology 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 vision for high-speed transportation, such as the Boring Company's "Hyperloop" project, has been hampered by regulatory and technical limitations. The company is currently focusing on a lower-tech version that will be built in an underground tunnel near the Las Vegas Convention Center. The project, which uses Tesla cars to transport passengers, is also facing an investigation by the Occupational Safety and Health Administration (OSHA) into 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 "excessive regulation kills people."

Although the cancer drug he mentioned has already been approved, Musk believes that loosening regulations can speed up the approval process for Neuralink, which has already implanted FDA-approved brain-computer interface devices in two patients.