Elon Musk is set to leverage his newfound political influence following Donald Trump’s presidency win, with both Trump and Musk hinting at a major role for the Tesla and SpaceX chief executive in Trump’s second term. Despite not disclosing specific details, Trump has praised Musk’s contributions and initiatives, such as the Department of Government Efficiency (D.O.G.E.) aimed at cutting federal spending. Both Trump and Musk have indicated that Musk is unlikely to take on an official role, with Musk emphasizing that he doesn’t need pay, a title, or recognition for his services.
Musk has expressed his intention to continue being involved in politics, with plans to keep his super political-action committee active after the election and prepare for future elections. In a recent podcast interview, Musk highlighted the need to make federal agencies smaller, ensure they stick to their authorized tasks, and eliminate unnecessary regulations. While details on Musk’s role in a potential Trump administration remain scarce, he has shown support for calls to dismantle the existing Washington establishment and has butt heads with regulators in the past.
With a series of lawsuits and government probes looming over Musk and his companies, a Trump administration could offer a more favorable regulatory climate for him. Tesla, in particular, stands to benefit from Trump’s economic proposals that could disadvantage its electric vehicle competitors. Musk’s backing of Trump comes after his earlier support for Democratic candidates, with his shift coinciding with his 2022 purchase of Twitter. Musk’s alliance with Trump has stirred controversy, with criticism from some quarters, including hedge fund manager Scott Bessent questioning the feasibility of Musk’s goal to cut $2 trillion from the federal budget.
As the founder and CEO of SpaceX and Tesla, Musk is one of the world’s wealthiest individuals, with significant stakes in these companies as well as control over other ventures like the platform formerly known as Twitter and a generative AI startup. Musk’s influence extends beyond the tech industry, as seen in Tesla’s recent stock rally following Trump’s proposals. The potential benefits for Musk from a Trump administration were evident in Tesla’s stock performance, which surged to its highest level in months, adding billions to Musk’s net worth. Analysts also predict a competitive advantage for Tesla in an environment with reduced subsidies and tariffs on Chinese imports.
Overall, Musk’s alignment with Trump and potential influence in a Trump administration could have far-reaching implications for the tech industry and beyond. The dynamics between Musk and the government, as well as his motivations and actions in the political arena, will be closely monitored in the coming months and years. As one of the most prominent figures in the business world, Musk’s interactions with the political establishment are likely to shape the future of technology, innovation, and regulation in the United States and globally.
