It was all planned, 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
Original author: Jenn Brice, FORTUNE
Original translation: zhouzhou, BlockBeats

Editor's note: With Trump returning to the White House, Musk has become "Ma Baoguo". 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.' He answered, then paused and added, 'Otherwise, how can we help Trump be elected president in 2024?'"

Fortune magazine wrote in this article that Trump's coming to power may bring about policy easing, which will benefit Musk's companies. SpaceX and Starlink are expected to reduce regulatory pressure and win more government contracts; Tesla may also receive support in terms of autonomous driving regulation and electric vehicle tax incentives; 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 (the original content has been reorganized for easier reading and understanding):

Trump not only confirmed himself as one of the biggest winners of the night in his national address on election night, but also put Elon Musk in the spotlight. In this scattered victory speech, Trump spent a lot of time thanking Musk. Recently, Musk has invested more than $130 million and a lot of time and tweets to support conservative politics. Trump especially praised Musk's rocket company SpaceX and its Starlink Internet satellites - two business units with great potential for government contracts.

"We must protect these super talents," 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 known for his opposition to government interference, and whenever he faces fines or penalties, he always points out that this is government overreach. Therefore, it is not surprising that he has allied with Trump, who promises to relax regulations.

In addition to possible reduced government regulation, Musk's alliance with Trump may also help him obtain more federal contracts. According to the New York Times, SpaceX and Tesla have received at least $15.4 billion in government contracts in the past decade. According to Reuters, Musk's colleagues and government officials said that the billionaire's support for Trump is also to better protect his company from regulation and ensure government subsidies.

Here are some of the ways Musk’s various businesses could benefit from a Trump return to the White House:

SpaceX and Starlink

SpaceX has had a strained relationship with the Federal Aviation Administration (FAA), with Musk demanding the resignation of FAA Administrator Michael Whitaker in September after SpaceX was fined $630,000 for rocket launch violations. Musk has said he wants to create a “Department of Government Efficiency,” or DOGE, under a Trump administration, one of whose tasks would be to ease regulations on rocket launches.

Meanwhile, SpaceX’s satellite internet business, Starlink, might also get better treatment from the Federal Communications Commission (FCC) under Trump, especially assuming Trump appoints Republican Commissioner Brendan Carr to replace current Chairwoman Jessica Rosenworther. Carr has called the FCC’s revocation of an $885 million subsidy to Starlink in 2022 “regulatory harassment.” Trump has also proposed using Starlink’s satellite service 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 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 Chairman Lina Khan if the Trump administration came to power. Although Trump's vice presidential candidate JD Vance praised Lina Khan for being tough in fighting monopolies, Musk did not seem to care about these differences.

xAI

Musk’s generative AI startup xAI has developed a chatbot that competes with large language models such as OpenAI’s ChatGPT, so he is particularly concerned about any regulatory policies that may affect the development of AI.

So far, federal discussions on comprehensive regulation of AI companies have not landed. But Musk can still influence policy by suggesting to Trump a deregulatory alternative to the Biden administration’s AI executive order. The order sets some limits on the use and development of AI.

In California, Musk has supported the controversial safety bill SB 1047, which seeks to constrain large AI companies, but has been strongly opposed by venture capital firms and large-scale developers, who believe that the potential huge risks of AI cannot 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 it.

Musk could use his influence to influence federal regulation of self-driving cars, especially federal auto safety enforcement. He has a particular interest in this area as Tesla hopes to launch self-driving taxis to challenge more established rivals such as Alphabet’s Waymo and GM’s Cruise.

Musk could also pressure Trump to oppose the Biden administration’s electric vehicle tax credit, which is designed to encourage consumers to buy electric vehicles.

Trump’s promise to increase Biden’s tariffs on competing countries such as China, however, could have complicated implications for Musk. Restricting imports of cheap electric vehicles could reduce Tesla’s competition in the U.S., but an escalating trade war could also affect the entire tech industry, especially the chip supply chain that relies on China and Taiwan.

Either way, investors are excited about the prospect: Tesla shares surged 15% after Trump’s victory speech.

The Boring Company

Musk’s visions for high-speed transportation, such as the Boring Company’s “Hyperloop” project, have been stymied by regulatory and technological limitations. The company is currently working on a lower-tech version that would transport passengers in Tesla cars in an underground tunnel near the Las Vegas Convention Center. The project is also facing an Occupational Safety and Health Administration (OSHA) investigation into workplace safety.

Despite the high costs, complex infrastructure and unsafe conditions, Musk blames excessive government regulation for the failure of other cities to pursue successful tunnel projects. With government allies, the Boring Company may have an easier time winning big infrastructure projects.

Neuralink

As the founder of the brain-computer interface company Neuralink, Musk has repeatedly criticized the Food and Drug Administration (FDA) for its lengthy approval process for new drugs and medical devices. He said at a rally in Pennsylvania that "excessive regulation kills people."

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

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