After spending $130 million, what did Musk gain from going all in on Trump?

Original title: How Elon Musks $130 million investment in Trumps victory could reap a huge pay off for Tesla and the rest of his business empire

Original article by Jenn Brice, FORTUNE

Terjemahan asli: zhouzhou, BlockBeats

Editors 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 Trumps presidency may lead to loose policies, which will benefit Musks 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.

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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 Musks 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 its no surprise that hes aligned himself with Trump, who has pledged to roll back regulations.

In addition to potentially less government regulation, Musks 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 Musks various businesses could benefit from Trumps 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, SpaceXs 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 FCCs withdrawal of $885 million in subsidies for Starlink in 2022 regulatory harassment. Trump also proposed using Starlinks satellite service to provide Internet connectivity to remote areas, which could Starlink brings financial benefits and is part of the governments 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 companys 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 Trumps vice presidential candidate JD Vance praised Lina Khan for her Musk has taken a tough stance in combating monopolies, and he doesnt 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 the Biden administration’s AI executive order, which would regulate 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 Teslas 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 Alphabets Waymo. and more established competitors like GM’s Cruise.

Musk may also pressure Trump to oppose the Biden administrations electric vehicle tax credit policy, which is designed to encourage consumers to buy electric vehicles.

However, Trumps promise to raise tariffs on competing countries such as China, which Biden has promised to increase, could have complicated consequences for Musk. Restricting imports of cheap electric vehicles could reduce Teslas 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

Musks vision for high-speed transportation, such as the Boring Companys 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.

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This article is sourced from the internet: After spending $130 million, what did Musk gain from going all in on Trump?

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The information, opinions and judgments on markets, projects, currencies, etc. mentioned in this report are for reference only and do not constitute any investment advice. In 2024, global macro-finance will reach a turning point amid turmoil. With the 50 basis point drop in September, the US dollar entered a rate cut cycle. However, with the US presidential election and global geopolitical conflicts, US economic employment data began to be distorted, which increased the differences among traders on the future market. The US dollar, US stocks, and US bonds all experienced sharp fluctuations, making short-term trading increasingly difficult. The differences and concerns were reflected in the U.S. stock market as the three major indexes all fluctuated violently without direction. On the contrary, BTC, which lagged behind in the rise, caught up…