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How Elon Musk’s 0 million investment in Trump’s victory could pay off huge for Tesla and the rest of his business empire
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How Elon Musk’s $130 million investment in Trump’s victory could pay off huge for Tesla and the rest of his business empire

Donald Trump’s election night speech in the country confirmed that one of the biggest winners of the evening, besides himself, was Elon Musk.

Trump spent a sizable portion of his sprawling victory speech thanking Musk, who has recently spent more than $130 million and a lot of time and tweets on the conservative political cause. In particular, Trump had high praise for Musk’s rocket company SpaceX and Starlink Internet Satellites — two business units poised for government contracts.

“We need to protect our super-geniuses,” the president-elect said. During the campaign, Trump said he would create a new “government efficiency” position in his administration for the tech CEO at Musk’s request.

Musk has been known to invoke government overreach in the face of any fine or penalty. So it’s no surprise that the multibillionaire has linked up with Trump, who has promised to roll back the regulations.

In addition to possible looser government oversight, Musk’s alliance with Trump could help him secure federal contracts. The New York Times rEPORTS that SpaceX and adze they have already collected at least $15.4 billion in government contracts over the past decade. Musk’s colleagues and government officials said Reuters the billionaire’s investment in Trump is part of a larger effort to shield his companies from regulation and secure access to government subsidies.

Below are just a few of the ways each of Musk’s businesses stands to gain from Trump’s retaking of the White House.

SpaceX and Starlink

Tensions between the Federal Aviation Administration and SpaceX are high. In September, Musk called for the resignation of FAA chief Michael Whitaker over more than $630,000 in fines levied against SpaceX for violations involving rocket launches. Musk said his plans for a Department of Government Efficiency (DOGE) under Trump include relaxing regulations on its missile launches.

Meanwhile, Starlink, SpaceX’s satellite internet unit, could, too get a friendlier welcome from the Federal Communications Commission under Trump, assuming the president taps Republican Commissioner Brendan Carr to replace incumbent Jessica Rosenworcel. Carr called the FCC’s 2022 decision to revoke $885 million in subsidies for Starlink “regulatory harassment.” And Trump himself has suggested using Starlink satellite services for rural connectivity — a potential financial boon for Starlink — as part of the government’s $42 billion plan for future broadband funding.

X

Following Musk’s takeover of what was once Twitter, the Federal Trade Commission investigated whether X and its new owner violated an existing FTC data confidentiality agreement with the company. After purchasing the service, now known as X, Musk cut the privacy and security compliance teams that were supposed to keep the company in the FTC’s favor. Last week, Musk promised a refund, saying FTC Chairwoman Lina Khan would be fired under the Trump administration. Never mind that Trump’s vice president, JD Vance, praised Khan for being tough on monopolies.

xAI

Musk’s generative AI startup xAI has a chatbot that competes with OpenAI’s ChatGPT and other big language models. Musk is therefore very interested in any regulation that impacts AI.

So far, federal talks about enacting broad regulation of artificial intelligence companies have not materialized. But Musk could still step in by advising Trump on one lighter-touch replacement for the Biden administration’s AI executive ordera framework for the use and development of AI that places some restrictions on AI companies.

In California, Musk championed controversial safety legislation, SB 1047, that would have held back big AI companies. This legislation has been fiercely opposed by venture capitalists and developers at large, citing the potentially catastrophic risks of artificial intelligence.

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Federal auto safety regulators hit Tesla last month with a new investigation into its Full Self-Driving mode, which partially automates human driving, after a Tesla driver fatally struck a pedestrian. Musk could use his influence to shape federal auto safety enforcement or federal regulation of self-driving cars or robotaxis. It’s an area he cares deeply about, as Tesla hopes to introduce robotaxis to take on more established competitors like Alphabet’s Waymo and even GM’s Cruise.

Musk may also try to lobby Trump on his opposition to the Biden administration’s electric vehicle tax credits, which boost electric vehicle purchases.

Trump’s promise to increase Biden’s existing tariffs on China and other competing nations could also be complicated for Musk. Limiting imports of cheaper electric vehicles would eliminate some of Tesla’s competition in the US, but escalating a trade war would also hurt technology more generally by cutting off reliance on China and Taiwan for chips.

Whatever the case, investors are hopeful: Tesla shares jumped 15% following Trump’s victory speech.

Boring company

Musk’s visions for high-speed transit, such as the Boring Company’s Hyperloop project, are stifled by regulations and the limitations of current technology. Instead, he focused on a lower-tech version: Teslas that shuttle passengers underground near the Las Vegas convention center. The project faced an OSHA investigation job security. But despite the high costs, complicated infrastructure and unsafe conditions, Musk persisted government regulations are to blame for tunnel projects in other US cities going down. If anything, having allies in the US government could make it easier for Boring to win major infrastructure projects.

Neuralink

As the founder of brain chip company Neuralink, Musk has criticized the Food and Drug Administration’s lengthy approval processes for new drugs and medical devices, arguing at a rally in Pennsylvania that “over-regulation is killing people.” It was later reported that the cancer drug Musk was referring to it was, in fact, approved. Still, Musk’s vision for large-scale “government efficiency” would likely target the FDA as well, and could get approvals for Neuralink faster. So far, Neuralink has implanted brain devices in two patients with FDA approval.

This story was originally presented on Fortune.com