© Evolf/Shutterstock.com
When Donald Trump is inaugurated as the 47th president of the United States in January, Elon Musk will become the minister of the Department of Government Efficiency (DOGE). The businessman, who owns six companies registered in the country, will be tasked with reducing the government budget as much as possible.
And it is clear that potential conflicts of interest are emerging, because the policies put in place could benefit these companies. Here is how.
Tesla
Donald Trump is not a big fan of electric vehicles, and is even planning to eliminate the $7,500 tax credit granted to buyers of an electric car. Similarly, Tesla is one of the biggest beneficiaries of government subsidies for electric vehicle manufacturers in the country, which the president-elect would like to sweep aside. But Elon Musk could have his say, and come up with a solution that would only moderately affect Tesla.
On the other hand, the Republican’s plan to impose higher tariffs on imported vehicles, particularly those from Chinese manufacturers BYD and NIO, has the potential to strengthen Tesla’s competitive position in the U.S. market. The autonomous driving sector could also be subject to more relaxed regulation, a boon for the automaker, which recently unveiled its first-ever self-driving taxi.
It’s also important to note that Tesla is under federal investigation for false advertising about its Autopilot driver assistance system. It’s not out of the question that the investigation could be dropped, as the Republicans also won the Senate and House of Representatives. In the aftermath of the election, Tesla’s stock rose 13%.
SpaceX
The space startup is now a cornerstone of NASA’s business. The election of Donald Trump could further accentuate this dynamic. His administration is thus likely to reduce some of the regulatory frameworks that govern space launches, creating a more favorable environment for SpaceX. Increasing the frequency of launches and reducing bureaucratic hurdles are possible, particularly from agencies such as the Federal Aviation Administration (FAA) and the Environmental Protection Agency (EPA).
With Musk involved in “ government efficiency », he could use his influence to strengthen his company’s relationship with NASA, for example by increasing the value of the contracts awarded to it. As a reminder, Starship was selected as a lunar lander as part of the Artemis program, which consists of returning to the Moon and establishing a permanent base there.
The Republican-majority Congress could approve a larger budget for space exploration, benefiting SpaceX, which aims to participate in Martian exploration missions.
200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000X
Elon Musk’s presence in government could lead to regulatory favors for X Corp, the parent company of X, formerly Twitter, which the billionaire bought in 2022 for $44 billion. This would still raise significant ethical questions, given the controls exercised by federal agencies.
It is also possible that the Trump administration will offer new government contract opportunities to the social network, where pro-conservative messages are increasingly highlighted.
But it is mainly on the European side that X could benefit from the election of Donald Trump. J.D. Vance, future vice president, simply threatened the European Union to withdraw the United States from NATO if it regulated X. He was then referring to the Digital Services Act, which aims to protect European citizens from hateful and illegal content online. X is precisely the target of an investigation because of its moderation policy deemed too permissive.
Neuralink
Neuralink, the company that developed a brain-computer interface, could be one of the big winners of this election. Because Elon Musk has repeatedly criticized the Food and Drug Administration (FDA) approval processes for medical devices. Donald Trump, for his part, advocates a deregulated approach to the industry, which could promote less complex procedures.
In this context, the pace of its trials on human patients could accelerate. This would pave the way for a faster deployment of Neuralink's technology, as well as opportunities for funding and government contracts, including through neurotechnology initiatives and public-private partnerships.
The Boring Company
This deregulation policy should also benefit The Boring Company, the company that wants to combat traffic jams by building underground tunnels. This would speed up project approvals and reduce compliance costs, facilitating Elon Musk's plans.
Trump having always attached great importance to infrastructure development, The Boring Company could benefit from federal contracts to improve transport networks, particularly if innovative solutions such as tunneling are put forward.
xAI
It is the youngest of Elon Musk's companies, but certainly one of the most ambitious. And Donald Trump's arrival in power could seriously benefit it. Because Republicans should take a flexible approach to regulating artificial intelligence (AI), reducing compliance burdens.
This would allow Musk to rapidly advance technologies such as autonomous systems and machine learning applications. The billionaire’s role as a political advisor could also benefit the startup, by facilitating favorable conditions for its AI initiatives. As a reminder, xAI has been operating the world’s largest supercomputer for several weeks.
📍 To not miss any Presse-citron news, follow us on Google News and WhatsApp.
23.1 M reviews