Elon Musk Could Gain Big if Trump Wins the Election

If Donald Trump becomes president again, Elon Musk could see huge benefits for his companies, including SpaceX and Tesla. Musk has spent over $100 million to support Trump’s campaign and has turned X (formerly Twitter) into a platform friendly to Trump.

But if Musk gets a government role, this could create serious conflicts, as he might have influence over rules that affect his own businesses.

Under Trump, Musk might see fewer regulations on issues like labor and environmental laws, lower taxes, and more government contracts for SpaceX. Musk has a lot riding on this election, and he has become one of Trump’s most active supporters, donating millions to a pro-Trump super PAC and even appearing at events in Pennsylvania to rally voters.

If Trump wins, Musk could end up with a role in the administration, possibly helping to cut government spending. This position could create ethical concerns, as Musk might be in a position to influence agencies that oversee his businesses. Additionally, Musk’s close ties to China, where Tesla has major operations, could raise national security concerns.

Tesla depends heavily on China, both for manufacturing and as a key market. Earlier this year, Musk even supported China’s view on Taiwan, which could complicate U.S.-China relations.

Musk has also made comments on global issues, including the war in Ukraine, that sometimes align with Russia’s position. Lawmakers are worried Musk might push for U.S. policies that benefit his business interests abroad.

SpaceX’s Key Role in Government Contracts

SpaceX, Musk’s rocket company, plays a major role in launching government and commercial satellites. If Trump wins, Musk’s strong connection with Trump could potentially give SpaceX an edge over competitors like Boeing, which also holds big government contracts.

Musk has often criticized certain types of government contracts that he says don’t encourage innovation. Trump has praised Musk’s efficiency and suggested he might help oversee spending cuts in the government. Recently, Musk even talked about cutting $2 trillion from the federal budget, although he didn’t specify which programs he’d target.

Brian Hughes, a senior Trump campaign adviser, said Trump wants Musk to lead a team that will make the government run more efficiently and use tax money wisely. Musk, for his part, has welcomed the idea of Trump’s support in reducing regulations on SpaceX and Tesla.

If Musk joins Trump’s team in any role, there could be serious ethical concerns. In his first term, Trump didn’t follow the usual practice of keeping personal and political interests separate. He kept his business holdings, like his hotel in Washington, D.C., where foreign officials sometimes stayed.

Tax Policy and Business Interests

Musk’s businesses have been involved in several regulatory and legal battles with the Biden administration. These include investigations into Tesla’s Autopilot safety, racial harassment claims at a Tesla factory, and hiring discrimination allegations against SpaceX. Experts believe Musk’s regulatory issues might be reduced if Trump takes office again.

Tax policy is another area where Musk could gain. Trump’s 2017 tax cuts lowered the corporate tax rate, which benefited companies like Tesla. Trump has promised to keep these cuts, while Vice President Kamala Harris has proposed increasing taxes for corporations and wealthy individuals.

Beyond tax benefits, Musk’s companies might enjoy a friendlier regulatory environment under Trump, allowing them to grow with fewer restrictions. Experts say a Trump administration might prioritize other goals over strict regulation.

Regardless of who wins the election, SpaceX is expected to continue receiving large federal contracts from NASA and the Department of Defense. SpaceX is currently the only company transporting NASA astronauts to the International Space Station. Trump has openly supported Musk’s vision to send humans to Mars, which could mean even closer cooperation between SpaceX and the government.

Musk has voiced his frustration with regulatory delays, which he says hold back his Mars plans. Trump has promised to support Musk’s Mars goals, calling him “as smart as you get.”

As election day nears, Musk’s open support for Trump highlights how much he and his companies have at stake. With the potential for tax cuts, reduced regulations, and big government contracts, a Trump win could strongly benefit Musk’s business empire.