Elon Musk’s significant investments and vocal support for Donald Trump during the 2024 presidential campaign are set to pay off as the bil...
Elon Musk’s significant investments and vocal support for Donald Trump during the 2024 presidential campaign are set to pay off as the billionaire Tesla, SpaceX, and X/Twitter boss stands to gain from the president-elect’s second term in office.
Business Insider reports that former President Donald Trump has reclaimed the White House, and one of his most prominent supporters, Elon Musk, is poised to reap the benefits. The billionaire entrepreneur, who heads companies such as Tesla, SpaceX, The Boring Company, Neuralink, and X (formerly Twitter), invested over $130 million in pro-Trump efforts throughout the campaign season.
Musk’s support for Trump was not limited to financial contributions. He consistently used his influential platform on X to advocate for the former president and even pledged a daily $1 million giveaway to swing-state voters who signed his petition supporting free speech and gun rights. This unwavering commitment to Trump’s campaign has positioned Musk as a key ally of the incoming administration.
With Trump’s victory, Musk could gain significant influence within the federal government. The president-elect has expressed interest in Musk’s proposal to establish a “Department of Government Efficiency.” This department would conduct a comprehensive financial and performance audit of the entire federal government.
Furthermore, a Trump presidency is likely to create a more favorable regulatory environment for Musk’s business empire. Many of his companies, including Tesla and SpaceX, rely heavily on federal approvals, regulations, subsidies, and contracts. Trump has pledged to reduce corporate taxes and ease regulations, which could provide Musk with greater freedom to develop and deploy advanced technologies.
In particular, regulatory leniency could be crucial for Tesla as the company seeks approval for fully autonomous vehicles in Texas and California. Additionally, SpaceX may benefit from increased opportunities to secure large contracts with the Department of Defense, given the company’s recent advancements in space travel and Trump’s support for the private space industry.
However, Musk’s alignment with Trump is not without risks. The president-elect has expressed his intention to retract unspent funds from the Inflation Reduction Act (IRA) to combat inflation and lower prices. This move could potentially impact the tax credits and incentives that have benefited Tesla, such as the $7,500 tax credit for new electric vehicles and tax credits for solar installations.
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