It seems that Elon Musk is the new star poised to emerge in the Trump administration, as stated by the 47th American president during his election victory announcement for the 2024 U.S. elections. Musk is likely to take on two primary roles in Trump’s government. The first is to head a committee focused on reducing waste in government spending, with Trump indicating in an interview that Musk could serve as the Secretary of Cost Cutting. According to Trump’s statements, this committee will conduct a comprehensive review of federal government accounts and financial performance, aiming to eliminate fraud and improper payments within six months of its establishment.
The second role involves assisting America in reaching Mars by 2028—a victory that Trump aspires to achieve as a means to outperform China. This ambition is supported by the “Artemis” project, which aims to land a new human on the moon by 2026, with Musk playing a significant role through his company SpaceX.
The collaboration between Trump and Musk isn’t new, as Musk was a member of several advisory councils established by the previous Trump administration. In 2017, Musk joined the “Economic Advisory Council” and the “Jobs Council” as an informal member, intended to advise the president on economic and business issues. However, Musk resigned from these advisory councils after Trump announced the U.S. withdrawal from the Paris Climate Agreement, expressing his disapproval of the decision and his desire to support global efforts to combat climate change.
If Trump stands to benefit from Musk in lowering costs and achieving a milestone for his administration in reaching Mars or even sending another human to the moon, how will Musk benefit from Trump after supporting his campaign with over $118 million?
A Massive Empire:
Elon Musk possesses a vast industrial empire, including SpaceX, which aims to reach Mars and dominate space transportation with its new Super Heavy rocket, and Tesla, a leader in electric vehicles, self-driving cars, and home robots. His company, The Boring Company, seeks to transform ground transportation through massive vacuum tunnels for high-speed Hyperloop trains, while Neuralink is focused on developing brain implant technology to connect the human mind directly with computers, enhancing human capabilities and aiding in the treatment of medical conditions. Additionally, he acquired Twitter, now rebranded as X, with ambitions to build a comprehensive platform beyond just a social media site.
Musk is also engaged in other interests such as cryptocurrencies, having played a significant role in boosting their popularity and impact through his statements and tweets, which have caused market upheavals and sharp changes in cryptocurrency values. For example, in early 2021, Tesla announced a $1.5 billion purchase of Bitcoin, which helped legitimize it in the market. Musk declared that Tesla would accept Bitcoin as a payment method for car sales, causing Bitcoin prices to surge, but when he reversed this decision due to environmental concerns regarding energy consumption, Bitcoin prices fell sharply. Musk has also been a strong advocate for Dogecoin, a cryptocurrency that started as a joke but gained fame and value due to his repeated tweets about it.
Moreover, Musk’s interest in artificial intelligence (AI) is notable; he was one of the co-founders of OpenAI in 2015, which developed the famous ChatGPT application. However, disagreements with OpenAI’s management led him to withdraw from the company as its initial vision focused on developing AI safely and openly for everyone, while the shift to a limited-profit model to attract funding prompted his exit, which he viewed as a departure from its founding principles. Despite distancing himself from OpenAI, Musk’s enthusiasm for AI development continued. In 2023, he founded a new AI company called xAI to develop generative AI technologies that could rival current models.
In fact, Musk’s plans extend beyond developing generative AI; he aims to integrate AI capabilities into his current products. For instance, Tesla utilizes AI technologies to enhance the performance of its self-driving cars, and AI is anticipated to play a crucial role in developing the X platform (formerly Twitter) and adding features that meet user needs. To achieve these objectives, Musk has invested in the necessary infrastructure to train AI systems, including purchasing advanced graphics processing units and building massive computers for AI training.
Potential Gains:
This vast empire established by Musk, which has made him the richest person on the planet, continues to face significant challenges—whether regulatory and legal, financial and logistical, or related to competition and international expansion. It requires substantial government support to realize its yet-unfulfilled goals.
The path to reaching Mars remains long and necessitates considerable backing from U.S. government institutions, while creating a massive network of Hyperloop tunnels will require substantial funding and regulatory and legal measures. Current legislation regarding AI development and self-driving car regulation is still in its infancy, and the health regulations affecting Neuralink’s operations are extremely complex. Here lie Musk’s needs from the Trump administration, through which he could achieve several gains, such as:
Easing Regulatory and Legal Constraints: Regulatory regulations are among the foremost challenges Musk’s companies face, particularly concerning electric vehicles, AI, and space. Projects like Tesla and The Boring Company require local and federal licenses to build the infrastructure for electric vehicles and tunnels, sometimes impeding project progress. The Trump administration, known for supporting regulatory rollbacks, could contribute to easing some legal requirements and necessary licensing, thus enabling Musk’s companies to implement their plans more quickly and flexibly.
Relaxing Climate and Environmental Laws: Musk’s companies also face environmental pressures, with Tesla and SpaceX needing to balance innovation with reducing their carbon footprint. The previous Trump administration tended to lower climate and environmental regulations, and it may continue this trend, granting Musk greater freedom in energy use and expansion. This could be particularly beneficial for SpaceX, as it requires large quantities of rocket fuel, which could become challenging under stringent environmental regulations.
Providing Funding and Financial Support: Funding is an ongoing challenge, especially for projects requiring enormous investments like SpaceX’s Starship space exploration initiative. If the Trump administration supports space projects, SpaceX may win government contracts or financial backing, alleviating financial burdens and helping achieve its ambitious goals. Additionally, Trump’s policies could reduce corporate taxes, boosting profits and helping Musk finance his future projects.
Access to Advanced Technology: Musk’s companies also face significant competition in AI, electric vehicles, and space, as many major companies strive to develop similar technologies. He might gain support from the Trump administration to access certain technologies unavailable to other companies, particularly those developed by NASA or U.S. military laboratories.
International Expansion and Trade Policies: Musk’s companies face considerable challenges in international markets amid the trade tensions between the U.S. and certain countries like China. Trump’s trade policies could be a double-edged sword. While they may protect the U.S. market, they could impose restrictions on Tesla and SpaceX in accessing global markets. Therefore, Musk might seek Trump’s support to ensure continued trade cooperation with other nations or secure exemptions from some regulations.
Overall, Musk stands to benefit significantly from the new Trump administration, particularly given the shared traits between Trump and Musk that make collaboration achievable. Both are profit-driven businessmen with a reputation for volatility and unpredictability, and they both enjoy media attention. These common characteristics could limit their disagreements and amplify their mutual goals. With Trump’s support from Republicans across the House, the Senate, and the Supreme Court, Musk has greater opportunities to achieve his objectives in partnership with the Trump administration.
