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Trump's victory may bring multiple Favourable Information to Musk's business empire.
The Political Landscape of Tech Giants: Trump's Victory May Bring Significant Favourable Information to Musk's Business Empire
Recently, with Trump's victory in the election, Musk has become the focus of attention. In his victory speech, Trump highly praised Musk, especially acknowledging his rocket company SpaceX and the Starlink internet satellite business. Both of these business sectors have enormous government contract potential.
Musk has long been known for opposing government intervention, and whenever faced with fines or penalties, he always blames it on excessive government interference. Therefore, it is not surprising that he has allied with Trump, who has promised to ease regulations.
In addition to the potential reduction in government regulation, the alliance between Musk and Trump may also help him secure more federal contracts. Reports indicate that over the past decade, SpaceX and Tesla have secured billions of dollars in government contracts. Some analysts believe that Musk's support for Trump is also aimed at better protecting his companies from regulation and ensuring access to government subsidies.
Here are some ways that Musk's various businesses may benefit after Trump's return to the White House:
SpaceX and Starlink
SpaceX has a tense relationship with the Federal Aviation Administration (FAA), and Musk hopes to establish a special department under the Trump administration, one of whose tasks would be to relax regulations on rocket launches. Meanwhile, Starlink may also receive better treatment from the Federal Communications Commission (FCC) during Trump's term, especially in terms of subsidies and policy support. Trump also proposed using Starlink's satellite services to provide internet connectivity to remote areas, which could bring substantial financial benefits to Starlink.
Social Media Platform
After Musk acquired a well-known social media platform at a high price, the Federal Trade Commission (FTC) conducted an investigation into him. Musk promised to take action against the FTC chairman if the Trump administration took office. Although there are differences within Trump's camp regarding certain regulatory policies, Musk seems to be unconcerned about these discrepancies.
Artificial Intelligence
Elon Musk's AI company xAI is developing a chatbot to compete with other large language models. Although there is currently no comprehensive federal policy regulating AI companies, Musk may influence policy by suggesting alternatives to Trump for easing regulations, replacing the existing government's AI executive orders.
Tesla
The federal automotive safety regulator has recently launched an investigation into Tesla's full self-driving mode. Musk may use his influence to affect federal regulation of autonomous vehicles, particularly in terms of safety enforcement. He may also pressure Trump to oppose the current administration's electric vehicle tax credit policy.
However, Trump has promised to raise tariffs on certain countries, which could have complex implications for Musk. Restrictions on the import of cheap electric vehicles may reduce Tesla's competition in the U.S. market, but an escalation of the trade war could also affect the supply chains of the entire technology industry.
Boring Company
Elon Musk's Boring Company is facing setbacks in its high-speed transportation project due to regulatory and technological constraints. With government allies, the company may find it easier to secure large infrastructure projects.
Neuralink
As the founder of the brain-computer interface company Neuralink, Musk has repeatedly criticized the Food and Drug Administration (FDA) for its lengthy approval process. He believes that loosening regulations could accelerate Neuralink's approval process. Currently, Neuralink has implanted FDA-approved brain-computer interface devices in two patients.
Overall, Trump's victory could bring multiple favourable information to Musk's business empire, from regulatory relaxation to more government contract opportunities. Investors are optimistic about this prospect, and after Trump's victory speech, Tesla's stock price saw a significant increase. However, this political-business alliance has also raised concerns about the excessive influence of tech giants.