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Elon Musk’s ties to Trump pose potential conflicts for his companies. Here is a have a look at his federal contracts

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Elon Musk is well the world’s wealthiest man, with a internet price topping $300 billion.

However even he stands to earn more money from his affiliation with the federal authorities after inserting a profitable wager on Donald Trump’s election to the presidency.

“It’s going to be a golden era for Musk with Trump in the White House,” Wedbush Securities analyst Dan Ives stated.

Musk’s aerospace firm SpaceX has acquired billions of {dollars} in federal contracts, and may very well be line for extra, whereas his 5 different companies might acquire from a lighter regulatory contact.

Trump has named Musk to co-head a brand new Division of Authorities Effectivity,” or DOGE — a nod to the cryptocurrency Musk adores. Nonetheless, federal legislation bars govt department staff, which might embrace unpaid consultants from collaborating in authorities issues that can have an effect on their monetary pursuits, except they divest of their pursuits or recuse themselves.

Richard Painter, a College of Minnesota Legislation Faculty professor and former chief White Home ethics lawyer, stated that if Musk is really working exterior the federal government he doesn’t must promote his belongings, however that limits his affect.

“He can make recommendations, but ultimately the decisions are made by government officials,” Painter stated.

Trump’s marketing campaign and Musk’s firms didn’t reply to requests for remark.

Right here’s how Musk may benefit from Trump’s presidency:

SpaceX

If there’s one Musk enterprise that would revenue probably the most from the incoming Trump administration, it’s SpaceX.

The corporate, which introduced this 12 months it was shifting its headquarters from Hawthorne to Texas, already has acquired at the least $21 billion in federal funds since its 2002 founding, based on authorities contracting analysis agency The Pulse. That features contracts for launching army satellites, servicing the Worldwide Area Station and constructing a lunar lander.

Nonetheless, that determine may very well be dwarfed by a federal initiative to fund a Mars mission, which is the acknowledged aim of SpaceX.

A SpaceX Falcon 9 rocket with the Crew Dragon house capsule lifts off from Kennedy Area Heart in Cape Canaveral, Fla., on Friday.

(Related Press)

“Elon Musk is wealthy, but he’s not wealthy enough to completely fund humans to Mars. It needs to be a public, private partnership, because of the tens of billions of dollars that this would cost, or even hundreds of billions dollars,” stated Laura Forczyk, govt director of house business consulting agency Astralytical.

SpaceX has already made massive strides testing his Starship rocket, probably the most highly effective ever constructed. NASA envisions using the rocket in its Artemis program to return people to the moon, nevertheless it has been designed to have sufficient thrust to propel a spacecraft to Mars. What’s extra, Trump, throughout his first presidency, speculated on Twitter about why the USA was specializing in the moon as a substitute of Mars.

Nonetheless, there are technical challenges, with SpaceX but to finish the $4-billion Starship lunar lander, which must be modified for Mars. And with no urgent geopolitical risk, Congress could also be unwilling to spend extra on house exploration, because it did throughout the Sixties with the Apollo program, Forczyk stated.

Ought to a Mars mission not materialize, SpaceX might nonetheless reap rewards within the subsequent 4 years. For instance, the Federal Communications Fee denied SpaceX almost $900 million in federal subsidies to supply rural broadband entry by means of its Starlink satellite tv for pc community. Beneath new FCC management, Forczyk sees that being reversed.

Tesla

Trump’s insurance policies might scale back the gross sales of electrical autos, however with Musk’s affect, his administration’s insurance policies might enhance Tesla — although not with federal funding.

For instance, Trump, who tempered criticism of electrical autos after Musk backed him, would possibly finish a $7,500 tax credit score for electrical autos. That might harm Tesla’s unprofitable rivals that rely extra on the tax credit to lure prospects.

“Tesla is the only automaker that has the scale and scope to price vehicles in a $30,000-to-$40,000 range and make significant profits,” Ives stated. “It would essentially take competition out of the market.”

Trump’s Republican administration is also contemplating imposing tariffs on Mexico and China, which might make automobiles costlier. Ives stated he expects Trump to make exceptions for Tesla and Apple in order that they’re not hit by a tax on imported items.

Tesla receives solely a smattering of federal contracts, based on USAspending.gov, a database that tracks U.S. authorities spending.

A sign with the word "Tesla."

A Tesla retailer at Cherry Creek Mall in Denver on Feb. 9, 2019.

(David Zalubowski / Related Press)

This 12 months, Tesla acquired at the least $2.8 million from the Pennsylvania Division of Transportation by means of a federally funded program to deploy EV charging stations.

From 2022 to 2024, Tesla and its subsidiaries had been awarded at the least $631,800 in federal contracts primarily to supply autos for the U.S. embassies in Singapore, Iceland and Thailand, the info confirmed.

The pioneering electrical car maker, which noticed its inventory surge after Trump’s win, has clashed with regulators over security considerations round its self-driving software program. Musk, who has vowed to chop at the least $2 trillion in federal spending, might stress regulators trying into his firms.

xAI

Musk’s startup xAI doesn’t seem to have federal authorities contracts, however synthetic intelligence firms may benefit in different methods underneath Trump.

Republicans and Musk have expressed help for reducing regulation to gas AI innovation, an important a part of the way forward for tech firms.

However Musk has additionally warned that AI might pose a risk to humanity, and it’s unclear how Trump plans to deal with potential security dangers that include know-how together with fraud, bias and disinformation.

Trump plans to repeal President Biden’s AI govt order that partly aimed to deal with AI security considerations by directing the federal authorities to take steps comparable to imposing shopper safety legal guidelines, based on the GOP’s MAGA platform.

People for Accountable Innovation, an advocacy group, desires Musk to turn into a strategic AI advisor to Trump, saying, “As artificial intelligence races ahead, the U.S. should lead the world in advancing AI safely and securely.”

A building with an "X" sculpture on top.

A newly constructed X signal on the roof of the headquarters of the social media platform beforehand often called Twitter is seen in San Francisco after Musk changed the brand in July 2023.

( Josh Edelson / AFP by way of Getty Photographs)

X

X, previously often called Twitter, served as an internet megaphone for Musk, who continually shared his help for Trump throughout the election season.

The social media website, which just lately relocated its San Francisco headquarters to Texas, doesn’t seem to have any federal authorities contracts, however X may benefit from coverage modifications that have an effect on its rivals comparable to Meta and TikTok.

Musk, who has declared himself a “free speech absolutist,” just lately shared an outdated Trump video with the phrases “YES!” Within the video from 2022, Trump says he would change Part 230, a legislation that shields platforms from legal responsibility for user-generated content material.

Platforms would qualify for immunity provided that the businesses “meet high standards of neutrality, transparency, fairness and nondiscrimination,” Trump stated.

The Boring Co.

Fed up with Los Angeles visitors, Elon Musk launched The Boring Co. with two tweets in 2016, promising “to build a tunnel boring machine and just start digging.”

The Bastrop, Texas, firm, previously headquartered in Hawthorne, has accomplished a 1.7-mile loop underneath the Las Vegas Conference Heart and is constructing a bigger citywide loop — each with out federal funding. Proposed initiatives in Chicago and another cities didn’t get previous the planning phases.

Nonetheless, at Trump’s urging, congressional representatives might earmark native transportation initiatives to the good thing about Boring Co., although the corporate would nonetheless must compete to win them, stated Greg Griffin, a former city planning professor on the College of Texas at San Antonio, who studied that metropolis’s proposed Boring Co. mission.

“There could be some alignment between the specific firm’s abilities and a [congressional] delegation that could support projects that match those abilities,” he stated. “The concept they were offering was not without merit.”

Native initiatives are usually paid for with 20% native funding and 80% federal cash.

Neuralink

Controlling robotic limbs. Seeing with out eyes. These are the sorts of miraculous advances Musk’s Neuralink startup has been making an attempt to realize.

The Fremont, Calif., firm he co-founded in 2016 doesn’t obtain federal cash, however its know-how and scientific trails are regulated by the Meals and Drug Administration. The extra hands-off strategy favored by Trump might help such medical machine builders.

“We’re concerned that regulation in general in the FDA will be weakened under the second Trump administration, and particularly concerned about medical devices,” stated Dr. Robert Steinbrook, well being analysis group director for the patron rights group Public Citizen.

Neuralink, which has raised greater than $600 million in enterprise capital, has developed an implant the scale of a coin with tiny wires that document mind exercise. A paralyzed Arizona man turned the primary human to obtain the implant in January and has since moved a cursor, browsed the web and performed video video games with this ideas. A second affected person was implanted with the machine in July.

Though the corporate is presently focusing on individuals with disabilities, Musk has stated the implants may very well be wedded with synthetic intelligence to significantly amplify the intelligence of all people — presenting its personal set of thorny scientific and moral points.

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