When Donald Trump is inaugurated as the 47th President of the United States next January, Elon Musk will become Minister of the Department of Government Efficiency (DOGE). The businessman, who owns six companies registered in the country, will be tasked with reducing the government budget as much as possible.
And it is obvious that possible conflicts of interest emerge, because the policies put in place could precisely benefit these companies. Here's how.
Tesla
Donald Trump is not a big fan of electric vehicles, and is even planning to eliminate the $7,500 tax credit granted to buyers of an electric car. Likewise, Tesla is one of the biggest beneficiaries of government aid planned for electric vehicle manufacturers in the country, which the president-elect would like to brush aside. But Elon Musk could have his say, and reach a solution that would only moderately affect Tesla.
In contrast, the Republican's plan to impose higher tariffs on imported vehicles, particularly those from Chinese manufacturers BYD and NIO, has the potential to strengthen Tesla's competitive position in the US market. The autonomous driving sector could also be subject to looser regulation; a boon for the manufacturer, which recently unveiled its very first autonomous taxi.
It is also important to note that Tesla is the subject of a federal investigation for false advertising regarding its Autopilot driving assistant. It would not be impossible for it to be abandoned, the Republican camp having also won the Senate and the House of Representatives. The day after the election, Tesla's stock rose 13%.
SpaceX
The space startup is now a cornerstone of NASA's activity. The election of Donald Trump could further accentuate this dynamic. His administration is thus likely to reduce some of the regulatory frameworks that govern space launches, creating a more favorable environment for SpaceX. Increasing the frequency of launches and reducing bureaucratic hurdles is feasible, particularly from agencies such as the Federal Aviation Administration (FAA) and the Environmental Protection Agency (EPA).
Musk being involved in “ government efficiency “, he could use his influence to strengthen his company's relationship with NASA, for example by increasing the value of the contracts awarded to it. As a reminder, Starship was selected as a lunar lander as part of the Artemis program, which consists of returning to the Moon and establishing a permanent base there.
The Republican majority Congress could approve a larger budget for space exploration, benefiting SpaceX which aims to participate in Martian exploration missions.
X
Elon Musk's presence in government could lead to regulatory favors for X Corp, the parent company of X, formerly Twitter, which the billionaire bought in 2022 for $44 billion. This would still raise important ethical questions, given the controls exercised by federal agencies.
It is also possible that the Trump administration will offer new government contracting opportunities to the social network, where pro-conservative messages are increasingly emphasized.
But it is especially in Europe that X could benefit from the election of Donald Trump. JD Vance, future vice-president, simply threatened the European Union with withdrawing the United States from NATO if it regulated X. He was then referring to the Digital Services Act, which aims to protect European citizens from hateful content and illegal online. X is precisely the target of an investigation because of its moderation policy considered too permissive.
Neuralink
Neuralink, the company that developed a brain-computer interface, could be one of the big winners of this election. Because Elon Musk has repeatedly criticized the approval processes for medical devices by the Food and Drug Administration (FDA). Donald Trump, for his part, defends a deregulated approach to the industry, which could favor less complex procedures.
In this context, the pace of its trials on human patients could accelerate. This would pave the way for faster deployment of Neuralink's technology, as well as government funding and contracting opportunities, including through neurotechnology-focused initiatives and public-private partnerships.
The Boring Company
This deregulation policy should also benefit The Boring Company, the company which wants to fight traffic jams by building underground tunnels. This would indeed speed up project approvals and reduce compliance costs, facilitating Elon Musk's plans.
As Trump has always placed great importance on infrastructure development, The Boring Company could benefit from federal contracts to improve transportation networks, particularly if innovative solutions like tunneling are put forward.
xAI
It is the youngest of Elon Musk's companies, but certainly one of the most ambitious. And the arrival of Donald Trump in power could very seriously be favorable to him. Because Republicans should take a flexible approach to regulating artificial intelligence (AI), reducing compliance constraints.
This would allow Musk to rapidly advance technologies like autonomous systems and machine learning applications. The billionaire's role as a political advisor could also benefit the startup, by facilitating favorable conditions for its AI initiatives. As a reminder, xAI has been operating the largest supercomputer in the world for several weeks.
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