Trump Wins Again, Will Musk Usher in a Gilded Age?

Trump Wins Again, Will Musk Usher in a Gilded Age?On November 7th, Donald Trump was re-elected president of the United States. Billionaire Elon Musks outsized influence, fueled by his ardent support of Trumps campaign, may help him secure more favorable policies for his companies

Trump Wins Again, Will Musk Usher in a Gilded Age?

On November 7th, Donald Trump was re-elected president of the United States. Billionaire Elon Musks outsized influence, fueled by his ardent support of Trumps campaign, may help him secure more favorable policies for his companies. Federal records reveal that Musk donated at least $119 million to a pro-Trump group.

According to six sources familiar with Musks business and political dealings, as well as two government officials who have extensive contact with Musks companies, this is part of a broader strategy to shield his companies from regulatory or enforcement constraints while bolstering government support. Many of Musks ventures, from Teslas electric cars to Neuralinks brain-computer interface chips to SpaceXs rockets, rely on government regulation, subsidies, or policy support.

Musk believes all regulation hinders his business and innovation, said a former SpaceX executive who spoke on the condition of anonymity. He sees the Trump administration as a tool to push as much of that regulation as possible out of the way so he can go full speed ahead with his goals.

On July 13, the day of Trumps assassination attempt in Pennsylvania, Musk publicly endorsed Trump. In the final days of Trumps campaign, Musk frequently appeared at his rallies and joined the president-elect at his Mar-a-Lago club in Florida on election night. Trump also promised to appoint Musk as the governments efficiency commissioner. Tesla, SpaceX, Neuralink, Musk, and the Trump campaign did not immediately respond to requests for comment.

Musk has built a reputation for combating climate change by producing electric vehicles and developing rockets that could one day help humanity escape a dying Earth for Mars. Now, he stands at the forefront of a group of Silicon Valley billionaires who oppose California's long-held liberal ideology, labeling it a "wokemindvirus." Musks deepening political involvement could place his industrial empire in a position reminiscent of the "Gilded Age"an era of rapid economic and wealth growth during the late 19th century, named after Mark Twains novel. Industrial titans, including Morgan and Rockefeller, wielded significant influence over government policies that affected their companies and fortunes during this time. The expansion of Musk's power has excited his fans and supporters, who also see government as a hindrance to Musk's high-tech ventures. Venture capitalist Shervin Pishevar, who has invested in SpaceX, advocates for Silicon Valley to align with Trump. He asserts that reduced regulations will accelerate SpaceXs journey to Mars. Hell make America run like a startup, Pishevar said. There has never been a greater entrepreneur in Americas history than Elon Musk.

Pushing for Car Policies

Musks increased political involvement is driven in part by his feeling of being overlooked by the Biden administration. For example, the White House excluded Tesla from its August 2021 Electric Vehicle Summit, inviting only Detroit automakers, which produce considerably fewer electric cars than Tesla. This prompted him to embrace Trump's right-wing populism.

Teslas fate may largely depend on Trumps stance on subsidies, policies, and regulatory schemes related to electric and self-driving vehicles. Democratic administrations have typically supported policies favoring electric vehicles, policies that Tesla has encouraged. However, while Republicans traditionally oppose electric vehicles, and Trump has mocked Bidens electric car policies during his campaign, Musk may now seek to safeguard these policies.

According to informed sources, one of Musks goals is to delay any enforcement actions that the National Highway Traffic Safety Administration (NHTSA), a major federal safety regulator, might take regarding the safety of Teslas Autopilot and FSD systems. The source also indicated that Musk may push for regulatory policies favoring Teslas autonomous vehicles and robotaxis. Moreover, he could influence the establishment of new regulations or agencies through his new artificial intelligence company, xAI.

Musk stated last month that he anticipates launching driverless Teslas in California and Texas next year, with plans to begin producing Cybercabs, fully self-driving cars lacking steering wheels and pedals, in 2026. Tesla would need an exemption from NHTSA to manufacture such vehicles. Currently, no nationwide regulations dictate how to deploy self-driving cars, meaning operators face a patchwork of rules across different states. During last months earnings call, Musk complained about the regulatory challenges posed by varying standards across states and advocated for a uniform federal approval process.

Despite Musks complaints about bureaucracy hindering innovation, SpaceX currently leads the world in government-funded rocket launches, and Tesla sells nearly 2 million heavily subsidized electric vehicles annually. Tesla's stock rose 15% on Wednesday following Trumps victory.

At Neuralink, a brain-computer interface startup, Musk has long complained about the Food and Drug Administrations (FDA) slow approval process, delaying the companys plans to implant devices in human brains. Sources familiar with the companys operations suggest that Musk may leverage his growing influence within the Trump administration to overcome some safety approval bottlenecks.

Expanding Power

According to six individuals with knowledge of Musks companies regulatory affairs and his political strategy, while Musk seeks a less stringent regulatory environment, his companies have faced fewer regulatory requirements and weaker enforcement of existing federal rules. They point out that federal agencies have shown a lack of political will to pursue alleged policy or safety violations by Musks companies, partly due to his dominant positions in highly regulated industries like electric vehicles and rockets.

For example, the National Aeronautics and Space Administration (NASA) relies on SpaceXs expertise to carry out missions, such as rescuing Boeing Starliner astronauts currently stranded in space. An anonymous federal official familiar with SpaceXs government interactions stated that NASA and other agencies often strive to avoid tension with SpaceX. This official said, NASA needs SpaceX, not the other way around. NASA is reported to have invested over $15 billion in SpaceX. SpaceX is also allegedly working with US intelligence agencies on a network of hundreds of spy satellites.

A probe last year documented at least 600 workplace injuries at SpaceX locations across the US, discovering that the company disregarded safety regulations and standard operating procedures. Data reveals that workplace injury rates at SpaceX facilities consistently exceed industry averages. Neither NASA nor the Occupational Safety and Health Administration (OSHA), responsible for regulating worker safety, has taken significant enforcement action against SpaceXs workplace injuries and related violations. NASA declined to comment on the potential impact of Musks influence following Trump's re-election.

Despite this, Musk criticizes the government for enforcing these regulations too stringently, despite his companys quicker moves than its competitors. In a pre-election interview, Musk described federal enforcement as overly severe and stated his goal was to escape absurd regulations. Musk said at the All-in Summit, Ultimately, you cant do anything.

Due to a temporary ban imposed by Congress, the US government has not regulated safety for private orbital spaceflights to encourage industry innovation. According to four sources familiar with SpaceXs regulatory strategy, the Trump administration, under Musks influence, is expected to push for less stringent regulations in this area. Sources indicate that Musk and SpaceX believe their dominance in the industry justifies less oversight. However, sources also warn that leaving Musk unchecked could have unintended consequences for the industry. A former SpaceX executive cautioned that a relaxed regulatory approach in a high-risk industry like rocket construction could lead to serious problems and even set the industry back ten years.