“FT”: Elon Musk supported Trump as part of a long-term business strategy

Luc Williams

Musk’s investments and political aspirations

“The owner of Tesla, SpaceX, xAI and X aspires to shape the future of humanity – a Neuralink chip in the brain, a robot at home, a driverless car to get to work, rockets to colonize Mars. Musk assumes that if Trump wins, he (himself) will gain significant influence on how the (US) government will treat his companies,” said the British daily.

The billionaire has so far donated at least $75 million to Trump’s election campaign. and uses his X platform to promote the former president and bizarre conspiracy theories intended to discredit his election rival Kamala Harris – he recalled.

On Sunday, Musk announced that until Election Day in the US, he will give away $1 million each day to one of the registered voters in key states who sign his political petition. Moreover, he decided to pay exorbitant rates to volunteers who would mobilize Republican Party supporters to vote in the elections.

The impact of regulations on Musk’s activities

The billionaire himself explains his preferences by the need to introduce “sensible regulations”, arguing that if the current trend to regulate the activities of his companies continues, “we will never reach Mars.” “FT” recalled that many of Musk’s initiatives – self-driving cars and rockets – were targeted by regulators due to safety regulations.

Meanwhile, if Trump wins, SpaceX and Starlink could receive new contracts from the US security apparatus, and Tesla could gain support from Republicans who are skeptical of electric cars. Regulators may restrict investigations into safety parameters for autonomous cars. Moreover, under Trump’s rule, the administration could stop interfering in the “absolutist concept of +freedom of speech+” that Musk applies to the X platform – predicts “FT”.

Trump himself has announced that if he wins the election, he will entrust the billionaire with the department of “government efficiency.”

China’s competition and Tesla’s future

Musk can count on the fact that his influence on the president and his administration will also prove helpful in the face of threats to his interests, such as growing competition from cheaper electric cars from China. According to the valuation of Albert Bridge Capital, the real value of Tesla is USD 70-100 billion, and the remaining USD 650 billion. the company’s market valuation is “investor optimism regarding yet unproven technologies” that are currently facing demanding tests from regulators – emphasized “FT”.

However, if Trump wins, Tesla may be able to count on a “more friendly approach from the federal administration.” And SpaceX’s revenues – according to forecasts by Morgan Stanley analysts – could triple by 2030 thanks to this approach by regulators.

Musk’s geopolitical influence

The FT’s chief foreign affairs commentator, Gideon Rachman, warned in September that Musk, given the scale of power and influence resulting from his position as the world’s richest man and control over extremely important technological infrastructure, is “an uncontrollable geopolitical missilethat may influence the development of events of global significance.

Rachman noted that Musk’s influence is visible from Kiev to Beijing, and the fact that he controls SpaceX, the Starlink satellite internet system and Tesla allows him to play a role in the war against Ukraine, in the economic rivalry of the US and China, and even – to some extent – in the war in the Gaza Strip. Moreover, owning website X gives him “a powerful megaphone through which he conveys his views.”

The US administration is concerned about many of the billionaire’s moves, but his companies have capabilities that even the US government does not have.

At the beginning of May, Axios wrote that Musk has some control over the world’s key infrastructure, and the global companies owned by the billionaire are not subject to any supervision. (PAP)

About LUC WILLIAMS

Luc's expertise lies in assisting students from a myriad of disciplines to refine and enhance their thesis work with clarity and impact. His methodical approach and the knack for simplifying complex information make him an invaluable ally for any thesis writer.