Trump's first move upon taking office—targeting Musk?

By Cora Xu

Edited by Evan Manman Zhou

In Silicon Valley, few would dare to risk their reputation and resources as boldly as Elon Musk in backing a presidential candidate.

Luckily for him, in the race for the 47th U.S. presidency, this loyal champion successfully escorted Donald Trump all the way to the "throne." On election night, Trump openly praised and thanked Musk for his contributions, even reserving a full five-minute exclusive advertising slot for SpaceX.

Now that the U.S. election outcome is settled, why was Musk so eager to push Trump into office? What benefits will he gain from this electoral gamble? And will Trump’s presidency truly grant Musk a “get-out-of-jail-free card”?

After the noise fades, we can perhaps calmly assess how this Silicon Valley superstar meticulously strategized, fully committed, and carefully concluded what may be the most audacious political investment of his career. This election once again reveals Musk’s sharp instincts and precise judgment across political, economic, and social domains.

Musk has traded an all-in political bet for a golden 12-year development window for his business empire.

Musk campaigns for Trump in Pennsylvania. (Photo source: AP)

01 A Cornered Musk Desperately Needed a New President

In the latest 2024 Forbes Global Billionaires List, Musk secured second place globally and first in the U.S., with a net worth of $195 billion.

Musk’s wealth primarily consists of two components: company shares and cash/other assets. The valuation of his stakes in companies forms the core of his fortune—most notably Tesla (autonomous driving), SpaceX (commercial spaceflight), X (social media), Neuralink (brain-computer interface), and The Boring Company (tunnel construction).

At first glance, owning dominant positions across multiple industries should make Musk invincible. Yet, reviewing the performance of these companies over the past year reveals that many have hit developmental bottlenecks—core businesses are growing slowly, while innovative ventures are stalled or delayed. Crucially, resolving these issues repeatedly leads back to one entity: the U.S. government.

1. Tesla – Autopilot: Easing Safety Regulations Could Accelerate Robotaxi Commercialization

Tesla, once the pioneer in autonomous driving, has faced investigations from the U.S. Department of Justice and the National Highway Traffic Safety Administration due to 11 accidents involving its Autopilot and Full Self-Driving features, affecting 765,000 vehicles.

Additionally, Tesla is entangled in union disputes initiated by the National Labor Relations Board and racial discrimination lawsuits filed by the Equal Employment Opportunity Commission. It's clear that Tesla remains under intense scrutiny from federal regulators.

Moreover, during the Biden administration, Tesla received little support—it was excluded from U.S. clean energy subsidy programs and not invited to the White House EV summit. This underscores the strained relationship between Musk and the federal government.

Meanwhile, both Tesla’s autonomous driving initiatives and its newly launched Robotaxi service require strong governmental backing to scale further.

Source: The New York Times

2. SpaceX – Trump Could Boost Mars Colonization and Speed Up Starlink Expansion

SpaceX also faces strict regulatory hurdles. The Department of Justice is suing SpaceX for alleged refugee discrimination in hiring; a regional office of the National Labor Relations Board has filed complaints over the illegal termination of eight employees; the Federal Aviation Administration imposed a civil penalty of $633,009; and the Federal Communications Commission voted against including Starlink in rural broadband funding programs.

"They took every contract they could get," Musk angrily said in an interview.

Clearly, SpaceX’s growth depends heavily on relaxed regulations—especially for multi-state Starlink pilot programs and expanded service coverage.

Musk has long dreamed of colonizing Mars, which requires deeper cooperation with the U.S. government. He stated in interviews that his Mars colonization vision could only become reality under a Trump presidency. Trump responded enthusiastically: "I want him to send rockets to Mars. He promised me they’ll land before my term ends."

3. Social Media Platform X – Content Regulation Authority Shifts to Companies, Emphasizing Free Speech

During the Biden era, tensions between the U.S. government and Musk’s X platform centered on free speech rights, content moderation policies, and the influence of tech platforms. Biden also pushed for reforms to Section 230 to curb illegal online speech.

In contrast, Trump strongly advocates for free speech. Whether through launching his own social platform Truth Social, or his campaign rhetoric and policy messaging, Trump consistently favors transferring content moderation authority to private companies rather than allowing government oversight.

4. Neuralink – Faster FDA Approvals Could Expedite Product Launches

As an invasive brain-computer interface project, Neuralink has been subject to comprehensive and stringent reviews by U.S. authorities.

The U.S. Department of Agriculture investigated Neuralink’s animal testing practices to determine compliance with minimum standards under the Animal Welfare Act. The Department of Transportation launched another probe following requests from animal welfare groups, citing “careless and unsafe” transportation of experimental materials that might involve risks of pathogen spread. Additionally, the animal protection group PCRM sued Neuralink, accusing it of “abusing” monkeys.

Neuralink initially sought FDA approval for human trials in early 2022 but was rejected. Only after more than a year did it receive clearance. In January 2024, Neuralink successfully completed the first human implantation of its Telepathy device.

5. The Boring Company – Reviving the “Hyperloop,” Building Underground Transit Systems

You might find it hard to believe that The Boring Company—one of Musk’s “least exciting” ventures—has operated just 2.4 miles of tunnel in seven years. This falls far short of Musk’s original vision: a vast, multi-stop underground transit system enabling driverless cars to travel at 150 mph. Effectively, The Boring Company serves as infrastructure support for the Robotaxi initiative.

While Robotaxi nears readiness, tunnel construction lags behind. The Baltimore–Maryland Loop Tunnel project faced widespread complaints and protests. Projects in California, Illinois, Texas, Florida, and Maryland have all stalled or collapsed.

Therefore, compared to Musk’s other ventures, The Boring Company relies even more heavily on government support.

According to an NBC investigation, in recent years Musk and his sprawling business empire have been involved in at least 19 regulatory or legal disputes with the Biden administration, with 10 cases still ongoing. Since 2022, many projects have progressed more slowly under the Biden administration’s tight regulatory environment.

A Tesla executive once publicly urged Musk on X to return to company operations, subtly suggesting that Musk had diverted too little attention to daily management. In hindsight, Musk may have assessed all his companies’ challenges and decided to tackle their common root cause—the U.S. government.

02 Going ALL IN: Musk’s High-Stakes Political Bet

It’s unclear exactly when Musk began planning this electoral investment, but early signs emerged when he acquired Twitter for $44 billion.

His very first move as owner was lifting the ban on Trump’s account. Many analysts believe this marked the opening gambit in Musk’s election strategy.

Undeniably, social media platform X (formerly Twitter) remains a central battleground in U.S. elections. Musk inviting Trump for a live session on X carried strong symbolic weight—almost like rolling out the red carpet.

But the moment Musk truly stepped into the political spotlight and committed fully came in July 2024, after the attempted assassination of Trump, when Musk publicly endorsed Trump as the next president.

Merely endorsing a candidate wouldn’t demonstrate true commitment—many Silicon Valley figures do that. Musk’s boldest step was stepping onto Trump’s rally stage.

By incomplete count, Musk attended at least three Trump rallies, repeatedly praising the benefits of a Trump presidency and even chanting: "Trump! Trump! Vote! Vote!" In Pennsylvania—a crucial swing state—he appeared alongside Trump, emphasizing Trump as the sole candidate capable of “preserving American democracy.” Musk also held a separate event in suburban Philadelphia to support Trump.

Photo source: Foreign Policy

At this point, Musk had firmly tied his fate to Trump’s. As he joked himself: "If Harris wins, I’m finished. Do you think I’ll ever see my kids again?"

Beyond public appearances, Musk leveraged his personal resources to the fullest in this high-risk investment.

First, spending big to boost the “America First” campaign. Musk established a political action committee, America PAC, dedicated to supporting Trump, and donated at least $132 million to Trump’s campaign. This included $56 million to Trump and other Republicans.

Not to mention, Musk spent $15 million offering cash incentives to voters in swing states—$1 million per day for 15 days to those who voted for Trump. While $15 million may seem modest for Musk and relatively small in electoral terms, this bold tactic made headlines nationwide, cementing public awareness of Musk’s unwavering support for Trump.

Photo source: WDSU

Second, leveraging elite networks. For example, Musk joined forces with close friend and top investor Nelson Peltz to pledge allegiance to Trump. Together, they mobilized influential business leaders across the country, persuading them not to back incumbent President Biden. The effort proved effective—PayPal co-founder Peter Thiel and venture capitalist David Sacks, both Musk allies, publicly supported Trump during the campaign. Ultimately, Biden withdrew and backed Harris as the Democratic nominee.

To secure Pennsylvania’s critical votes, Musk frequently hosted town halls in the state, personally highlighting his pivotal role in the election, while sharing early voting data and election-related posts on X.

He also deployed his advisory team to assist Trump’s campaign in Pennsylvania, using strategic messaging to sway voter sentiment—helping Trump clinch the decisive 19 electoral votes.

If we view this election as Musk’s investment in Trump, he embodies the ideal investor: massive capital infusion, full resource backing, leveraging personal influence for promotion, providing expert advisory support, and refraining from interfering with Republican policy proposals.

Musk, trapped by challenges across his enterprises, bravely wagered his entire fortune, choosing to rise and fall with Trump.

One key observation: despite appearing to go “all in,” Musk didn’t completely burn his bridges.

His biggest insurance plan? Kamala Harris. Harris has generally taken a more open and accommodating stance toward innovation and tech startups. She tends to favor balanced regulation that supports innovation. Even if Harris had won, Musk likely wouldn’t face stricter regulation than under Biden.

Entering the arena boldly, precisely gauging societal and political currents, balancing interests, and pursuing victory—Musk has personally demonstrated how to win big in Silicon Valley’s wildest gamble.

03 Stepping Back: Musk Wins the Next 12 Years

Like any startup awaiting resolution, tech giants in Silicon Valley were waiting for the election results.

The returns on this electoral investment may exceed even Musk’s expectations.

First, Trump defeated Harris decisively—winning both the Electoral College and popular vote, finishing with 277 to 226 electoral votes.

Second, Republicans gained majorities in both the Senate and the House, giving Trump significant legislative influence—achieving unified control of the executive and legislative branches.

Third, the current Supreme Court justices serve lifetime appointments, and most were appointed during Trump’s first term as conservative picks—effectively making them aligned with his agenda.

Thus, Trump’s second term amounts to control over all three branches of government, wielding immense influence and decision-making power.

Many optimistically predict that if Trump governs steadily, wins re-election, and helps install a successor, Republican dominance could last up to 12 years.

For Musk, this translates into a 12-year golden era for his business empire—coinciding with a boom in emerging technologies and favorable market conditions.

The more successful one becomes, the more cautious they act—and this is evident in Musk’s behavior post-election. As of publication, Musk has posted only a brief congratulatory message to Trump on his own platform, remaining otherwise silent. Compared to his aggressive campaigning, Musk has now withdrawn quietly, concealing his achievements and stepping into the shadows.

But does Musk truly face no conflict with Trump’s new administration? Not quite.

The first issue lies in regulation. If Trump fulfills his promise to appoint Musk as the first head of a proposed National Efficiency Council—to cut government spending—how will Musk regulate himself and others? This presents a thorny ethical dilemma. Musk hasn’t shied away from potential conflicts of interest, openly stating he hopes Trump will reduce regulations to directly benefit his businesses.

Second, there’s a conflict of interest between Musk’s global investments and Trump’s tariff policies—an ongoing risk for his companies.

Trump clearly won’t let Musk operate unchecked. He hinted before the election that Musk would be his “cost-cutting minister” but “would not join the Cabinet.” Musk anticipated this, noting in an interview: “The White House will adopt different policies toward different people.”

Now, the political battle between Harris and Trump is over—but Musk’s game with Trump has only just begun.