TechFlow news, November 7 — According to Fortune, Tesla and SpaceX CEO Elon Musk has invested over $130 million to support Donald Trump's presidential campaign, a move that could yield substantial returns for his business empire.
During his victory speech, Trump highly praised Musk’s SpaceX and its Starlink satellite internet project, suggesting these ventures might secure government contracts. Trump also stated he would create a new “Department of Government Efficiency” in his administration at Musk’s request.
Analysts believe Musk’s support for Trump may be driven by the following considerations:
1. Regulatory relief: Trump has pledged to reduce regulations, which could benefit multiple Musk enterprises.
2. Securing government contracts: Over the past decade, SpaceX and Tesla have received at least $15.4 billion in government contracts.
3. Influencing policy-making: Regulations concerning rocket launches, autonomous driving, and artificial intelligence.
4. Protecting subsidies: Such as tax credits for electric vehicles.
Shares of Musk’s companies have already risen, with Tesla’s stock surging 15% following Trump’s victory speech. Industry insiders suggest Musk’s political backing is part of a broader strategy to secure a more favorable regulatory environment and increased government subsidies for his companies.
