How Trump’s Presidency Could Clear the Path for Elon Musk’s Ventures

Elon Musk has shown strong support for Donald Trump’s 2024 presidential bid. Musk’s major ventures, including Tesla, SpaceX, and X (formerly Twitter), are currently facing various legal and regulatory challenges.

After an attack on Trump two weeks ago, Musk publicly endorsed Trump for the upcoming election.

Musk’s support intensified after Trump selected JD Vance, a U.S. Senator from Ohio with ties to Silicon Valley, as his running mate.

Musk even launched a political action committee aimed at promoting meritocracy and individual freedom, which he now associates with Republican values.

A second Trump presidency could benefit Musk in several ways. Trump’s proposed tax cuts for corporations and individuals are a significant advantage.

According to the source, Musk’s businesses could see relief from federal regulations under a new administration.

Michael Gerhardt, an administrative law expert, noted that Musk’s support for Trump might be viewed as an investment in removing government interference from his businesses.

Musk’s six companies are subject to various federal regulations, which could be eased with Trump in office.

Recent Supreme Court decisions have already made it tougher for federal agencies to enforce regulations.

With Trump as president, he could further reduce regulatory obstacles by issuing executive orders and making key appointments within federal agencies.

Musk’s companies, including Tesla, SpaceX, and Neuralink, are under federal scrutiny. For instance, Neuralink faces rigorous regulations, while SpaceX and Tesla are involved in investigations and lawsuits.

Trump could potentially end these investigations, change regulations, and even direct agencies to drop lawsuits against Musk’s ventures.

Environmental concerns are also at play. Musk’s plans for new factories and towns in Texas have led to environmental issues.

Supreme Court rulings have weakened the Environmental Protection Agency’s (EPA) ability to enforce environmental protections.

Under Trump, the EPA could relax regulations further, making it easier for companies to challenge environmental rules.

Jillian Blanchard, an environmental lawyer, pointed out that federal rules like the National Environmental Policy Act (NEPA) require extensive environmental analysis before major construction projects.

Trump’s presidency could lead to looser enforcement of these regulations, easing the permitting process for companies.

Despite these potential benefits, some independent agencies, such as the Securities and Exchange Commission (SEC), have statutory independence from the executive branch. Trump’s control over these agencies would be limited.

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However, if Republicans dominate Congress, they could pass laws granting the president more power over independent agencies, potentially influencing ongoing investigations, like the SEC’s probe into Musk’s Twitter purchase.

Even if federal agencies become less active in enforcing laws, private citizens can still pursue legal action to ensure compliance. Blanchard noted that this shifts the enforcement burden to less-resourced individuals.

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