With only a few days left until the U.S. Presidential Election, Elon Musk is frequently heard in America’s electoral and political landscape. The campaign of the former president of the United States considers this famous billionaire’s extensive financial support for Trump as a winning card in attracting independent voters and even some Democrats. Elon Musk has also claimed that he is supporting Trump solely to prevent the disasters caused by the domestic and foreign policies of the Biden-Harris administration from 2021 to the present, based on a sense of responsibility.
Elon Musk, one of the most prominent supporters of Donald Trump, has been praised by the former president. Trump told Newsweek, “He is an industrial leader born once in a generation, and our disorganized federal bureaucracy could certainly benefit from his ideas and efficiency.”
Musk, the CEO of Tesla and SpaceX, endorsed Trump on July 13 as his choice for the next President of the United States. Reports indicate that he has contributed over $132 million to the Pro-Trump political action committee, America PAC, with plans to donate an additional $1 million daily to incentivize voter registration in swing states. This level of investment suggests that Musk views Trump’s presidency as beneficial not only for his political interests but also for his business ventures.
Musk’s Shift Toward Republican Support
The mutual respect and admiration between Elon Musk and Trump have not always been present. According to Newsweek, in 2022, Musk posted on X that he “strongly supported Obama for president” in 2007 and donated thousands of dollars to Obama and Hillary Clinton, the Democratic candidate, that year. Donations to Clinton were made during her campaign in 2015, and Musk criticized Trump’s character in an interview with CNBC in 2016. Stating that he voted for Biden in 2020, his financial contributions since then have been to republican organizations, Although Musk said in 2021 that he “preferred to stay away from politics.”
Musk’s more explicit support for the Republican agenda seems to have emerged almost simultaneously with his acquisition of Twitter in November 2022. On November 7, he posted: “Given that the presidency is Democratic, I recommend voting for a Republican congress.” Before Trump’s official endorsement in July, Musk’s support for the Republican presidential candidate in March 20204 publicly appeared on X when he referred to Trump’s critics and said they were suffering from “Trump Derangement Syndrome.” Why has Musk invested so much money and effort behind Trump’s potential presidency? From similar approaches to deregulation to alignment of views, Tesla’s CEO may feel his multi-billion dollar investment in supporting Trump’s victory in November will pay off.
Musk on Deregulation and Space Policy
Elon Musk’s support for Donald Trump in the 2024 U.S. presidential election seems closely related to his desire for significant government deregulation, especially in space exploration. Musk has argued on multiple occasions that excessive regulations stifle innovation and hinder progress toward becoming a multi-planetary species- the main goal of his company, SpaceX. In a series of posts on X, Musk expressed his concerns about the impact of excessive regulation on America’s future in space. He said, “Voting for Trump is voting for Mars! Until we prevent quiet suffocation by excessive oversight in America, we will never become a multi-planetary civilization.”
Musk’s posts on this subject seem to stem from the regulatory hurdles that SpaceX has faced. These include delays in launch approvals and restrictions imposed by various federal agencies. He believes many of these regulations are outdated or unnecessary, hindering innovation in his companies and elsewhere. Musk claimed, “Unless significant reforms occur in government, laws, and regulations will get worse every year until every major effort, from high-speed rail between our cities to making life multi-planetary, is practically illegal.” Trump’s plans to reduce government oversight appear to align with Musk’s perspective.
Musk has proposed the creation of “Department of Government Efficiency” or DOGE (a nod to the joke about Dogecoin, which Musk supports). Musk suggested that such a department would oversee federal organizations to identify and eliminate unnecessary regulation. Dr. Micheal Breen, an associate professor at the School of Law and Government at Dublin City University, Ireland, told Newsweek, “With Trump’s rise to power, Musk may expect a more favorable regulatory environment for his investments, including Tesla and SpaceX. Like many Silicon Valley Billionaires, Musk resists any restrictions on his personal freedom.”
Tax Cuts and the Role of the Government
The alignment between Musk’s ambitions and Trump’s policy proposals is further highlighted by Trump’s suggestion to appoint Musk as “Secretary of Cost Reduction.” Such a role could qualify Musk for tax benefits worth tens of billions of dollars. According to a report from Rolling Stones, a provision included in the tax code could allow Musk to obtain one of the largest personal tax exemptions in U.S. history if Trump wins the 2024 election and Musk is appointed to this proposed government position. According to tax experts, a lesser-known provision in the tax code could allow Musk to indefinitely defer capital gains tax on any assets he must divest to comply with government ethical rules.
This special tax advantage, available only to federal officials, will be accompanied by significant tax exemptions that Musk can obtain, along with Trump’s new government program to reduce taxes for billionaires. Therefore, Musk, currently the richest person in the world with a net worth of $242.4 billion, could potentially have billions more in wealth if he were to hold a government position under Trump.
Elon Musk’s involvement in supporting Trump has sparked significant debate regarding the intersection of wealth, influence, and democracy. Musk’s substantial backing of Trump’s campaign and related efforts positions him as pivotal in shaping the electoral landscape. While some analysts have raised concerns about potential conflicts of interest, stating that Musk’s involvement could blur the lines between public service and personal gain, others see his engagement as a catalyst for political mobilization. Prominent voices in the political sphere have weighed in on Musk’s role. Former White House Chief of Staff Mark Meadows remarked, “Elon brings a unique perspective to the table- one that can energize voters who feel disenfranchised.” As Election Day draws near, the effectiveness of Elon Musk’s involvement remains uncertain. Whether Muck can translate his influence into tangible electoral gains for Trump will depend on how voters weigh his controversial persona against their priorities at the ballot box.
Musk’s Path to Trillionaire Status After the U.S. Election
As of November 16, 2024, Elon Musk’s net worth is estimated to be around $314 billion, reflecting a substantial increase of approximately $50 billion since Donald Trump’s election victory on November 5. This surge in wealth is primarily attributed to a $28 rise in Tesla’s stock price, which has been buoyed by investor optimism regarding potential favorable policies under Trump’s administration. Tesla’s market valuation surpassed $1 trillion during this period, making a significant milestone for the company and contributing to Musk’s financial gains. If Musk continues to maintain a close relationship with Trump, analysts predict that his net worth could further increase. The expectation of reduced regulatory oversight and quicker access to the government contracts may positively impact Tesla’s operations and profitability, potentially positioning Musk to become the world’s first trillionaire in the coming years.
Please let us know in the comments:
- Do you believe Elon Musk’s support for Trump will significantly impact the election outcome?
- Do you think Musk’s support for Trump will redefine the role of billionaires in politics, or is it just a temporary trend in the current political climate?
Elon Musk has taken a big risk by supporting Trump. If Harris gets elected, it could lead to significant repercussions for him and his businesses. The political landscape is unpredictable, and this gamble might end up costing him dearly.
He very clearly supports Trump, if he had a wrong prediction..
It was a very interesting article …..