- Tesla CEO Elon Musk is deepening his political ties with US President-Elect Donald Trump, joining calls with world leaders and making significant financial contributions to pro-Trump groups.
- Musk's businesses, including Tesla, Neuralink, and SpaceX, heavily depend on government regulation, subsidies, or policy.
- Musk's political influence could potentially benefit his companies through favorable policies and regulations.
- However, his overt support for Trump could alienate customers and shareholders, and distract him from his primary role as CEO.
In a recent development, Tesla CEO Elon Musk has been seen deepening his political ties, particularly with US President-Elect Donald Trump. This came to light when Musk joined a call between Trump and Google boss Sundar Pichai.
The call was initiated by Pichai to congratulate Trump on his victory in the race to the White House. Musk's presence on the call was confirmed by a report from The Information.
This is not the first time Musk has been associated with Trump. Prior to the November 5 Election Day, Trump had revealed that he had spoken to Apple CEO Tim Cook about the financial penalties imposed by the European Union on the iPhone maker. Musk was reportedly present during this conversation as well.
Musk's Growing Association with Trump
Musk's association with Trump has been growing stronger over time. Reports suggest that Musk has been a constant presence at Trump's home in Florida. He has also been involved in telephone calls with world leaders and has been dispensing advice on personnel choices both directly and publicly through X, the social media platform he bought in 2022.
Musk's support for Trump is not just limited to advice and presence. He has also made significant financial contributions to pro-Trump spending groups. According to a Reuters report, Musk contributed at least $119 million to a pro-Trump spending group.
This contribution is part of a wider strategy to insulate his companies from regulation or enforcement and boost their government support. Musk's business interests, which include Tesla's electric cars, Neuralink's brain chips, and SpaceX 's rockets, depend heavily on government regulation, subsidies, or policy.
Implications of Musk's Political Ties
Musk's political involvement is not new. In the past, he has been known to endorse political candidates and has been a frequent speaker for Trump during the waning days of his campaign. He spent election night with the president-elect at his Mar-a-Lago club in Florida.
Musk's political ties and his influence on the Trump administration could have significant implications for his businesses. His companies, particularly Tesla and SpaceX, could potentially benefit from favorable policies and regulations.
In the past, business leaders have often used their influence to shape policies in their favor. For instance, during the Obama administration, several tech leaders including Apple's Tim Cook and Facebook's Mark Zuckerberg were known to have close ties with the White House. They used their influence to advocate for policies favorable to the tech industry, such as net neutrality and immigration reform.
However, Musk's close ties with Trump could also pose risks. His overt support for Trump could alienate customers and shareholders who oppose Trump's policies. Moreover, his involvement in politics could distract him from his primary role as the CEO of Tesla and SpaceX.
