Elon Musk's $75M boost: Fueling Trump's campaign effort
As the presidential elections in the USA draw closer, Elon Musk is increasingly supporting Donald Trump financially and logistically. Many experts speculate that the billionaire aims to secure government contracts and favorable regulations for his companies this way, reports the British newspaper Financial Times.
5:32 PM EDT, October 21, 2024
The "Financial Times" noted, "The owner of Tesla, SpaceX, xAI, and X aspires to shape the future of humanity, with innovations like the Neuralink brain chip, home robots, driverless cars, and rockets for Mars colonization. Musk believes that if Trump wins, he (Musk) will gain significant influence over how the US government treats his companies."
It noted that Elon Musk has donated at least $75 million to Trump’s election campaign so far and is using his X platform to promote the former president and spread conspiracy theories aimed at discrediting his competitor, Kamala Harris.
On Sunday, Musk announced that until election day in the USA, he would give away a million dollars a day to one registered voter in key states who signs his political petition. Additionally, he plans to pay volunteers an exorbitant rate to mobilize Republican Party supporters to vote.
"We'll never get to Mars." Musk criticizes current US policy
The billionaire explains his preferences by emphasizing the necessity of introducing "sensible regulations." He argues that if the current trend of regulating his companies' activities continues, "we'll never get to Mars." "FT" noted that many of Musk's initiatives, such as self-driving cars and rockets, have faced scrutiny from regulators due to safety concerns.
Meanwhile, if Trump wins, SpaceX and Starlink could receive new contracts from the American security apparatus, and Tesla could gain support from Republicans who are generally skeptical of electric cars. Regulatory agencies might limit proceedings regarding safety parameters for autonomous vehicles. Additionally, under Trump's administration, there might be less interference with the "absolutist concept of freedom of speech" that Musk applies to the X platform, predicts "FT".
Trump has announced that if he wins the election, he will assign the billionaire to the Department of "Government Efficiency." Musk might expect to influence the president and his administration in ways beneficial to him, countering threats like growing competition from cheaper Chinese electric cars. According to Albert Bridge Capital, the real value of Tesla is $70-$100 billion, and the remaining $650 billion of its market valuation is due to "investor optimism about yet unproven technologies," which are currently facing rigorous tests from regulators, highlighted "FT".
However, if Trump wins, Tesla might expect "a more favorable approach from the federal administration." According to Morgan Stanley analysts' forecasts, SpaceX's revenues could triple by 2030 thanks to a more lenient approach by regulators.
Musk has influence from Kyiv to Beijing
"FT" chief foreign affairs commentator Gideon Rachman warned in September that Musk, given the power and influence his position as the world's richest man and his control over key technological infrastructure provide him, is a "ungovernable geopolitical missile that can influence developments of global significance."
Rachman noted that Musk's influence extends from Kyiv to Beijing. His control over SpaceX, the Starlink satellite internet system, and Tesla enables him to play a role in the war against Ukraine, the economic rivalry between the USA and China, and even to some extent in the Gaza Strip. Moreover, owning the X service gives him "a powerful megaphone to convey his views."
The US administration is concerned about many of the billionaire's actions, but his companies possess capabilities that the American government does not. In early May, the portal Axios wrote that Musk has some degree of control over key global infrastructure, and his globally reaching companies are not subject to oversight.
