Elon Musk's Empire hung on the hair. Donald Trump can set up a billionaire loop on the neck. “The situation will reverse”
The richest man in the world for 130 days headed the Department of Government Efficiency (DOGE), taking a very privileged position. His companies could derive virtually unlimited profits when Elon Musk himself introduced convenient regulations.
Now the powerful federal bureaucracy, which Musk tried to eliminate, can be used against him with all power. Donald Trump does not take prisoners, especially when his “great, beautiful law”, i.e. a draft budget on which the fate of Republicans in power depends on the table. The open and fierce criticism of Musk for this project awakened the worst demons in mutual relations – and directly threatened the billionaire empire.
“It's a real soap opera,” says Steve Sosnick, a Wall Street veteran who works as the main strategist in the Interactive Brokers investment company.
– Many people perceived this relationship as a potentially explosive, but the pace and violence with which the explosion occurred are really amazing – he adds.
The dispute between Musk and Trump has already caused a decrease in the value of Tesla's billions of dollars. A company producing electric cars apparently a bumpy road is waiting for.
Tesla is the foundation of Musk's business interests. This company helped electric cars enter the mainstream market in the United States. Its owner has a vision of dominance on the autonomous taxi market. However, the company's fate is largely in the hands of the regulatory bodies of the Department of Transport, Treasury and Trade.
Before the start of the second term of Trump, the National Road Safety Administration of the Transport Department initiated an investigation into serious reservations regarding the construction of Tesla cars. It was mainly about a set of automatic speed limiting technology and lane maintenance.
The agency examines safety issues for car manufacturers and It can order cars to be withdrawn from the market with defects. Earlier, Tesla could count on milder treatment thanks to Trump's favor – The situation will reverse now.
Musk is also very interested in the technology of autonomous vehicles and has a lot of interest in its wider use. Early actions of the Transport Department seemed to be in line with Musk's interests. He was about reducing the requirements for reporting some accidents involving cars without drivers. It can change now.
Tesla also uses the packet of pure energy policies, including a tax allowance of $ 7,500. for the purchase of electric vehicles. Republicans now want to bear it as part of the “great, beautiful law”, which caused a conflict between Musk and Trump.
Tesla also stands in the face of an additional threat from the proposal of the trade department from the beginning of this year regarding the imposition of customs duties of up to 721 percent. for batteries from China.
“The Great, Beautiful Act” also threatens the rapid abolition of tax breaks, which are of key importance for the Tesla department dealing with the production and storage of solar energy, whose annual revenues have recently increased by 67 percent. In terms of year to year, reaching $ 10 billion. (approx. PLN 37 billion PLN 620 million, counting at the current exchange rate)
Spacex has already lost in space?
Trump's most direct threat against a billionaire appeared in a recent Truth Social post, in which the president considered the possibility of cutting government contracts concluded with Musk.
Trump called this “the easiest way to save money in our budget.” The president added that “he was always surprised that Biden did not do it.” This threat can have two effects.
Donald Trump (illustration photos)
According to public data on federal expenditure over the past 18 years, the SpaceX company itself has received at least $ 20.9 billion. (approx. PLN 75 billion 580 million, counting at the current exchange rate) under government contracts, mainly from NASA and the Department of Defense. Most of these funds have been awarded in the last five years.
However, the government is also dependent on Muska. The Pentagon consists of SpaceX Muska rockets in the field of fast and cheap flights into space. It is unlikely that Muska's greatest competitors are able to fill this gap.
Spacex Muska has already obtained federal contracts for seven of the nine planned by the United States of $ 845.8 million. (approx. PLN 3 billion 181 million 970 thousand, counting at the current exchange rate). TOh, however, it may change.
Starlink and X
Starlink, SPACEX SPECIAL COMPANY dealing with satellites, is applying for billions of dollars of subsidies on broadband internet. The US Department of Trade Department will make decisions in this matter. His favor towards the billionaire has just questioned.
Musk publicly promoted the terminals of Satellink satellite communication as a solution to problems with communication technology, the billionaire counted on changes in regulations that could help expand Starlink, such as releasing the wireless band for satellite service providers. Trump's administration can seriously make it more difficult for him.
As for X, the American Federal Trade Commission is responsible for enforcing the settlement concluded in 2011 with Muska dealing with social media – then her name was Twitter and had another owner – on a violation of data security.
The order was updated in 2022, when the company had to pay $ 150 million. (approx. PLN 564 million 310 thousand, counting at the current exchange rate) fine for violation of the original contract. The order requires periodic audit of X practitioners in the field of privacy and security, and violations may result in an extension of the settlement order, as well as additional fines. It is a salt in Musk's eye since taking over the company. Subsequent penalties for X. are not excluded.
Neuralink needs government help
Musk, the company Neuralink, dealing with brain implants, has obtained several key federal permits enabling testing of its technology, but ultimately She will need the consent of the Food and Medicine Agency (FDA) to make her chip hit the market.
Neuralink informed in May that he had received a groundbreaking device from the FDA to restore communication ability to people with serious speech disorders caused by various neurological diseases or paralysis. This status provides the company with faster access to the Agency's opinion and accelerates the assessment process.
Although FDA commissioners have historically avoided interfering with product reviews, The head of the agency may request the imposition of conditions for approval of neuralink, such as the requirement to carry out tests after introducing the product to the market.
