Elon Musk isn’t running for office, but you’d think he was with the way he’s made headlines in this U.S. election. By throwing support behind former President Donald Trump, Musk, the CEO of Tesla and SpaceX, is influencing the political conversation without being on the ballot. A Republican win could even see Musk gaining a government role, while a win for Democratic candidate Kamala Harris could, according to Musk, lead to his imprisonment — a joke he’s made about his position in the political arena.
But what’s really at stake for Musk? As the head of multiple major companies, the outcome of the election matters for his business interests, even if he doesn’t face a straightforward win-or-lose scenario.
Tesla’s Interests in the Balance
Tesla currently dominates the U.S. electric vehicle (EV) market, selling about half of all EVs in the country. Democrats traditionally support clean energy policies that benefit EV makers, but Musk’s support for Trump could still work in Tesla’s favour. If Trump removes certain subsidies for EVs, Tesla’s well-established lead over competitors, like General Motors, may actually strengthen as smaller companies struggle to keep up.
Regardless of the election’s outcome, demand for EVs is likely to continue growing. Plus, Tesla’s substantial market valuation of $785 billion is increasingly tied to futuristic projects, like autonomous robotaxis and humanoid robots, rather than EV sales alone.
The SpaceX Factor
From a space-exploration perspective, Musk has more to gain if Republicans take office. His dream of a Mars mission, spearheaded by SpaceX, faces hurdles under Democratic leadership, which he sees as less enthusiastic about interplanetary projects. However, SpaceX has strong ties with NASA, regardless of who’s in power. Since 2019, NASA has committed nearly $10 billion to SpaceX contracts, making Musk’s space endeavours hard for any administration to ignore.
Musk’s Potential Role in Government
Donald Trump has hinted at appointing Musk to lead a Department of Government Efficiency if he wins. But the role might not be the glamorous position it sounds like. To avoid conflicts of interest, Musk would likely need to step back from Tesla and SpaceX, which could impact Tesla’s stock value given how closely it’s tied to Musk’s leadership. Moreover, unlike the freewheeling control Musk has in his companies, a government role would involve the slower pace of Congressional negotiations, which might frustrate the billionaire.
Winning Attention, Regardless of the Outcome
One thing Musk has certainly won this election cycle is media attention. Tesla’s stock has risen by $300 billion since April, and internet interest in Musk has spiked since he voiced support for Trump in July. This boost in visibility is likely to benefit both Tesla and Musk’s social media platform, X (formerly Twitter), which has become his megaphone for political commentary.
While we wait to see who moves into the White House, there’s no question that Musk has already occupied plenty of space in the national conversation.
Source: (FT.com)
