Musk's Wins and Losses Under Trump's Watch

Elon Musk's companies have seen a mix of gains and setbacks since the Trump administration took office. Some government investigations into his businesses have slowed down or stopped. This has given Musk's firms, especially SpaceX, a chance to get billions in new government contracts. On the global stage, Musk is making deals and getting approvals to operate in other countries, often with the Trump administration's support. Musk's personal wealth has also grown significantly. His net worth is now 419 billion dollars, up from 249 billion dollars just a few months ago. Tesla's stock price has dropped by 20% since Trump returned to the White House, but it's still 35% higher than it was in mid-July 2024. SpaceX is now valued at 350 billion dollars, nearly double what it was worth around the time of Musk's endorsement. And his third largest company, xAI Holdings, was valued at 113 billion dollars in its recent merger, more than triple what the two firms were worth a year ago. Critics argue that Musk's involvement in DOGE and his relationship with the president are benefitting him financially. They point out that Musk's businesses rely heavily on government contracts, creating potential conflicts of interest. Trump and Musk, however, deny these claims. They insist that Musk's companies face significant challenges and that there are no conflicts of interest. Despite the benefits, Musk's companies are not without problems. The administration's tariffs will likely increase supply chain costs for Tesla, SpaceX, and xAI. Tesla's sales have been slumping due to consumer backlash against Musk's activities with the Department of Government Efficiency. A recent poll found that 58% of Americans have an unfavorable opinion of Musk. Protesters, including vandalizers and arsonists, have targeted Tesla dealerships and showrooms. Musk has taken this blowback personally, acknowledging the damage to the Tesla brand. In January, Trump signed an executive order that halted a Department of Labor investigation into alleged workplace discrimination at Tesla's factories. In March, Trump encouraged Americans to buy Tesla cars during a sales pitch from the White House lawn. However, the future of Tesla's autonomous vehicles remains uncertain. The National Highway Traffic Safety Administration is still investigating Tesla's self-driving features, and the Transportation Department recently eliminated a requirement for automakers to report certain types of non-fatal crashes. This change benefits Tesla but hurts competitors like Waymo.

SpaceX is also finding relief under the new regime. The Department of Justice dropped a lawsuit over SpaceX's hiring practices, and the National Labor Relations Board moved to terminate its own lawsuit against SpaceX. SpaceX is already a major U. S. contractor and is primed to receive more federal dollars. Musk's rocketmaker is reportedly a front runner to help build Trump's desired ‘Golden Dome’ defense shield, a multi-billion-dollar contract with the Pentagon. Starlink, which accounts for roughly two-thirds of SpaceX's revenue, is getting a direct assist from Trump officials. The State Department and U. S. embassies have pushed nations to clear hurdles for U. S. satellite companies, often mentioning Starlink by name. In smaller African countries, U. S. diplomats have pressed governments to fast-track licenses for Starlink and arranged conversations between company employees and foreign leaders. Closer to home, Starlink could secure a new contract from the Federal Aviation Administration. Meanwhile, xAI, Musk's artificial intelligence startup, is positioning itself for government contracts as it builds a government-focused business. Musk's DOGE is already using GROK in its government work and pushing staff at the Department of Homeland Security to use it. Musk's AI company, which is building a massive supercomputer in Memphis, could also benefit from a weakened Environmental Protection Agency. The EPA is embarking on what it calls the “biggest deregulatory action in U. S. history. ” Last fall, the EPA began looking into xAI and its use of temporary gas turbines, which it has been accused of operating without proper permits in violation of the Clean Air Act. Even Musk's smaller companies are seemingly benefitting. In January, as part of a broader purge of inspectors general across federal agencies, Trump fired the inspector general of the Agriculture Department, whose office had been investigating Neuralink, Musk's controversial brain implant startup, for alleged mistreatment of animals. The Boring Company, Musk's tunneling startup, is in talks with the Federal Railroad Administration about participating in an $8. 5 billion Amtrak project. During Trump's visit to the Middle East last week, Musk tagged along, and business deals followed. Saudi Arabia agreed to introduce Starlink to its maritime and aviation sectors, and Abu Dhabi said it would be performing a clinical trial with Neuralink.

Actions