Donald Trump recently became the 47th President of the United States which has seen the business fraternity debate on how it can help the major players among them being Elon Musk. Musk, the head of both Tesla electric car company and SpaceX rocket company, supports Trump and is already set up to gain from the new political America. But again with Trump’s victory , what are the particular benefits that Musk stands to enjoy during the Trump second term of presidency? Now let’s dive into how Tesla and SpaceX backed by Musk could operate and expand under Trump’s second term in office.
Source:Elon Musk Wants to Colonize Trump’s White House
The New Political Landscape: A Boost for Musk
Technology and business solutions presented by SpaceX and founded by Elon Musk have been popular for a long time. Supporting Trump also means that currently Musk can expect to gain from the President’s agenda and decisions. Most of Trump’s policies that benefit his campaign, such as deregulation, tax cuts, and support for private industries, will be advantageous for Musk. Under Trump’s leadership, Musk is expected to gain from:
- Reduced Corporate Taxes
Trump has also insisted that his administration is bent on cutting corporate taxes, a move that will affect Musk’s organizations such as Tesla and SpaceX. Tax breaks are also likely to increase the level of reinvestment, or the creation of new inventions and technological developments, to Musk’s favor for his businesses.
- Deregulation
Arguably one of the most frequently heard of campaign promises of Trump was his approach taken towards minimizing or ‘deregulating’ the government. From this shift in regulation, Musk, who has openly commented on and criticized what he perceives to be unfavourable government policies, has much to gain especially in fleets and electric vehicle (EV) manufactures and aerospace.
- Government Contracts for SpaceX
More so, as SpaceX advances in the field of spaceflight, it still needs governmental business bilateral with NASA and the Pentagon. Trump has so far embraced Musk’s vision and with his support, Musk could further extend SpaceX’s capabilities and services in satellite launches and space explorations and Defense contracts.
- Energy Policy
Despite Trump’s energy policies that support the use of fossil fuels, they could, in turn, help Musk and his electric car company, Tesla. , while Tesla is focused on the renewable energy market, efforts to scents push on energy independence and a favorable climate for energy business may support Tesla’s mission in the renewable power industry.
How Musk’s Companies Stand to Gain
Here’s a closer look at the various important areas in which Musk stands to benefit.
Tesla’s Growth
Tesla, Musk’s electric vehicle giant, is probably going to continue to grow. Deregulation and corporate tax cuts have been consistently supported by Trump’s administration, which helps Tesla’s operations and production. Some of the key benefits Tesla could experience include:
- Fewer Regulatory Barriers
Trump’s pro-business policies, especially with regard to the automotive industry, may eliminate some of the regulatory obstacles that Tesla and other electric vehicle manufacturers must overcome. This is just one of the main advantages that Tesla may enjoy. As a result, Tesla would find it simpler to increase production and launch new models more quickly.
- Increased Sales Potential
Tesla may gain indirectly from Trump’s policies, which center on boosting the economy and promoting consumer spending. Demand for Tesla’s high-end electric cars may rise as tax cuts and reduced interest rates increase consumer confidence, particularly among affluent consumers who stand to gain from tax breaks.
- Green Energy Incentives
Despite Trump’s frequently divisive views on environmental issues, Tesla may still profit from any government programs that promote green technology and energy efficiency. In a market that is favorable, Tesla’s solar energy and battery storage products may become more popular.
SpaceX’s Continued Success
Under Trump’s direction, SpaceX has already achieved significant progress, landing multiple government contracts and creating history with its private space missions. SpaceX has numerous opportunities to increase its influence now that Trump is in his second term.
