Elon Musk has built a massive business empire, encompassing companies like Tesla, which leads in electric vehicle production, the social media platform X, the AI startup xAI, Neuralink—a company working on mind-computer interfaces, the tunneling firm Boring Company, and the aerospace giant SpaceX.
It’s no secret that some of these businesses thrive on federal contracts. In fact, SpaceX alone has secured over $19 billion from such contracts, as reported by FedScout. If Trump wins reelection, the potential for even more financially rewarding contracts seems likely. Geoff Orazem, the CEO of FedScout, suggests that SpaceX is poised to rake in billions annually from prime government contracts for the foreseeable future.
Despite often criticizing the government for hindering innovation, Musk could potentially seek less regulation for his businesses. This month, in a move that raised eyebrows, Trump enlisted Musk and former Republican presidential contender Vivek Ramaswamy to spearhead a group aimed at streamlining government processes—dubbed the Department of Government Efficiency, or DOGE.
In an op-ed for the Wall Street Journal, Musk and Ramaswamy outlined DOGE’s mission, which focuses on three main reforms: cutting regulations, reducing administrative bloat, and saving costs. They argued that many existing federal regulations lack congressional approval, suggesting that Trump could eliminate them through executive orders. Additionally, they advocated for extensive auditing of governmental agencies, particularly pointing to the Pentagon’s failure to pass audits year after year.
“Under a Trump administration, Musk and his companies could largely benefit from deregulation,” commented CNBC technology journalist Lora Kolodny, “effectively diminishing the resources of federal agencies that oversee his ventures.”
For more insights on how Musk might leverage his influence with the next president, watch the accompanying video.
