Tesla CEO Elon Musk could gain significant advantages if former President Donald Trump returns to the White House, reports NBC News. Musk, who is openly supporting Republican presidential candidate Donald Trump, the report says, could also play an influential role in a second Trump administration.
Brian Hughes, a Trump campaign senior adviser, told NBC News that Trump wants Musk to lead a “commission” that will “ensure our government works more efficiently and uses America’s taxpayer dollars effectively.” “As President Trump has said, Elon Musk is a genius, an innovator, and has literally made history by building creative, modern, and efficient systems,” he added.
Donald Trump’s tax cuts may favor Musk
Trump has been open about his intent to maintain low tax rates for corporations and wealthy individuals like Musk. During his previous tenure, he lowered the corporate tax rate from 35% to 21% in 2017. In April, he told wealthy donors in Palm Beach, Florida, that he hopes to extend the tax cuts from his prior administration.
While tax burdens for individual corporations and high earners vary depending on deductions and tax strategies, Trump’s plan would keep a reduced rate for the highest-income earners, with his 2017 law having lowered the top income tax rate from 39.6% to 37%. According to a September report by the Center on Budget and Policy Priorities, extending Trump’s tax cuts for another 10 years would direct 41% of the benefits toward high-income households through rate cuts, special deductions, and inheritance tax reductions. (The Trump campaign has not yet responded to the report.)
Trump presidency may ease regulatory pressure on Musk’s empire
With Trump being elected as US president for the second term, Elon Musk’s SpaceX is projected to keep securing billions annually in government contracts, including deals with the Defense Department and NASA. SpaceX remains NASA’s sole option for transporting astronauts to and from the International Space Station, as Boeing’s Starliner spacecraft faces ongoing issues.
Elon Musk has engaged in at least 19 regulatory and legal disputes with the Biden administration and federal agencies over recent years, NBC News reports. These 19 cases involve 12 different government entities and cover a range of issues—from environmental concerns at a SpaceX launch site near a Texas wildlife refuge to alleged racial harassment at a California Tesla factory and Tesla’s marketing of its driver-assistance software as “full self-driving” despite needing human oversight.
Beyond his business empire, Musk’s America PAC is also facing legal challenges, including one with Philadelphia District Attorney Larry Krasner over $1 million daily prize giveaways by the PAC. On Monday, a judge refused to block the cash prizes.
Angela Aneiros, a law professor at Gonzaga University and co-director of its Center for Law, Ethics & Commerce said “A second Trump term could reshape the regulatory landscape in ways that benefit Musk’s companies,”. If Trump returns, she added, federal agencies may shift away from investigating regulatory compliance and prioritize issues like immigration enforcement instead.