How Elon Musk stands to cash in on Trump’s presidential victory

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Tesla CEO Elon Musk (R) joins former U.S. President and Republican presidential candidate Donald Trump during a campaign rally at the site of his first assassination attempt in Butler, Pennsylvania, on Oct. 5, 2024.
Jim Watson | Afp | Getty Images

As Donald Trump celebrated his presidential victory early Wednesday morning, Elon Musk was right there with him.

“A star is born. Elon,” Trump said onstage at his Mar-a-Lago resort, thanking the world’s richest person for spending two weeks campaigning in Pennsylvania.

Musk, who poured at least $130 million into a pro-Trump campaign effort, turned Trump support into yet another full-time job in recent months, funding a swing-state operation to register voters and using his social media platform X to constantly tout his preferred candidate, frequently with misinformation.

Musk’s investment in Trump is already paying off, even though Trump doesn’t take office until Jan. 20.

Tesla shares soared 15% on Wednesday, adding roughly $15 billion in paper value to Musk’s net worth. The electric vehicle maker faces headwinds in the global market from China-based competitors, declining European sales and consumers’ growing distaste for his political views.

But with Musk cozying up to Trump, and the president-elect promising to slash the types of regulations that Musk abhors, Wall Street is betting Tesla, on balance, will be a beneficiary.

For Musk, the potential gains go well beyond Tesla.

During his victory speech, Trump also praised Musk’s SpaceX and thanked Musk for delivering Starlink Wi-Fi terminals to Hurricane-stricken parts of the U.S. That all leaves Musk with plenty of reasons to be optimistic that a second Trump administration will pay healthy dividends to him and his businesses.

Musk’s companies are currently embroiled in a range of probes and lawsuits from federal agencies pertaining to matters including alleged securities law violations, workplace safety, labor and civil rights violations, violations of federal environmental laws, consumer fraud and vehicle safety defects.

Given the executive branch’s outsized control over federal regulatory bodies, Musk can look forward to regulators and intelligence agencies winding down some or all of the 19 known ongoing federal investigations and lawsuits against Tesla, SpaceX and X, formerly known as Twitter.

At New York’s Madison Square Garden on Oct. 27, Musk was one of many Trump fans and surrogates to speak during an all-day rally. Much of the coverage of the event focused on comedian Tony Hinchcliffe’s bigoted quips, including his description of Puerto Rico as a “floating island of garbage.”

Musk was introduced by Cantor Fitzgerald CEO Howard Lutnick, who called the Tesla CEO the “greatest capitalist” in U.S. history. Lutnick said he and Musk were co-founders of the envisioned “Department of Government Efficiency” and he asked Musk how much he thought could be cut from the federal budget.

Musk answered “at least $2 trillion,” which is more than the federal government’s discretionary budget of $1.7 trillion. The remark received a scream from Lutnick and applause from the crowd.

Musk didn’t specify what he sought to cut, but he previously accused agencies including the SEC, Environmental Protection Agency and Federal Aviation Administration of regulatory overreach or infringing on his free speech rights.

He also accused the Biden administration of hiring too many IRS personnel, and has vocally objected to a so-called billionaires tax.

Having a role in a bespoke commission could give Musk power over federal agencies’ budgets, staffing and the ability to push for the elimination of inconvenient regulations.

Musk also said during a Tesla earnings call on Oct. 23, that he intended to use his sway with Trump to establish a “federal approval process for autonomous vehicles.” Currently, approvals happen at the state level.

Tesla has been working on driverless technology for more than a decade but hasn’t yet produced a robotaxi or vehicle safe to use without a human ready to steer or brake at any time.

Additionally, a Trump administration may agree to ramp up the government’s work with his companies.

Musk’s newest startup, xAI, is developing large language models and generative artificial intelligence software that aims to compete with similar products from Microsoft-backed OpenAI, Meta and others. 

Meta recently announced its open-source Llama models were available to U.S. government agencies in the areas of defense and national security. And OpenAI is already working with the U.S. military after adding a retired U.S. Army general and former director of the National Security Agency to its board in June.

Musk didn’t respond to a request for comment.

SpaceX catches the first-stage “Super Heavy” booster of its Starship rocket on Oct. 13, 2024.
Sergio Flores | Afp | Getty Images

SpaceX’s billions in federal contracts

According to research on federal spending and prime contracts by FedScout, SpaceX has received more than $19 billion from contracts with the federal government since 2008, including from NASA, the U.S. Air Force and Space Force.

The company is on track to take in several billions of dollars annually from prime contracts with the federal government for years to come, according to FedScout CEO Geoff Orazem.

That number doesn’t include classified spending, smaller items like Starlink terminals, or spending that’s done at the state level via block grants from the federal government, like when the Federal Emergency Management Agency gives states assistance to help recover from natural disasters.

Meanwhile, Tesla has reported around $10 billion in sales of “automotive regulatory credits,” or environmental credits, since 2015, Orazem found by evaluating the company’s financial filings.

These incentives are largely derived from federal and state regulations in the U.S. that require automakers to sell some number of low-emission vehicles or buy credits from companies like Tesla, which often have an excess.

Regulatory credits were about 60% of Tesla’s net income in the second quarter of 2024, and 39% in the third quarter. Other government rebates on EV sales represented about 50% of Tesla’s third-quarter profit.

Trump hasn’t made clear whether he’ll maintain those rebates and regulatory credit programs. He previously said he may cut the federal $7,500 EV tax credit.

Additionally, Trump has promised to slash income taxes and to implement steep tariffs. While tariffs could help protect Tesla from Chinese competitors, such a move could involve significant disruption to Tesla’s automotive supply chain, which relies on some materials and parts from China.

When it comes to worker protections, Musk has been seeking to strike down the constitutional authority of the National Labor Relations Board through litigation. He may find such lawsuits are no longer needed if Trump is willing to eliminate or reduce the power of the agency, which is supposed to ensure that companies follow federal laws allowing workers to form unions and engage in collective bargaining with their employers.

Then there’s Musk’s involvement with sanctioned governments.

At SpaceX, Musk has withheld the use of Starlink, the company’s satellite internet service, over Taiwan, even for U.S. troops based there. The Wall Street Journal reported that Musk cut off access as a favor requested by Russian President Vladimir Putin allegedly on behalf of Chinese President Xi Jinping during a series of ongoing, frequent talks between the two men.

In response to the reports, NASA Administrator Bill Nelson said if they were true, Musk’s conversations with Putin should be be federally investigated.

According to analysis by NBC News, Musk has repeatedly posted pro-Kremlin content to his hundreds of millions of followers on X. He even engaged with content from Tenet Media and its creators at least 60 times on the social network. Tenet was at the center of an alleged Russian covert operation to manipulate U.S. public opinion ahead of the 2024 election, according to the Department of Justice

While Vice President-elect JD Vance recently called Putin a U.S. adversary, Trump has frequently spoken of his affection for the Russian president, even since Russia’s devastating invasion of Ukraine in 2022. Kremlin officials have celebrated Trump’s victory in this week’s election.

Musk, who publicly endorsed Trump moments after the first assassination attempt on the former president in July, has said he intends to remain involved in U.S. politics for the long haul.

He said in a discussion on X on Tuesday that his super PAC would continue its work after the presidential election and would seek to influence the outcomes of midterms, intermediate elections and elections of local prosecutors across the U.S.

A priority, Musk said, would be to help elect district attorneys “who prosecute repeat violent criminals who are obviously a danger to people.”

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19 Comments

  1. That means they have to work further at every stage of the press.
    With cables, doing isolation exercises like rear delt flys or lateral
    raises will get better outcomes. Using cables for shoulder workouts additionally helps in maintaining good type by offering steady
    resistance. Not Like free weights which may let some elements
    of the train be easier because of gravity’s help, cables ensure
    every inch of the move counts. In reality, as you saw above, cable machines
    can actually build muscle quicker than free weights because of the increased
    time underneath tension.
    Pay consideration to how much ache you are experiencing when exercising, particularly when doing it first.

    These workout routines would possibly first cause some enchancment in your signs.
    They can, however, help to enhance shoulder
    movement with regular train and should get simpler over time.
    The degenerative illness often identified as osteoarthritis damages the cartilage in joints, including the shoulder joint.
    It may result in shoulder ache, stiffness, and restricted range of motion. Overuse, impingement, and
    instability are a quantity of common causes of shoulder
    ache.
    As you might be whipping the ropes away from each other after
    which again toward each other, they might cross paths.
    Your arms, however, won’t cross each other, so after
    they begin to meet at the middle, whip the ropes outward
    by flicking your wrists. Some grips will really feel higher
    than others depending on the train. There really are not any rules (but we are going
    to recommend certain grips for each train below).
    See what feels snug in your wrist and is essentially the most optimum for the exercise at hand as properly as how it hits your muscles.

    This is amongst the greatest exercises not only on your again shoulders however for the complete scapular
    muscular tissues. If you want wholesome shoulders, then you need to do this exercise no much less
    than twice per week.
    Remember to breathe out as you press up and breathe
    in the greatest way down. Connect each the handles at the backside of a cable machine and place an incline bench
    in between. Return again to the starting place and stretch your shoulders on the finish.
    You simply have to maintain your elbows slightly bend and convey your arms above the
    shoulder height. Cable machine is a superb modality to convey variations
    into your workout program. You can use different angles and positions
    to coach your muscle tissue.
    The glutes, informally often known as the butt muscles are activated whereas squatting and sitting
    in a strong, squat place whereas using the battle
    ropes. So earlier than diving into the battle rope exercise program that can both shed off
    kilos and tone your complete body, check out which muscular tissues might be
    sore so you realize what you’re stepping into.
    You can hit each a half of your shoulder – the entrance, center,
    and again.
    This is a perfect finisher for abdominals and core,
    and in addition a perfect movement preparation train for vertical
    or horizontal pushing and pulling workout routines.
    You can even use it as a stand alone power constructing exercise.
    The six active shoulder ROM workout routines on this step-by-step guide are
    meant to assist enhance the lively range of movement round your shoulder.
    Once these exercises turn out to be simple, you might wish to progress
    to shoulder and rotator cuff strengthening workout
    routines by performing them with free weights. Any
    modality that is chosen for implementation of a strength and conditioning program builds its value by having
    a quantity of methods to scale and use the modality.
    1.5″ isn’t as taxing on the grip or heavy because the 2″ rope, and the 50ft enable
    for greater ability to scale both double and single rope actions.
    This is an amazing compound exercise that works the again muscles and
    core muscular tissues like the rectus abdominis to keep you secure
    and upright.
    Then take a look at our tricep extension vs skull crusher comparison information. By the way in which, the
    BEHIND-THE-NECK SHOULDER PRESS, a deltoid train, was proven within the German study to be remarkably effective at hitting the long head.
    We suspect this occurs extra at lockouts when the triceps take over
    a lot of the work and the long heads totally contract.
    To flip this shoulder builder into a real triceps grower, attempt doing these in an influence rack or on a Smith machine arrange so that you solely transfer via the top third of typical reps.
    Under-performing rear delts forestall you from gaining power with overhead pressing and bench urgent.
    You can work your higher body muscle tissue very well by utilizing battle ropes.
    The high and low battle rope waves are the identical movements as the
    battle rope waves.
    You wouldn’t wish to attach a bar to this as a end result of
    you’re going to restrict the quantity of rotation you will get via your shoulders, which is an all-important part of this
    train. I’d either have to compromise and use a lighter band, or I’d have to stand nearer and begin within the midrange of the
    exercise so I can get in the right place on the end.
    It’s just one thing you’ve to concentrate on if you’re going to train at house.
    If you’re at home, the resistance bands model is a great face pull alternative.

    Dumbbell shoulder overhead presses will work all heads of the
    deltoid along together with your triceps. This is as
    a outcome of performing compound workout routines aren’t very effective at honing in on this
    specific muscle. If you practice your again with a complete again exercise, you already midway
    there. Again exercises like rows and pulldowns work your traps to a significant
    diploma. With these trapezius workout routines at your fingertips,
    you’re all set to blast your traps and pressure them to
    grow stronger and bigger.
    You can develop extra well-rounded musculature using a cable machine than you can with free weights alone.

    You can push or pull towards the handles in fairly literally any course, from any angle.

    This lets you hit your muscles in new and creative ways in which simply
    aren’t potential with free weights. It’s simple to
    get bored doing the identical workout routines over and over,
    and that boredom can lead to demotivation and fewer effective workouts.

    It can help improve rotator cuff energy or improve neuromuscular control
    of this muscle group. Be certain to talk to your healthcare provider and physical therapist
    to guarantee that this train is appropriate for you. The seated single arm cable row is
    probably certainly one of the greatest cable again workout
    routines as a result of it’s unilateral where you will work
    one aspect of your physique at a time. Unilateral workouts like this might help to pinpoint muscle imbalances and
    then right them. This movement will also engage
    your core and stabilizing muscular tissues which can help stop
    accidents in the future.
    Not permitting any movement of your elbow will place higher emphasis in your tricep
    muscle. When you choose a careful approach, there are a
    few reasons why your restoration might not be as fast as you want to.
    There is inadequate blood move to the rotator cuff tendons where they connect to the humerus.

    Because of damage and strain, we’re therefore
    more likely to get a rotator cuff damage as we become older.

    However that was earlier than I discovered the wave physics involved, virtually mirrored the mechanical physics we all use
    and love with barbells, dumbbells, physique weight, and kettlebell exercises.

    And next factor you realize, I’ve dedicated my career
    to exploring the infinite potentialities and functions to
    training with battle ropes for power, power, endurance and past.
    Lively shoulder external rotation is a superb exercise to improve the use of your rotator
    cuff muscular tissues. This exercise may be very efficient to carry
    out after rotator cuff surgery or a shoulder harm.

    Because this allows sufficient stimulus for progress and strength, whereas additionally
    offering ample restoration time. For hypertrophy (8-12 reps), choose a weight that challenges you
    in the final few reps however still lets you maintain type.

    Throw in some high-rep workouts, some low-rep ones, and of course, hit
    that hypertrophy vary. The shoulder joints are one of the most complicated and
    versatile joints within the body. If you wish to crush
    PRs, add slabs of muscle, or lose weight, KIZEN has the right program for you.
    If you enjoyed this publish, check out our different collections of
    one of the best exercises for each muscle group below.
    The shoulder is amongst the most complex joints in the body because it can transfer in multiple planes, including the sagittal, frontal, and transverse.

    Right Here in this article, you can see some awesome cable workouts for
    shoulders that can particularly target every a part of your delts, i.e.,
    the entrance, lateral and rear delts. The one-arm cable
    lateral elevate is an isolated shoulder exercise that targets the deltoids while increasing stability in both the wrists and the core.
    Cable machine exercises are nice for the shoulder as a end result of they keep
    the muscle tissue in tension all through the entire vary of motion, which helps construct power and shape the delt muscles.
    You may bear in mind them from gym class, but ropes have been a
    preferred health tool in gyms throughout the nation for years.

    Unlike free weights, cable machines make the most of an adjustable weight stack
    for resistance. A cable runs via a collection of pulleys
    and attaches to handles, bars, or ropes that you grasp
    to perform numerous exercises. Battle rope exercises are whole body,
    so your upper physique, lower physique and core muscle
    tissue might be worked. Pretty a lot every single muscle in your body shall be stimulated when doing battle rope exercises, with your core, arms, shoulders, again, glutes and quads bearing
    the brunt of the work.
    First I’ll show you correct type for the traditional cable Face Pull with my preferred possibility of
    adding on a trap raise. Moreover, listen to your
    body throughout every exercise; should you experience discomfort or pain, regulate the load accordingly to forestall potential damage.
    Whether you’re new to exercising or an experienced athlete, rope flow is for everybody.
    Proper rope size is essential for efficient and easy flow.
    Adjust the length of the rope by tying knots in the handles, or by utilizing adjustable
    ropes. This will be positive that the rope is the correct size
    on your height and arm size, which will help you obtain a consistent and clean rhythm.
    They’re low impression and may be carried out sitting down, so they’re a fantastic various to other
    cardio workouts and would also be accessible
    to people in wheelchairs.
    From the significance of consulting a healthcare supplier
    to the talk between DIY and store-bought pulleys, we have coated a variety of
    matters to information you in making informed
    decisions. So, before you start swinging that shoulder pulley, make certain to
    seek the advice of a physical therapist, orthopedic surgeon, or chiropractor that
    specializes in sports activities medicine. Their expertise can guide
    you thru the secure and efficient use of this tool, serving
    to you achieve your rehabilitation goals while minimizing the chance
    of further damage. Furthermore, a physical therapist can reply any questions you might have about your condition and the
    most effective strategies for remedy. This personalised consideration may be invaluable, especially whenever you’re navigating the complexities
    of shoulder strengthening workout routines and other types of physical remedy.

    If you’re in search of a shoulder exercise you are able to do at home or the gym, strive the circuit below.

    Begin with 5-10 minutes of dynamic shoulder stretches like arm circles, shoulder
    rolls, and shoulder mobility exercises to increase heart rate and prepare the
    shoulder joints for the workout.
    You may particularly target every muscle in your
    physique or you could do actions which are complete body.
    You get a boost in mobility as battle rope exercises will move through full ranges of motion, so
    any restricted areas like hips or shoulders will gradually open up.

    All in all, battle ropes will build muscle, however not in the identical method as a barbell or a wide
    range of dumbbells can. This is since you are restricted on the resistance degree and your progressive overload techniques.
    That said, battle ropes will assist you to build lean, stable muscle.
    So, if you would like to seem like a Mr. Olympia, you’ll
    need different implements like barbells/plates (but you must still use battle ropes to keep off fat).

    Clients discover the private care appliance efficient for bodily remedy after shoulder surgical procedure.
    They find it simple to set up and use, offering the
    specified results. Nonetheless, opinions differ regarding the build high quality and pulley high quality.
    The start position with the battle rope, whether or not working two handles or single rope variations, is how we build and scale the actions with the rope.
    One of the most common errors with the battle rope is to tug the rope to most rigidity
    firstly.

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