In recent years, Elon Musk has transitioned from a casual interest in politics to actively seeking influence in Washington. As the presidential election nears, Musk’s potential endorsement of Trump highlights his increasing political engagement and the significant stakes he holds in the election’s outcome.
While Musk hasn’t officially endorsed any candidate, reports suggest he has privately discussed strategies to defeat Democrats with other billionaires, reflecting a growing alignment with Republican interests.
The Wall Street Journal recently reported that Musk has engaged in discussions with the Trump campaign about a possible advisory role if Trump wins the presidency again. Although the Trump campaign hasn’t commented on these talks, they acknowledge that tech leaders like Musk are backing Trump’s reelection.
This support is driven by dissatisfaction with Biden’s economic policies and regulatory measures, which they believe are harmful to innovation and the tech industry. Brian Hughes, a senior advisor to the Trump campaign, emphasized the widespread concern among tech leaders about Biden’s impact on the economy and innovation.
Under a second Trump administration, Musk’s businesses, including Tesla, X, and SpaceX, could benefit from tax cuts and deregulation, potentially resulting in significant growth and increased political influence.
However, experts caution that such a scenario might also bring market instability, which could affect Musk’s wealth and power. Stacey Lee, a professor at Johns Hopkins Carey Business School, noted that Musk and Trump share qualities that could make them effective allies despite their unconventional partnership.
In contrast, a Biden reelection could offer stability, which is advantageous for markets and businesses. Musk’s substantial pay package under Biden’s current presidency demonstrates the benefits he has already enjoyed.
Biden’s commitment to clean energy aligns with Tesla’s goals, providing a favorable environment for Musk’s ventures. However, more regulation and pro-union policies under Biden could pose challenges for Musk’s businesses. Lee pointed out that Biden’s traditional approach to corporate taxes contrasts with Trump’s promises of further tax reductions, which would be more appealing to Musk.
Ultimately, while a second Trump term might seem beneficial for Musk, experts warn it could backfire. The allure of increased power and influence might lead to negative outcomes, especially given Trump’s unpredictable nature.
Tusk emphasized that Trump’s potential to turn against allies could make Musk vulnerable despite the initial advantages. The dynamic between Musk’s desire for attention and relevance and Trump’s similar traits could lead to conflict, highlighting the risks of aligning too closely with a volatile political figure.
