Elon Musk's Business Under Trump's Term

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Post on Nov 07, 2024

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Elon Musk's Business Under Trump's Term: A Rollercoaster Ride of Support and Controversy

Elon Musk, the visionary entrepreneur behind Tesla, SpaceX, and numerous other ventures, navigated a complex landscape during Donald Trump's presidency. While Musk initially enjoyed a period of close ties and favorable policies, their relationship became increasingly strained, culminating in public disagreements and even legal battles.

Early Days: A Symbiotic Relationship

Trump's 2016 election victory was met with enthusiasm from Musk, who saw the potential for policy changes that could benefit his companies. Trump's pro-business stance, coupled with his focus on deregulation and tax cuts, were seen as positive for Tesla and SpaceX.

Key Highlights of Musk's Business Under Trump:

• Tax Cuts and Jobs Act (TCJA): The 2017 tax bill, a major legislative achievement of Trump's administration, provided significant benefits to Tesla and SpaceX. The bill lowered the corporate tax rate and offered tax credits for electric vehicles, boosting Tesla's bottom line.
• Environmental Deregulation: Trump's rollback of environmental regulations, particularly those related to vehicle emissions, provided some relief for Tesla, a company that had faced regulatory hurdles in the past.
• Space Force Creation: Trump's establishment of the Space Force, a new branch of the U.S. military, opened up new opportunities for SpaceX, a key player in the space industry. SpaceX secured contracts for satellite launches and other space-related services for the newly formed branch.

The Turning Point: A Shift in Relations

Despite the initial alignment, the relationship between Musk and Trump took a turn in 2018. This shift was driven by several factors:

• "Fake News" Accusations: Musk's public criticism of Trump's use of the term "fake news" strained their relationship. He also criticized Trump's withdrawal from the Paris Climate Agreement, a decision that contradicted Tesla's commitment to renewable energy.
• Tesla's Tax Credits: Trump's administration's attempt to cut back on tax credits for electric vehicles, including those offered to Tesla, sparked further conflict.
• The "Boring Company" Controversy: The public spat over the approval process for the "Boring Company's" underground transportation system in Los Angeles further aggravated the situation.

Public Disagreements and Legal Battles:

By 2019, the once-strong bond between Musk and Trump had crumbled. Musk became a vocal critic of Trump's policies, particularly his environmental policies and handling of the COVID-19 pandemic.

• Twitter Feuds: Musk engaged in public feuds with Trump on Twitter, criticizing his policies and even mocking his actions.
• SEC Lawsuit: In 2018, the Securities and Exchange Commission (SEC) filed a lawsuit against Musk for allegedly misleading investors about Tesla's production capabilities, leading to a settlement where Musk stepped down as chairman of the board.

Conclusion: A Complex Legacy

The relationship between Elon Musk and Donald Trump was a complex and evolving one. While Musk initially benefitted from Trump's policies, their relationship eventually soured over policy differences, public disagreements, and legal battles. The impact of Trump's policies on Musk's businesses remains a subject of debate. However, it is clear that the relationship between these two prominent figures left a lasting mark on American business and politics.