The future of Elon Musk‘s business endeavors, including Tesla Inc. TSLA, SpaceX, and X (formerly Twitter), could rest on the outcome of the 2024 presidential election.
What Happened: A Business Insider report suggests that a potential Donald Trump presidency could bring regulatory changes that would benefit Musk’s companies.
Musk has shown support for the former president’s 2024 campaign, adding recently that he established a political action committee endorsing “a meritocracy & individual freedom,” values he now associates with the Republican party, reports the outlet.
“You can think of Musk’s contribution as an investment to eliminate any governmental interference with his businesses,” Michael Gerhardt, an administrative law expert at the University of North Carolina, told Business Insider.
Trump’s proposed plans to lower corporate and personal taxes, along with his control over federal regulations, could be beneficial for Musk.
As president, Trump could sign executive orders and make hiring decisions that could alter the course of federal agencies, possibly putting an end to ongoing investigations and lawsuits against Musk’s companies.
However, certain agencies like the Securities and Exchange Commission, which has conducted several investigations into Musk’s companies, have statutory independence from the executive branch.
But, if Trump becomes president and Republicans control Congress, they could pass laws granting the president more authority over these agencies.
“If Trump were in the White House, he would control the EPA, the head of the EPA, and they could also amend those regulations to make the permitting for Clean Water Act requirements easier,” Jillian Blanchard, an environmental lawyer at Lawyers for Good Government, said. “Same is true for the Endangered Species Act right now.”
Why It Matters: Regulatory changes under a potential Trump presidency could significantly ease the pressure on Musk’s companies.
The proposed reduction in corporate and personal taxes could boost the financial performance of these businesses.
Furthermore, the potential for executive orders and hiring decisions that could change the direction of federal agencies could end ongoing investigations and lawsuits, providing a more conducive environment for Musk’s companies to thrive.
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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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