Tesla, SpaceX, And X: How Musk's Companies Could Cash In On A Trump Presidency

Elon Musk‘s expanding role in the Trump administration is raising questions about potential benefits to his business empire, which already receives about $20 billion in government contracts.

SpaceX stands to gain with President Donald Trump‘s support. Trump has praised the company and called Musk “super genius,” and he has nominated tech billionaire Jared Isaacman, who has led two SpaceX missions, as NASA administrator.

Tesla TSLA, however, faces mixed prospects. While the Model Y remains the best-selling car globally, Trump’s reversal of electric vehicle policies could impact the company, which received $2.8 billion in subsidies and earned another $2.8 billion from regulatory credits in 2024.

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The company recently reported its first annual decline in EV sales in over a decade, particularly pronounced in Europe.

X shows improving finances as advertisers—notably Apple Inc AAPL—return. The platform serves as a key communication channel for the administration’s Department of Government Efficiency, which Musk leads. After earlier financial struggles that led Musk to consider bankruptcy, the platform’s debt is now selling near face value.

Musk’s artificial intelligence venture xAI could benefit from the administration’s friendly stance toward AI development, marked by the appointment of Musk ally David Sacks as AI czar and the rescinding of Biden-era safety standards. However, it empowers competitors like OpenAI, which Musk recently attempted to acquire.

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Starlink, however, faces international challenges. Ontario plans to cancel its contract with the satellite internet provider in response to Trump’s tariff threats against Canada. Brazil temporarily banned the service last year amid disputes over content moderation on X.

SpaceX’s advantage over competitors like Boeing BA and Blue Origin could expand under Trump’s ambitious missile shield plans, which require space-based interceptors. The company remains unique in its ability to launch numerous satellites quickly.

Neuralink, Musk’s brain implant company, achieved its first human implant but remains under strict FDA oversight. The Boring Company‘s tunneling projects continue in Las Vegas and California, while its chief executive, Steve Davis, now helps lead government efficiency efforts.

The White House says Musk will “excuse himself” from government efficiency work related to his business contracts. However, critics remain concerned. “The strategic direction is being driven by Elon’s ego, not what is best for Tesla,” Ross Gerber, a longtime shareholder, recently told the Financial Times.

Musk, who donated more than $250 million to Trump’s 2024 campaign, maintains all government contracts were won on merit. His companies could benefit from reduced oversight, as his role includes reviewing agencies that have previously investigated his businesses.

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