Trump Wins 2024 U.S. Presidential Election, Musk’s Companies Poised to Benefit

Yesterday, Donald J. Trump, a Republican politician and entrepreneur, triumphed in the 2024 U.S. presidential election, even though pre-election polls indicated a closely contested race with his Democratic rival, incumbent Vice President Kamala Harris.

During the election, Trump received unwavering support from tech magnate Elon Musk. As the owner and operator of six companies, Musk made a substantial contribution to a political action committee endorsing Trump's re-election, committing tens of millions of dollars in funding.

Elon Musk's technology enterprises are poised to gain significantly from Trump's return to office:

• · Tesla Inc.: Although Trump has vowed not to enforce stricter regulations on electric vehicles or emissions standards, Musk's popular electric and autonomous vehicle company may benefit from a general relaxation of vehicle standards, particularly in the autonomous driving sector. Following the election results, Tesla's stock price has risen by over 13%.

• · SpaceX: Musk's rocket and space company has previously clashed with the federal government and was recently fined $633,009 for failing to comply with licensing requirements during two launch operations in 2023. With Trump in office, Musk is likely to seek the repeal of this fine and the elimination of future licensing requirements to prevent the Federal Aviation Administration (FAA) from impeding the pace and flexibility he deems necessary.

• · Starlink: Musk's satellite internet subsidiary Starlink, currently operating over 6,000 satellites, is expected to gain more ground following Trump's pledge to reduce the administrative burdens and red tape imposed by federal regulatory bodies like the Federal Communications Commission (FCC) and the FAA.

• · Neuralink: Although Musk's experimental brain implant company Neuralink has faced controversy, it has also achieved significant milestones. Trump's victory could pave the way for Neuralink to accelerate human trials, enabling it to be regulated as a medical device by the Food and Drug Administration (FDA).

• · X (formerly Twitter): Musk's social network X, which he acquired and renamed from Twitter two years ago for $44 billion, has undergone massive layoffs and policy updates permitting freer and more extreme speech and content. With Trump and his allies joining, X's prominence is likely to increase.

• · xAI: As an AI venture under Musk’s company X, xAI aims to compete with the former company OpenAI. Trump's victory is expected to make xAI a more viable alternative for the U.S. government and military as a contractor and AI technology service provider. While the government should remain neutral, xAI is set to be included in the list of federally approved AI suppliers and could even become the preferred choice.

Furthermore, with Trump returning to the White House, there is a possibility of repealing the AI-related executive orders signed by outgoing President Joe Biden in October 2023. These orders mandated that developers of advanced foundational models share safety test results and other essential information with the U.S. government and required companies to participate in red team exercises conducted by the National Institute of Standards and Technology (NIST). While the directive was lauded within and beyond the AI sector, some analysts argue that its revocation could diminish the United States' competitive stance in the global AI arena. Nevertheless, for Musk’s ventures, especially xAI, this could be advantageous, potentially making their models more attractive to developers and business clients.