Elon Musk’s ‘Big Bang’, by Elisenda Vallejo
In his victory speech as the new President of the United States, Donald Trump claimed, “A star is born: Elon.” Extreme as always, but Elon Musk has definitely gone over the top after linking up with Trump during the election campaign. And you have to give him credit for knowing how to bet and win. The South African tycoon made his fortune with the sale of PayPal and reinvested his fortune in SpaceX, Tesla, and eventually Twitter, converting to X. And now, with his close proximity to the president-elect, he has wielded more power than any other businessman or top manager in American history. This is definitely a ‘big bang’ from the world’s richest man, Elon Musk.
The world’s richest man has gained surprising power and influence in the new Trump administration
Its impact falls on surprising areas. This week, he met with Iran’s ambassador to the United Nations with the aim of reducing tensions between the United States and the Islamic Republic, as confirmed by official Iranian sources. New new york Times He has been advising Trump during phone calls with various world leaders, such as Ukrainian President Volodymyr Zelensky. And he has become an essential presence at the courthouse at Mar-a-Lago, where he has helped shape the new Trump administration’s appointments one by one.
A must at Mar-a-Lago
The tycoon campaigned for Trump and has wielded more power than any other business representative in the history of the United States.
There is a fusion between power and money in the hands of two egoistic people who hate rules and regulations and this takes us into unknown territory, among other things because their strong personalities can clash at the first opportunity and break the alliance. Are. In any case, it is in Musk’s best interests to keep it. Currently, with the rise in Tesla shares since November 5, he has added about $40 billion to his wealth. A huge return for the $100 million invested in Trump’s campaign. But there is more. The president-elect’s team is preparing to eliminate the $7,500 assistance for the purchase of electric vehicles that Biden approved. Although it may seem like this measure would hurt Musk’s company, the opposite is true. Tesla, which controls more than 50% of the market in the US, would have a competitive advantage over other manufacturers like General Motors or Ford, whose electric production is not yet profitable. Similarly, imposing tariffs on Chinese imports (Trump talked about a 60% rate during the campaign and 10-20% for the rest of the world) would reduce the competition that the Asian giant’s affordable electric cars represent for Tesla. . ,
Along with SpaceX, he also expects big benefits from associating with Trump. The president-elect is expected to rely on his Starlink satellites to replace Joe Biden’s project (which cost $42.5 billion) to expand broadband to rural areas. But Musk’s bigger goal with SpaceX is to get to Mars, which would be much easier without some of the regulations from the Federal Aviation Administration.
winning bet
Big potential profits for Tesla and SpaceX, and a potential conflict of interest with the efficiency agency
And there is also speculation on the social network that it may merge with Trump’s social network, Truth Social.
Fulfilling one of his campaign promises, Trump has appointed Elon Musk along with biotech entrepreneur Vivek Ramaswamy to launch a new Department of Government Efficiency, which will cut spending and bureaucracy. Not easy for a federal government that employs more than 2 million officials and has an annual budget of more than $6 billion. Musk has suggested at least $2 trillion in cuts, though he has not specified whether that would happen each year or in the legislature. Could the Tesla magnate provide the breath of fresh air that many consider necessary for North American governance? It will not be so easy to reach a consensus on what is left and how to end it. Interest on the loan must be paid and Trump has promised not to touch Medicare. And, of course, any budget cut or elimination of a federal agency requires approval from Congress where it is not clear whether representatives from Republican districts would eliminate farm subsidies, renewable energy programs or military bases. Would agree. Musk’s potential conflict of interest is also emerging as a potential problem. SpaceX and Tesla are subject to federal government regulation, and they have contracts with state agencies ranging from the Space Authority to the Department of Defense. A challenge for Musk too.