How Elon Musk’s business empire stands to benefit from his ties to president Trump

Mr. Elon Musk has humorously inserted himself into the Oval Office. The self-proclaimed First Buddy has six companies, which are already bringing in $20 billion from government contracts, and now he’s leading the federal cost-cutting task force D.O.G.E and reshaping policies that directly affect said businesses.

Let’s start with X (formerly Twitter). Elon bought Twitter for $44 billion in 2022, later rebranding it as X. The platform was a financial disaster, losing advertisers and revenue to the point where Elon publicly floated the idea of bankruptcy. But since president Donald Trump’s victory, Amazon, Apple, and other major advertisers have returned, reversing X’s financial decline just like that.

The federal government is now using X as a primary channel for major announcements. Instead of traditional press briefings, Trump’s administration is posting key policy updates directly on the platform. Elon has also turned X into a battleground against federal bureaucracy, using it to attack regulators he believes are “wasteful.”

X’s financial recovery is also tied to Wall Street. Billions of dollars in debt linked to the platform’s purchase were recently sold at near face value—a relief for banks that had written down the loans. The turnaround wasn’t just thanks to his business genius, it was also about political power.

However, Elon’s influence isn’t welcomed everywhere. The European Union is investigating X over disinformation concerns, and regulators in Brussels are pushing back against Elon’s refusal to comply with their rules. But Trump’s administration has made it clear that NATO support could depend on Europe softening its stance on US tech regulations.

Tesla risks losing key subsidies but keeps its market power

Tesla, the electric vehicle giant that built $150 billion of Elon’s fortune, is at the center of a policy war. Under Biden, Tesla benefited from EV subsidies, tax credits, and regulatory credits that helped boost profits.

In 2024 alone, Tesla made $2.8 billion—40% of its net profit—from selling credits to automakers struggling to meet emission standards, according to its earnings report released on Feb. 11.

Now Trump’s administration has wiped out Biden’s EV policies, canceling the 2030 federal goal that required half of all new cars sold to be electric. Trump has also proposed eliminating the $7,500 EV tax credit and dismantling the emissions credit system. That means Tesla’s competitors, who relied on those credits, will be in deeper trouble.

Elon dismissed the policy changes on X, saying, “The electrification of transport is inevitable.” But the numbers tell a different story. Tesla’s sales declined for the first time in over a decade in 2024, with a huge drop in Europe, where Elon’s public support for far-right political figures has hurt the brand.

Another threat is in China, Tesla’s second-largest market and home to its biggest Gigafactory. The Trump administration’s escalating trade war with Beijing has raised concerns about potential retaliation, including delays in regulatory approvals for Tesla’s self-driving software.

SpaceX gains even more federal contracts

Elon’s $350 billion space company SpaceX has already secured billions in contracts from NASA and the Pentagon. Under Trump, analysts predict that number is gonna grow.

Trump has repeatedly praised SpaceX, calling Elon a “super genius” in his victory speech. His new NASA administrator, the crypto-friendly billionaire Jared Isaacman, has direct ties to Elon since personally led two SpaceX missions in 2022. That means federal contracts will keep flowing to SpaceX, pushing competitors like Boeing and Jeff Bezos’ Blue Origin more behind than they frankly already are.

Regulatory battles that once slowed SpaceX down are disappearing. Elon’s role at D.O.G.E gives him direct control over cutting red tape. Agencies like the Federal Aviation Administration, National Labor Relations Board, and US Fish and Wildlife Service—which previously fined or restricted SpaceX—are now under pressure to ease regulations.

Elon’s other businesses benefit from Trump too

Elon’s 7,000-satellite Starlink network played a role in Ukraine’s war effort, has growing influence in Taiwan, and is increasingly caught in international disputes.

Under Biden, Starlink faced regulatory obstacles, including an FCC delay on expanding to 30,000 satellites and the revocation of a $900 million broadband deal in 2022. But in just three weeks under Trump, those restrictions are being lifted one after another.

The Trump administration has also eliminated Biden’s AI regulations, favoring US dominance in artificial intelligence. That benefits xAI, Elon’s AI startup, which now has an ally in the White House.

Trump’s new AI and crypto czar, David Sacks, is an Elon loyalist and part of the famous so-called “PayPal mafia.” That gives xAI a government-backed edge over competitors. But Elon’s bitter rivals at OpenAI are also benefiting from the deregulation.

Elon has repeatedly attacked OpenAI’s CEO, Sam Altman, accusing him of turning the company into a “for-profit deception”. This week, Elon made an audacious bid to take over OpenAI, attempting to block its transformation into a full-scale corporate powerhouse.

Altman pushed back, saying, “Using political power to hurt competitors is profoundly un-American.” Elon denied using Trump but admitted OpenAI’s restructuring “must be stopped.”

Elon has also publicly clashed with a Trump-backed $500 billion AI infrastructure project, questioning its financing and SoftBank’s role in the deal.