Elon Musk’s recent flirting with U.S. politics has become increasingly complex as the 2024 presidential election looms. Experts caution that whether Joe Biden or Donald Trump returns to the White House, Musk’s businesses face significant challenges. However, one brings in more problems than the other.
What Happened: Tesla Inc. (NASDAQ:TSLA) CEO and SpaceX founder Musk has been vocal about his interactions with former President Donald Trump. At a recent shareholder meeting, Musk revealed that Trump is a big fan of Tesla’s futuristic Cybertruck and often calls him for no apparent reason.
“I have had some conversations with him and he does call me out of the blue for no reason. I don't know why, but he does."
However, according to venture capitalist and political strategist Bradley Tusk, if Trump secures a second term in the White House, it could spell significant implications for Musk's companies.
“My initial instinct — I think everybody’s — would be like, ‘Oh, of course, it’d better for Musk under Trump.’ But I think ultimately, it’d be much worse,” Tusk told Business Insider.
Tusk explained that Biden likely doesn’t see Musk as a rival. However, Trump's affection for Musk could easily turn, as it has with many of his former allies, potentially making the Tesla CEO a target of his ire, he added. “All the things that he values, the things that sort of make him happy — the attention and relevance — are the same things that make Trump happy.”
Musk-Trump Relationship
While Musk talks good things about Trump now, he distanced himself from the former president during his first term. Musk initially served on Trump’s advisory councils, he quit after Trump exited the landmark Paris Climate Accord in 2017.
According to Tusk, Musk faces risks in aligning closely with Trump again. The venture capitalist cautioned that while tax cuts and deregulation could benefit Musk’s enterprises like Tesla, SpaceX, and his other ventures, they could also bring market volatility.
See Also: A Day After Shutting Down Tesla Phone Rumors, Elon Musk Says It Is ‘Not Out Of The Question'
Underscoring what he would tell Musk if he were to advise him, Tusk added, “You’ve got to really be careful what you wish for — for a bunch of reasons.”
However, Stacey Lee, a law and ethics professor at Johns Hopkins Carey Business School, said there's a significant opportunity for Musk to wield considerable influence within the Trump administration. “And when you look at the hallmarks of what Trump really respects — he’s popular, he has a management style that is more singular in its voice — these are all of the things that Trump really admires, and so does Musk.”
Musk-Biden Relationship
Musk and Biden share a frosty relationship. The Tesla CEO has repeatedly taken potshots at the president. In 2021, he also suggested that there should be an upper age limit of 70 for people running for political office.
However, according to Tusk, the billionaire holds a better chance of hitting fewer bumps in Biden’s presidency. Under a second Biden administration, stability is anticipated, with policies favoring clean energy initiatives that could bolster Tesla’s fortunes, Tusk said.
“And now we have the choice of a president who genuinely believes in clean energy and someone who actively despises it. So, for those Tesla shareholders, it’s a lot better for them if Joe Biden is president. And they just gave Elon $55 [$56] billion to do what’s best for the company.”
However, according to Lee, Biden’s presidency will lead to increased regulation and pro-union measures that could pose challenges to Musk’s business model.
“Biden is very traditional in terms of his policies. He is committed to raising corporate taxes,” Lee said, adding, “Under Trump, we saw them go from 35% to 21%, and now Trump is saying, ‘Hey, if I get in, I’ll take it down to 20.’ I think that would be music to Musk’s ears.'”
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