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Elon Musk has wielded his power as a political influencer in recent years.
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Whoever wins the White House could drastically impact the billionaire’s business.
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A political strategist told BI that Musk needs to “be careful” what he wants in the next election.
In the last years, Elon Musk appears to have gone from a light flirtation with politics to an intense love affair as his influence in Washington increased.
As the presidential election approaches and the billionaire businessman continues to tease the idea of a Trump endorsementIt’s becoming clear that Musk has a lot at stake depending on who will be the country’s next leader.
While Musk has not publicly endorsed any candidates, Business Insider previously reported that he has linked with other billionaires through a shared arrangement. distrust of Democrats and we discussed in private the best way to defeat them in this year’s elections.
According to a recent report from The Wall Street Journal, Musk has also spoken to the Trump campaign about taking on a potential advisory role if the former president returns to the White House.
A representative for the Trump campaign declined to comment on The Journal’s report but acknowledged that Silicon Valley Elites like Musk lined up to support Trump’s re-election campaign.
“It has been widely reported and demonstrated in numerous ways that many of the country’s most important leaders in technology and innovation are concerned about the damage being done to their industry by Biden‘s failures to manage our economy and his moves to burden innovators with government bureaucracy and relentless regulation,’ Brian Hughes, a senior adviser to the Trump campaign, told BI in a statement.
Although Musk is increasingly flexing his political power, whoever wins the White House could drastically impact the billionaire and his businesses. Here’s how things could change for Musk under a second Trump administration versus a Biden victory.
Elon under Trump
Musk previously served in business advisory groups under the first Trump Administration but withdrew from office due to disagreements with Trump’s decision to leave the Paris climate agreement in 2017.
If he were to take on a more formal role in a hypothetical Trump second term, Musk would be betting on what would be best for his numerous multibillion-dollar businesses, Bradley Tusk told BI.
Tusk is a venture capitalist and political strategist whose venture capital firm, Tusk Venture Partners, advises startups in highly regulated industries. If he were advising Musk now, Tusk said he would tell him: “You need to be very careful what you wish for – for a number of reasons.”
Under Trump, Tusk said tax cuts and deregulation could lead to a boom for Tesla, XIt is EspaçoX – especially given Trump’s previous effort to develop a Space Force. This could also come with a massive increase in political prestige, but possibly with a decrease in stability in the markets, which Musk depends on to maintain his wealth and power.
“There is potential to really have enormous influence within the Trump administration,” Stacey Lee, a law and ethics professor at Johns Hopkins Carey Business School, told BI. “And when you look at the characteristics of what Trump really respects — he’s popular, he has a management style that’s more unique in his voice — those are all things that Trump really admires, and Musk really admires.”
“In that respect,” she said, “they might be rather strange soulmates.”
Elon under Biden
In a world where Biden is elected again, Musk may not have the influence he seems to want, but Tusk said he would have something that markets and companies depend on for strong growth: stability.
“Musk just got a US$55 billion salary package approved by Joe Biden as president — right now, his life is pretty good,” Tusk said. “And now we have a choice of a president who genuinely believes in clean energy and someone who actively despises it. So for Tesla shareholders, it is much better for them if Joe Biden is president. And they just gave Elon $55 billion to do what’s best for the company.”
However, Lee told BI that a second Biden administration would also be prone to more regulation and pro-union policiesnone of which are very attractive to Musk as a businessman.
“Biden is very traditional in terms of his policies. He’s committed to raising corporate taxes,” Lee said. “Under Trump, we saw them go from 35% to 21%, and now Trump is saying, ‘Hey, if I come in, I’m going to lower it to 20.’ I think that would be music to Musk’s ears.'”
A second Trump term could backfire on Musk
“My initial instinct — I think everyone’s — would be like, ‘Oh, sure, it would be better for Musk under Trump.’ But I think ultimately it would be much worse,” Tusk said.
While Musk may be seduced by the allure of accumulating even more power, Tusk said it’s a double-edged sword for Trump.
Tusk said Biden doesn’t think of Elon as a rival — he probably doesn’t think of him at all. But with Trump, as with so many of his former allies, his affection for Musk could suddenly change, making the Tesla CEO a target for his wrath.
“On Trump’s side, Musk needs to be careful and not rush into this. As seductive as it may sound, it actually ends badly for basically everyone,” Tusk said. “And all the things he values, the things that make him happy — the attention and the relevance — are the same things that make Trump happy.”
“And the only guy you can’t win a war with head-to-head is the president of the United States,” he added.
Representatives for Musk and Biden’s campaign did not respond to Business Insider’s requests for comment.
Read the original article at Business Insider
