### Elon Musk’s Backing Helps Secure Trump 2024 Victory, Sparks Concerns Over Potential Conflicts

Elon Musk's unwavering support played a critical role in Donald Trump’s conclusive victory in the 2024 presidential election. In the months leading up to the election, Musk, the world’s richest man, utilized his considerable influence to bolster the Maga movement. He publicly advocated for Trump on major podcasts and leveraged his control over the social media platform X to sway political discourse. Musk’s America Pac contributed nearly $120 million to Trump’s campaign efforts.

Trump, now preparing for his second term, has already hinted at how he might repay Musk. Last month, Trump told reporters he intends to appoint Musk as "secretary of cost-cutting." Musk humorously suggested he could serve as head of the "Department of Government Efficiency" (Doge), aiming to reduce government spending by $2 trillion. However, experts warn that such cost-cutting measures could lead to policy changes impacting Musk’s conglomerate, including Tesla, SpaceX, X, and Neuralink.

The relationship between Trump and Musk is openly transactional and unprecedented in modern U.S. politics. Columbia Business School professor Gita Johar noted, "We've seen lobbying efforts and Super Pacs, but this is a different level we've never seen before. There will be some quid pro quo where he [Musk] will benefit." Johar suggested that labeling this situation as a mere "conflict of interest" might be an understatement.

Tesla, Musk's electric vehicle company, has already seen immediate benefits from Trump's win. Tesla shares soared 13% to a 52-week high just after the election was called, boosting its market capitalization to $1 trillion—the highest in two years. This surge added $26 billion to Musk's own wealth, despite Trump’s prior vocal criticism of electric vehicles (EVs), which he branded as a “Green New Scam.”

While Trump’s administration is expected to roll back tax credits for EVs—an action harmful to newer startups and traditional automakers—Tesla stands to gain. Having already capitalized on these credits, Tesla's established market dominance could provide a competitive edge in a subsidy-free environment. “Tesla has the scale and scope that is unmatched,” explained Wedbush analyst Dan Ives.

Additionally, Tesla's future could be influenced by Trump's proposed tariffs. While import tariffs might shield Tesla from cheaper Chinese EVs, they could also raise production costs due to Tesla's reliance on Chinese goods and materials. Tariffs on steel and rare earth metals would affect the production of Tesla's Cybertruck and other components vital to its vehicles.

Musk’s collaboration with Trump could also influence decisions related to autonomous vehicle regulations. Investigations by the National Highway Traffic Safety Administration (NHTSA) into Tesla’s Autopilot feature could see leniency, potentially smoothing Tesla's rollout of its autonomous driving technologies. Musk has argued for fewer regulatory constraints and a federal approval process to streamline these innovations.

Moreover, Musk’s space exploration company, SpaceX, could gain significantly from their partnership. In 2021, SpaceX secured a $3 billion federal contract and now vies for additional contracts with the U.S. Space Force totaling $5.6 billion. Trump's administration might also favor Musk's Starlink for expanding rural internet access, a move already praised during Trump's election night speech.

Neuralink, Musk’s brain-computer interface company, could also benefit if a Trump-led FDA eases scrutiny over its practices. Similarly, X, which played a vital role in disseminating pro-Trump content during the campaign, may avoid regulatory challenges under Trump’s administration.

Though this intertwined relationship could invite lawsuits alleging misconduct, legal challenges might not detract Musk from pushing his policy objectives. As UC Berkeley professor Dan Schnur suggests, Musk's potential influence within the administration is unparalleled, creating a scenario with wide-reaching implications for both the tech mogul's business empire and U.S. policy.