Musk, Trump, And The Future Of US Business Policy: What Corporate America Stands To Gain

Elon Musk, once seen primarily as a visionary tech entrepreneur, has now emerged as a significant political power broker. With deepening ties to Donald Trump and growing influence in conservative circles, Musk’s political alignment is reshaping corporate strategies across industries.

Major companies, from Boeing to Amazon, have increasingly sought out Musk as he strengthens his foothold in both the business and political spheres. The question now is: How could Musk’s influence shape US business policy, and what does corporate America stand to gain from this alignment?

As the US government navigates economic and technological shifts, Musk’s role as both a private-sector innovator and political influencer could have far-reaching consequences, particularly in areas such as deregulation, federal contracts, and trade policy.

Musk’s Expanding Political Influence

Musk’s relationship with US politics has evolved significantly over the years. Initially, he positioned himself as a centrist figure, engaging with both Democratic and Republican administrations. However, his growing criticisms of government regulations, labor unions, and progressive policies have brought him closer to conservative policymakers and, most notably, to Trump.

Key moments in Musk’s political shift include:

• His vocal opposition to COVID-19 lockdowns and vaccine mandates, aligning him with right-wing critics of government intervention.
• His takeover of Twitter (now X), which he positioned as a free-speech platform, attracting support from conservatives.
• His criticism of ESG (Environmental, Social, and Governance) policies and government subsidies, despite Tesla historically benefiting from federal incentives.
• Increasing interactions with Trump’s circle and Republican lawmakers, hinting at a future political agenda that aligns with business-friendly deregulation.

This growing political alignment has made Musk a key player in shaping policies that could directly benefit corporate America.

Corporate America’s Strategic Interest in Musk

Musk’s influence extends beyond his personal wealth—his control over major companies and platforms makes him an invaluable ally for corporate interests. Companies are aligning with him for several reasons:

• Political Access: Musk’s proximity to Trump and other conservative policymakers provides businesses with a direct channel to influence economic policies.
• Technological Leadership: SpaceX, Tesla, and Neuralink are at the forefront of AI, automation, and space exploration—sectors that are heavily regulated and dependent on government contracts.
• Media and Public Perception: Through X (formerly Twitter), Musk controls a major social media platform, allowing businesses to shape narratives, counter regulatory criticism, and engage with policymakers directly.

For companies seeking regulatory rollbacks, favorable trade policies, and government contracts, Musk’s influence is an asset.

Policy Areas Where Musk’s Influence Could Shape Business Interests

Regulatory Environment

One of Musk’s primary objectives has been reducing government regulations across industries. His companies, particularly Tesla, SpaceX, and The Boring Company, often clash with regulators on environmental, safety, and labor policies.

Possible regulatory shifts benefiting corporate America include:

• Looser emissions regulations: Tesla stands to benefit from deregulated EV markets while fossil-fuel-reliant industries may gain from rollbacks on environmental policies.
• Reduced AI and automation oversight: Musk has warned about AI risks but also advocates for lighter regulations that allow businesses to scale without heavy government intervention.
• Weakened labor protections: Musk’s anti-union stance aligns with broader corporate efforts to limit labor regulations and worker protections.

Federal Contracts and Public-Private Partnerships

Musk’s companies have increasingly secured federal contracts, particularly in defense, space exploration, and infrastructure. With greater political influence, these deals could expand:

• SpaceX’s dominance in military and NASA contracts could grow under a more defense-oriented policy approach.
• The Boring Company could secure federal infrastructure projects with promises of cost-cutting innovations.
• Neuralink and AI ventures could gain government backing in military and healthcare applications.

As Musk’s influence strengthens, his companies may receive preferential treatment in government procurement, setting a precedent for other corporations to follow suit.

Trade and Economic Policies

Musk has positioned himself as a critic of China’s economic influence while simultaneously benefiting from its market. His relationship with Trump could shape future trade policies:

• Tariffs and trade restrictions on China could impact Tesla’s supply chain while benefiting domestic manufacturers.
• Reshoring incentives could encourage companies to relocate production from China to the US, aligning with Musk’s advocacy for domestic manufacturing.
• Federal subsidies and tax incentives for industries like EVs, AI, and space technology could be tailored to favor Musk’s enterprises and corporate allies.

The broader implication is a shift toward protectionist economic policies that benefit US-based corporations while restricting foreign competition.

Risks and Controversies Surrounding Musk’s Political Alignment

While Musk’s corporate influence in politics is growing, it comes with risks that businesses must consider:

• Consumer and Employee Backlash:
  Aligning too closely with Musk and Trump could alienate a significant portion of consumers and employees, particularly those with progressive values. Companies like Disney and Apple have already faced political backlash for their business decisions, and Musk’s allies may face similar scrutiny.

• Regulatory and Legal Uncertainty:
  While Musk seeks deregulation, his aggressive tactics and public controversies could attract unwanted government scrutiny. Antitrust investigations, labor disputes, and privacy concerns surrounding his businesses may escalate under future administrations.

• Market Volatility:
  Musk’s unpredictability—frequent public spats, political shifts, and abrupt business decisions—poses a risk to companies tying their strategies too closely to his influence. A sudden policy shift or public fallout could disrupt corporate plans.

Conclusion

Elon Musk is no longer just a billionaire entrepreneur—he is now a political force with the power to shape US business policy. Corporate America is increasingly aligning with him, seeing an opportunity to benefit from deregulation, favorable trade policies, and lucrative government contracts.

However, this alignment comes with risks. The evolving relationship between Musk, Trump, and big business could reshape economic policies, but it also raises concerns about political instability, regulatory scrutiny, and consumer pushback.

The question remains: Will Musk’s influence lead to lasting economic policy changes, or is corporate America making a short-term bet in an unpredictable political landscape? Only time will tell, but one thing is certain—Musk’s role in shaping the future of US business policy cannot be ignored.

Author: Ricardo Goulart