Elon Musk’s companies could land more government contracts thanks to his new role in Donald Trump’s government.
The world’s richest man has a sprawling business empire spanning several industries.
His companies include electric vehicles (Tesla), social media (X), artificial intelligence (xAI), brain-computer interfaces (Neuralink), tunneling (The Boring Company), and aerospace (SpaceX).
Musk is likely to take over the new Department of Government Efficiency and has spoken openly about his aim to cut spending by around $2 trillion.
The billionaire has stated he wants “super high IQ” workers for the new department, but it remains unclear what the pay grade is, or even whether the new roles are paid.
Many of these ventures already benefit from significant federal contracts and could stand to gain further under a less regulated environment.
Federal Contracts and SpaceX’s Lucrative Deals
SpaceX, Musk’s aerospace company, has been a major recipient of government funding, receiving over $19 billion in federal contracts, according to FedScout.
The company is positioned to continue earning billions annually from these contracts for years to come, says FedScout CEO Geoff Orazem.
Under a second Trump presidency, SpaceX could secure even more lucrative deals as the administration prioritizes private-sector innovation in space exploration and defense.
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Deregulation and Oversight Reduction
Musk has long criticized government regulations, claiming they stifle innovation. He may soon have the opportunity to reshape federal oversight.
Earlier this month, Musk and former Republican presidential candidate Vivek Ramaswamy were tapped by President-elect Donald Trump to co-lead the Department of Government Efficiency (DOGE), a new initiative aimed at reducing government bureaucracy.
In a Wall Street Journal op-ed, Musk and Ramaswamy outlined DOGE’s mission to implement regulatory rescissions, administrative reductions, and cost savings.
They argue many federal regulations, not passed by Congress, could be nullified through executive action.
The initiative also calls for extensive audits of federal agencies, pointing to the Pentagon’s failure to pass seven consecutive audits as a key example of inefficiency.
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Implications for Musk’s Businesses
Musk’s companies could benefit significantly from a deregulatory push.
CNBC technology reporter Lora Kolodny said:
“The number one way Elon Musk and his companies would benefit from a Trump administration is through deregulation and defanging—giving fewer resources to federal agencies tasked with oversight of him and his businesses.”
“The number one way Elon Musk and his companies would benefit from a Trump administration is through deregulation and defanging—giving fewer resources to federal agencies tasked with oversight of him and his businesses.” said CNBC technology reporter Lora Kolodny.
Less regulatory scrutiny could ease the path for Neuralink’s brain-implant projects, streamline environmental approvals for The Boring Company’s tunneling projects, and accelerate Tesla’s rollout of autonomous vehicle technologies.
Meanwhile, reduced oversight of SpaceX could enable faster deployment of its Starship rockets and satellite networks.
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The Broader Context
Musk’s dual role as a businessman and government advisor underlines the interconnectedness of his empire with federal policy.
While deregulation may spur innovation and profitability for Musk’s ventures, critics warn it could reduce accountability and oversight, leading to potential risks for consumers and public resources.
DOGE’s ambitious agenda to streamline government operations could align closely with Musk’s vision of a faster, less encumbered innovation pipeline.
However, the long-term impact on regulatory safeguards and federal oversight remains uncertain.
