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For months, Trump has reportedly been considering a role for Musk, recognising his immense influence as one of the wealthiest individuals globally and the leader of several powerful companies, including Tesla, SpaceX, and the social media platform X read more
 "Trump-Musk's shady dealings? Former president to hire Elon in the Cabinet, may give major tax cuts to Tesla")
Musk’s close association with Trump could have far-reaching consequences for his business ventures, like Tesla, SpaceX, and X. If Trump returns to office, he might offer Musk a cabinet or advisory role, depending on Musk’s willingness to participate. Composite Image. Includes AI generated image (on the right).
In a recent interview, former President Donald Trump hinted at the possibility of involving Tesla CEO Elon Musk in his administration if he wins the November election. The growing rapport between Trump and Musk has sparked speculation about the Tesla CEO’s potential influence in a second Trump presidency.
For months, Trump has reportedly been considering a role for Musk, recognising his immense influence as one of the wealthiest individuals globally and the leader of several powerful companies, including Tesla, SpaceX, and the social media platform X. Musk’s endorsement of Trump in the presidential race has further strengthened their alliance.
Musk’s Criticism of the Federal Reserve and Potential Economic Impact
Meanwhile, Musk has been vocal about his concerns regarding the Federal Reserve’s policies, particularly their impact on Tesla’s sales in the US market. He believes that the Fed’s interest rate policies have been a significant factor in the declining demand for Tesla vehicles domestically.
According to Musk, a reduction in interest rates could lower borrowing costs, potentially boosting consumer demand. The Federal Reserve is expected to begin a long cycle of easing monetary policy starting in September, with interest rates possibly being cut by nearly half by the end of 2026. However, some experts caution that even with lower rates, Tesla may not see a disproportionate increase in profits, highlighting the complexity of the situation.
Implications of Musk’s Alignment with Trump
Musk’s close association with Trump could have far-reaching consequences for his business ventures, including Tesla, SpaceX, and X. If Trump were to return to office, he has indicated that he might offer Musk a cabinet or advisory role, depending on Musk’s willingness to participate.
During discussions, Musk proposed the creation of a “government efficiency commission” aimed at overseeing federal spending and reducing waste, expressing his interest in being part of such a commission.
Since then, Musk has shared a few memes on X, formerly Twitter, about him leading DOGE, or the Department of Government Efficiency.
I am willing to serve pic.twitter.com/BJhGbcA2e0
— Elon Musk (@elonmusk) August 20, 2024Had Elon not been in the picture, one of the biggest policy changes under a new Trump presidency would have been the elimination of the $7,500 federal subsidies for electric vehicle purchases. This could’ve presented a major challenge for Musk.
Although Trump expressed his general support for electric vehicles, he also voiced his interest in other types of vehicles, including gasoline-powered cars and hybrids. He emphasised that no final decision has been made regarding the EV tax credits, indicating that the future of this policy remains uncertain.
The possibility of Musk taking on a role in a future Trump administration adds a layer of complexity to both the political and business landscapes. The decisions made in this regard could have significant implications for Musk’s empire, as well as for broader economic and policy outcomes. As Trump and Musk continue to navigate their relationship as businessmen and people who could effect policy changes, the potential collaboration between these two figures is likely to be a focal point of attention in the coming months.
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English (US) ·