Elon Musk’s regulatory challenges and potential influence under Trump’s presidency
Within this political framework, legal experts express differing views on whether Musk’s relations with Trump might affect investigation outcomes, although the integrity and momentum of current cases could maintain regulatory standards despite political shifts.
In the final days of Joe Biden’s US presidency, the SEC pressured Elon Musk to settle allegations of securities violations related to his 2022 Twitter takeover or face civil charges. Musk’s response, shared via social media, included a legal letter accusing the SEC of an ‘improperly motivated’ ultimatum and demanding to know if the White House had influenced the action. Both the SEC and White House declined to comment.
As Donald Trump prepares to take office, questions arise about how Musk’s ties to the incoming administration could impact ongoing federal investigations into his business ventures, including Tesla, SpaceX, and Neuralink. Sources reveal at least 20 active probes into issues ranging from Tesla’s driver-assistance systems to SpaceX’s environmental practices.
Critics warn that Trump’s administration might scale back regulatory scrutiny, while legal experts argue that evidence-based cases could still proceed regardless of Musk’s political connections. Musk’s proximity to Trump has intensified since the election, with Musk participating in high-profile meetings and being appointed to co-lead a government efficiency initiative.
Musk has openly discussed using his position to push policies that could benefit his businesses, such as easing driverless-vehicle regulations. Meanwhile, ongoing investigations, including those by the DOJ and the National Highway Traffic Safety Administration, face uncertainties over enforcement under the new administration.
Musk’s business dealings, including contacts with foreign leaders and regulatory disputes, continue to draw attention. Despite allegations of political interference, agencies like the EPA and NASA have emphasised their commitment to legal responsibilities. However, critics fear that Musk’s influence could undermine the integrity of federal oversight during Trump’s second term.