Musk and Trump

Photo by Tabrez Syed on Unsplash

Elon Musk, the World’s Richest Man, and pioneer in eco innovation has struck an unlikely union with Donald Trump, President Elect and chief climate denier. Indeed, Musk is expected to set up offices in the White House. Is this a brief flurry of between two mega egos or could Musk be playing a longer, more nuanced, game of strategic engagement, business pragmatism, and more imaginatively, Mars?

Influence from Within.   

Musk’s decision to join Trump’s advisory councils was likely driven by his belief that engagement is the most effective way to influence policy.  With Tesla, SpaceX, and his other ventures deeply tied to government contracts, subsidies, and regulations, Musk is positioning himself to shape policies in favour of renewable energy, electric vehicles, and space exploration. 

We might also conjecture that Musk might be testing, nurturing his own political ambitions. There will be a Presidential position vacant in five years’ time. 

And for Trump, Musk’s appointment to lead the new Department for Government Efficiency, if most likely Musk’s pay back.  In his second term Trump’s legacy demands he move beyond rhetoric and actually drain the Washington swamp.  Musk has been given that job. 

Trade war risks Musk’s wealth. 

Trump’s trade war, particularly with China, introduces significant risks for businesses with global supply chains. For Musk, Tesla and SpaceX, these tariffs could have had both direct and indirect impacts on company operations, profitability, and, consequently, his own wealth. 

Tesla’s reliance on Chinese imports for critical components, such as batteries and electronics, exposes the company to increased costs due to tariffs, eroding profit margins or forcing them to raise prices. Additionally, tariffs on raw materials like aluminium and steel add further cost pressures and compound the financial strain.

Chinese buyers and export challenges

China represents a crucial market for Tesla not only as a manufacturing hub but also as a consumer base. Retaliatory tariffs on U.S. goods will make Tesla’s cars more expensive for Chinese consumers, potentially dampening sales in one of the world’s largest automotive markets.  

However, Tesla’s Shanghai Gigafactory has already mitigated some exposure, allowing local production to sidestep tariffs. More intriguingly, U.S. and EU tariffs on Chinese EV imports could serve to protect Tesla from intensifying competition, particularly as Chinese automakers aggressively expand into Western markets.

Yet, Musk’s priorities appear to be shifting beyond Tesla. His increasing focus on Robots (Optimus),  SpaceX and Mars suggests bigger plays - one that may include U.S. federal support for deep-space exploration.

SpaceX, Trump, and the Mars Mission

Trump’s first administration emphasised space exploration, launching the U.S. Space Force and strengthening NASA’s Artemis program. These initiatives aligned with Musk’s ambitions, benefiting SpaceX through increased government contracts and regulatory backing.

A second Trump administration could further cement these ties, potentially positioning Musk as the leading force behind an American-led Mars mission. Given Trump’s preference for bold, legacy-defining projects, a “Man on Mars” initiative could be his JFK moment - revitalising U.S. industrial and technological dominance while uniting a divided electorate under a grand national ambition.

Several factors would determine whether such a deal materialises:

1. Trump’s legacy aspirations – A Mars mission could secure his place in history.

2. Existing SpaceX momentum – SpaceX is already leading in reusable rockets and deep-space exploration.

3. Political and financial feasibility – Massive funding and bipartisan support would be required, making a broad economic and sustainability case essential.

Why this matters for the Green Economy

If a Musk-Trump deal exists, it could have far-reaching implications:

• A space-tech-driven push for sustainable innovations applicable to Earth, creating economic and environmental benefits.

• A shift in geopolitical power, where space and green technology become king and queen of global political and economic ambition.
  

Speculation is high, and Trump’s inauguration speech on January 19 may offer clues. I’ll certainly be watching it. If this alliance is as strategic as it seems, it could redefine both space exploration and the green economy. Buckle up—the candle is lit.