Yahoo Finance How Trump and Musk Joining Forces Could Impact Your Wallet
Republican presidential candidate Donald Trump and Tesla CEO Elon Musk are reportedly in talks about a potential advisory role for Musk. Both men have been talking on the phone “several times a month” and discussed policies regarding immigration, the economy, technology and science (including the U.S. Space Force) The Wall Street Journal reported.
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While Musk’s potential role isn’t “fully hammered out and might not happen,” Trump told Musk he would like the Tesla CEO’s involvement in his presidency if he were to be re-elected in November.
Following the report, Musk posted on X (formerly Twitter, which he acquired for $44 billion in April 2022): “There have not been any discussions of a role for me in a potential Trump Presidency.”
Musk previously served on two White House advisory groups under Trump’s first term — roles he left due to disagreements over the former president’s backing out of the Paris Climate Agreement.
“Im [sic] departing presidential councils. Climate change is real. Leaving Paris is not good for America or the world,” Musk posted on X on June 1, 2017.
In turn, Thomas Savidge, economist at the American Institute for Economic Research, noted that Musk may serve a similar capacity in a future Trump administration.
If it were to happen, what would Musk’s involvement in a second Trump administration mean for your wallet?
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Electric Vehicles (EVs)
According to Peter Cohan, associate professor of Management Practice at Babson College, an area where Musk’s role could affect consumers is in the pricing and convenience of electric vehicles.
“Since Trump has said he is against EVs and Musk has said he is against subsidies for EVs, either Musk does not care about Tesla’s future or both Musk and Trump are talking to appeal to their followers and won’t follow through with actions consistent with those statements,” he said.
Simply put, said Cohan, given the conflict between what Musk and Trump are saying about EVs and Musk’s role as Tesla CEO, it is hard to predict how EV consumers would be affected by his potential role in a hypothetical Trump administration.
Energy and Transportation
Other experts, such Michael Collins, CFA, founder and CEO, WinCap Financial, argued that if Trump and Musk were to join forces, the impact on consumers’ wallets could be significant.
“As a successful businessman and innovator, Musk could potentially be appointed to a high-level position in the administration such as Secretary of Energy or Commerce,” said Collins. “This would give him a platform to influence policies and regulations related to industries such as energy, transportation and technology.”
In turn, Collins argued that depending on their shared goals, this collaboration could lead to changes in prices and availability of products in these sectors, ultimately affecting the wallets of American consumers.
“For example, if they prioritize promoting renewable energy sources like solar power, it could lead to increased investment in that sector but also potentially higher costs for consumers,” Collins noted.
Matt Willer, managing director of capital markets, partner, Phoenix Capital Group Holdings, also argued that with Musk’s existing commitments, it would be surprising if he could take any full time role.
“Advisory capacity is more likely and the logical category is energy,” said Willer. “The attribute that an eccentric Musk brings is levity — a material part of his net worth is contingent on green energy and electrification — however he is a realist, understanding we need to produce more oil and gas domestically to fuel a more realistic multi-decade energy transition.”
Deregulation
On the other hand, Collins noted that if they focus on deregulation and cutting costs for businesses, it could result in lower prices for certain products but potentially at the expense of consumer safety and protection.
“The partnership between Trump and Musk has the potential to greatly impact American consumers’ wallets in various ways depending on their agendas,” added Collins.
Savidge also noted that how this potential partnership could impact consumers — regardless of the sector — hinges on one question: Will a Trump/Musk team up result in more or less government intervention in the economy?
“If there are greater taxes and regulations, consumers will be negatively impacted. If they are able to reduce taxes and regulations, it will be a win for consumers,” he added.
More Access to Tech and Innovation
According to Joe Camberato, CEO, National Business Capital, Musk’s involvement in government could have a major positive impact across a variety of sectors.
“Given his track record with PayPal, Tesla, SpaceX and Neuralink, Musk’s expertise spans fintech, electric vehicles, space exploration and medical tech,” he said. “It’s rare to find someone with his breadth of knowledge and experience, and his involvement could help the U.S. maintain its position as a leader in innovation.”
Camberato said he was “surprised” that Musk could potentially get involved, given the potential for intense scrutiny.
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“Despite this, Musk’s potential support could greatly benefit the country, enhancing technological growth and accessibility for all Americans,” he added.
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