Elon Musk, described as the ‘greatest capitalist’ in modern day America, had an outsized influence that was pivotal in President-elect Donald Trump’s November 5 victory. His bold decision to back Trump campaign, however, didn’t come at the drop of a hat.
Based on his own pronouncements, Musk had admitted he voted for Democrats in his younger years because they are mostly the "kindness party". But he has since gravitated toward Republican ideas. This hit a climax with his decision to back Trump for the 2024 presidential election.
In the past I voted Democrat, because they were (mostly) the kindness party. But they have become the party of division & hate, so I can no longer support them and will vote Republican.
Several incidents, as well as strategic and ideological reasons, has served as trigger for this move, as Musk himself explained:
#1. 'Free speech is priceless'
Since acquiring Twitter (now X) for $44 billion in October 2022, Musk has promoted a platform of unrestricted speech, reducing content moderation that he believes stifles free expression.
X has kept “parody” accounts (though clearly marked as such) that also use Musk's name on the platform. It's a big change.
On January 8, 2021, while still US president, Trump was banned “permanently” from Twitter “due to the risk of further incitement of violence.” Musk saw this move as a threat to free speech, and views X as a “digital town square” where open discourse is allowed.
Musk perceived a growing trend of censorship and suppression of diverse viewpoints on social media. Many advertisers even boycotted Twitter after Musk took over, but the billionaire was unmoved. Musk has repeatedly said free expression is crucial.
“Some things are priceless. Whether I lose money or not, that’s a secondary issue compared to ensuring the strength of democracy, and free speech is the bedrock of a functioning democracy,” Musk told Tucker Carlson in an April 2023 interview.
#2. Regulations
Musk also sees over-regulation as an obstacle to progress, and sees Trump as a potential ally in creating a business-friendly regulatory landscape.
Trump’s administration previously promoted deregulation, which aligns with Musk’s goals for “less government”. He anticipates similar policies if Trump returns to office.
In December 2021, citing what he perceived as California’s regulatory overstretch and high cost of living, Musk moved Tesla’s corporate headquarters from California to Texas.
In 2022, the US National Highway Traffic Safety Association (NHTSA) ruled that Teslas’ “Boombox mode” (part of the car's firmware, which allows owners to replace their standard horn with a variety of sounds, including farts, goat noises, applause, and more, and own custom sounds), is illegal, forced Tesla to recall nearly 600,000 vehicles due to the feature.
In September, Musk also excoriated the US Federal Aviation Administration (FAA) for proposing fines to penalise SpaceX for alleged launch violations. FAA announced that SpaceX faces as much as $633,009 in civil penalties over allegations it violated license requirements during two launches in 2023. This came after SpaceX criticised what it sees as unacceptable delays in the licensing process for the next launch of Starship, the world’s biggest rocket.
Space X is the only US rocket launcher that brings cargo and astronauts to the International Space Station since the Space Shuttle was retired in 2011.
#3. Exposing “woke”
Musk has consistently expressed disdain for what he calls the “woke mind virus”, criticising progressive policies, including those related to gender identity and censorship.
This stems from his belief that it promotes excessive political correctness, stifles free speech, and enforces conformity of thought. He argues that the focus on identity politics and social justice issues distracts from pressing global challenges, like technological innovation and economic growth.
His stance aligns closely with Trump’s agenda, especially Trump’s plans to roll back certain regulations on transgender rights, which resonate with Musk’s personal and political.
#4. Tax benefits
Trump has floated the idea of appointing Musk as a “secretary of cost-cutting”, potentially offering significant tax advantages. Mainstream US media say this could include deferred capital gains taxes if Musk were to take a federal position.
Such benefits would substantially reduce Musk’s tax liabilities, making Trump’s fiscal policies highly appealing.
However, Musk said $7,500 government subsidy for every purchase of Made-in-USA electric vehicle, including the rollout of a charging infrastructure should be “deleted”.
In an interview with the Wall Street Journal in 2021, Musk said: “We don't need the $7,500 [electric vehicle] tax credit. Honestly, I would just cancel this whole [infrastructure] bill. Don't pass it. That's my recommendation.”
The interviewer then asked: “What about the support, though, for the charging network? Musk said: “Unnecessary. I mean, do we need support for gas stations? We don't. So, there's no need for support for a charging network. Delete it. Delete. I’m literally saying get rid of all subsidies. But also for oil and gas.”
In 2022, US subsidies for oil and gas reached an estimated $20 billion, largely comprising tax incentives and research support for fossil fuel companies, according to the Environmental and Energy Study Institute.
#5. Contrarian appeal
Musk revels in his contrarian, anti-establishment nature. He is seen as a rebel – against "Big Auto" (with Tesla), "Big Space" (with Space X), "Big Tech" (with Twitter) – often taking positions that defy elite Silicon Valley norms.
In August 2021, President Joe Biden celebrated ambitious EV goals by US automakers – but did not invite the world’s largest maker of EVs: Tesla.
While those invited (GM, Ford, Stellantis) were making mostly internal combustion vehicles and Tesla makes nothing but battery-powered EVS, Biden described GM CEO Mary Barra as the “leader” of the EV industry.
Musk, perceived as anti-union, was apparently ignored on concerns that Musk will say something that could embarrass the Biden presidency or the administration.
This support is part of Musk's broader approach to influence policy in ways that align with his business interests and libertarian leanings, as well as his resistance to social policies he perceived as Marxist.
Asked by Tucker Carlson whether or not he ever doubted his decision to go all in, Musk said: “My philosophy is you play to win. You don’t play to win by half measure.”
By shelling out $44 billion to buy Twitter, many of Musk’s fans said he invested in reshaping the future, and see X as a force rewriting history. While many were stumped and inspired in equal measure by Musk’s all-in decision to back Trump, the former president won by massive lead against US Vice President Kamala Harris in the November 5, 2024 vote. Trump’s victory marks the first time in over a century that a former president has returned to office after losing a re-election bid. (The last president to achieve this was Grover Cleveland in the late 19th century).
On Thursday (November 7), Musk won in a US Appeals Court ruling which upheld a jury’s verdict clearing Musk and Tesla of liability over allegations they misled investors when Musk posted on social media in 2018 that he had “funding secured” to take Twitter private.
Trump thanked Musk, and called him a “new star” when it became clear on November 6, that the former US president had secured a second White House term. It is first time in over a century that a former president has returned to office after losing a re-election bid. (The last president to achieve this was Grover Cleveland in the late 19th century).
https://www.youtube.com/watch?v=nQJ88bs0SUI
