Elon Musk's Trump Ties: Tesla's Regulatory Hurdles May Vanish

The relationship between Elon Musk and President Trump has sparked speculation that regulatory hurdles facing Tesla could be removed in the near future. Musk, a vocal critic of the U.S. government, has long argued that extensive federal investigations and safety plans have hindered Tesla's development of self-driving vehicles. With Trump's close relationship with Musk, these federal-level troubles may dissipate in a matter of weeks or months.

Potential targets for regulatory relief include collision investigations of Tesla's semi-autonomous vehicles, a Department of Justice criminal probe into whether Musk and Tesla exaggerated the capabilities of their self-driving technology, and government mandates to report accident data from vehicles using Autopilot technology. Missy Cummings, a former senior safety advisor at the U.S. National Highway Traffic Safety Administration, believes that Musk's influence could lead to the disappearance of these investigations.

The Trump administration has not yet announced any policies directly benefiting Tesla or Musk's other companies. However, compared to attacking regulatory agencies, shutting down federal investigations, or abandoning safety plans would be easier to implement. Investigations into Tesla could be halted overnight by a new agency head, and safety plans established through executive orders could be swiftly scrapped. Unlike other recent "dismantling actions," suspending such investigations and plans would not face legal challenges.

Daniel Ives, a senior technology and automotive industry analyst on Wall Street, predicts that Trump's election and his relationship with Musk will substantially eliminate the long-standing regulatory constraints that have curbed Tesla's growth. As the Trump administration continues to take shape, the automotive industry and investors will be watching closely to see if these predictions come to fruition.