Last month, in the waning days of the Biden administration, the Securities and Exchange Commission (SEC) sent a tight deadline to Elon Musk to pay a settlement or face civil charges regarding alleged securities violations during his $44 billion takeover of Twitter in 2022. Musk reacted by posting a social media post, calling SEC Chair Gary Gensler out and demanding to know who had directed the action, whether it was Gensler or the White House. The SEC spokesperson declined to comment, and the White House did not respond.
Musk, a long-time critic of government oversight, has accused the agencies of political harassment and has previously railed against the SEC’s investigations into his companies. Now, with Trump set to take office, concerns are growing that Musk’s businesses may receive lenient treatment.
At least 20 federal investigations and regulatory actions are ongoing or pending against Musk’s companies, including SpaceX, Tesla, and Neuralink, covering issues such as alleged securities violations, the safety of Autopilot and Full Self-Driving systems, potential animal welfare violations, and environmental and licensing issues.
Under Trump, new agency heads have been appointed, including a new SEC chair to replace Gensler. This raises questions about the fate of these investigations, as Trump-appointed officials may prioritize leniency over enforcement.
Musk, who has dubbed himself Trump’s “first buddy,” has frequently visited Trump’s Florida club and has publicly expressed his support for Trump’s nominees. He has also been named to co-lead a private entity advising on slashing budgets and regulations.
Meanwhile, the NHTSA and EPA have opened multiple investigations into Tesla, covering issues such as Autopilot and FSD safety, driver-assistance technology, and vehicle emissions. Some legal experts caution that the new administration may prioritize law and order and treat all Americans equally, but others believe that the lack of progress in ongoing investigations could be a sign of insufficient evidence rather than political interference.
As for SpaceX, Musk has faced scrutiny over environmental concerns, including the dumping of pollutants and alleged license violations. Any investigation into Musk’s contacts with Russian President Vladimir Putin, reportedly a regular visitor to SpaceX headquarters, may also be unlikely under Trump.
It remains to be seen how Trump’s administration will handle the investigations and regulatory actions against Musk’s companies, but one thing is clear: with his newfound influence and connections to the new president, Musk will likely have an extraordinary amount of clout with the administration.