Tesla CEO Elon Musk and Former President Trump Rekindle Alliance
Elon Musk and Donald Trump have reconciled their relationship after years of tension, with Trump recently praising the Tesla CEO as “80% super genius” and “well-meaning.” The reconciliation highlights Musk’s potential influence on U.S. policy under a Trump administration.
Renewed Rapport
- Musk and Trump were spotted dining at Trump’s Mar-a-Lago estate in early 2026.
- In a subsequent Air Force One press conference, Trump lauded Musk: “Elon’s great. He’s 80% super genius and 20% he makes mistakes, but he’s a good guy. He’s a well-meaning person.”
- The renewed ties follow Musk’s prior role in Trump’s White House, where he led the Department of Government Efficiency (DOGE) and oversaw spending reforms—before departing to focus on Tesla and SpaceX.
Regulatory Benefits for Tesla
1. Reduced Oversight for Autonomous Tech
- The NHTSA has scrutinized Tesla’s Autopilot and Full Self-Driving systems, but Trump’s deregulatory shift could ease pressure:
- A voluntary framework for self-driving vehicles (January 2025) slashed compliance barriers.
- Relaxed crash reporting rules (April 2025) simplified autonomous vehicle deployment.
- Updated Federal Motor Vehicle Safety Standards (September 2025) eliminated redundant driver-focused requirements.
2. Accelerated Robotaxi Deployment
- Simplified federal standards may help Tesla bypass state-by-state hurdles for its Robotaxi network. Musk’s direct access to Trump could further streamline policy for Tesla and competitors like Waymo.
3. Trade Protection Against Foreign Rivals
- Trump’s tariffs and domestic manufacturing focus may shield Tesla from competitors like China’s BYD, reinforcing U.S.-based EV production and AI development.
Risks and Uncertainties
While regulatory easing could spur innovation, long-term gains for Tesla hinge on:
- Sustained alignment between Musk and Trump.
- Concrete policy actions versus rhetoric.
- Balancing deregulation with public safety concerns.
