Can Musk survive the Trump fallout? US agencies eye his companies closely
Elon Musk's feud with President Trump could intensify regulatory scrutiny across his companies, including Tesla, SpaceX, Neuralink, and X, as multiple US agencies already have investigations or reviews underway.Musk's feud with President Donald Trump has put his vast business empire under intense scrutiny, making the threat of regulatory action more real than ever. Multiple US agencies are already investigating Musk's companies, and the escalating political clash raises a pressing question: Will Washington tighten its grip on one of its most influential entrepreneurs?advertisementFrom autonomous Teslas to rockets and brain implants, Musk's ventures—Tesla, SpaceX, Neuralink, X (formerly Twitter), and The Boring Company — fall under the watch of at least seven federal regulators, many of whom have ongoing probes or growing concerns.FCC: Starlink's Bandwidth Battle
In April, the Federal Communications Commission (FCC) launched a review of spectrum-sharing rules that directly impact SpaceX's Starlink system. SpaceX wants access to expanded spectrum to enhance its satellite-based internet — but the FCC review could complicate or slow that plan.FDA: Neuralink Under the MicroscopeMusk's Neuralink, which is testing brain-computer interfaces in humans, received FDA approval for clinical trials — but only after an initial rejection over safety concerns. The FDA continues to oversee those trials in the U.S. and abroad, including in Canada.EPA: SpaceX and Texas Environmental ScrutinyadvertisementAt its Texas launch site, SpaceX faces pressure from the Environmental Protection Agency over wastewater discharges and broader environmental reviews under the National Environmental Policy Act. Wildlife impacts are also under federal scrutiny.NHTSA: Tesla's Robotaxi Plans in the CrosshairsThe National Highway Traffic Safety Administration (NHTSA) recently pressed Tesla for details about its upcoming robotaxi service in Austin, Texas. With concerns around poor weather performance and visibility, Tesla's Full Self-Driving system is under ongoing investigation.FAA: Launch Violations and FinesThe Federal Aviation Administration proposed a $633,000 fine last year against SpaceX for violating license conditions prior to two launches. That case is still open, and new restrictions could follow given SpaceX's volatile test history.SEC: Musk Faces Legal Heat Over Twitter DealThe Securities and Exchange Commission (SEC) is litigating Musk over his $44 billion Twitter takeover and probing Neuralink for potential securities issues. A response is due next month.FTC: Privacy, Data, and Antitrust ConcernsThe Federal Trade Commission (FTC) is investigating Musk's platform X for data privacy and child protection issues. It is also probing alleged coordination between watchdog groups Musk has accused of organizing a boycott of X.(With inputs from Reuters)Tune InTrending Reel
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Time of India
27 minutes ago
- Time of India
Elon Musk deletes post claiming Trump appears in Epstein files amid ongoing feud
Elon Musk on Sunday deleted a controversial post in which he claimed that US President Donald Trump appears in the unreleased Jeffrey Epstein files, a move that may signal a cooling of tensions after days of public sparring between the two billionaires. 'Donald Trump is in the Epstein files. That is the real reason they have not been made public. Have a nice day, DJT!' Musk had posted on X, the platform he owns, on Thursday. In a follow-up, he urged followers to 'mark this post for the future' because 'the truth will come out.' Both posts have been deleted. The accusation marked a dramatic escalation in Musk's ongoing feud with Trump, which began over the president's support for a controversial bill dubbed the 'Big Beautiful Bill.' Musk, who has slammed the legislation as a 'disgusting abomination,' claimed it was rushed through without proper scrutiny and accused the administration of betraying EV makers like Tesla. Trump, speaking at a press briefing, dismissed Musk's concerns and said: 'Elon's upset because we took the EV mandate, which was a lot of money… I can understand why he's upset.' The feud spiralled after Trump said he was 'disappointed' in Musk. Musk fired back, saying, 'Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51–49 in the Senate… Such ingratitude.' Live Events But hours after the Epstein claim, hedge fund manager Bill Ackman publicly urged Musk to reconcile with Trump. Musk's short reply — 'You're not wrong' — coupled with the deletion of the post, has been interpreted by some as a sign of de-escalation. — elonmusk (@elonmusk) Though Trump's name has appeared in various documents related to Epstein, including flight logs and contact books, no charges have been brought against him. The White House reportedly called Musk's comments 'an unfortunate episode,' while Trump, in a call with Politico , played down the spat, saying, 'It's going very well, never done better.' Musk has not explained why he deleted the post, but the timing suggests an attempt to contain the fallout from a claim that could have far-reaching political consequences.
Mint
34 minutes ago
- Mint
It's the Republicans, not Musk, who are serious about cutting spending
Elon Musk and House Republicans both promised to tackle federal spending. It turns out only one of them was serious, and it wasn't Musk. Musk, who broke with President Trump this week after labeling Republicans' reconciliation bill a 'disgusting abomination," might claim some authority. As leader of the Department of Government Efficiency, he was the public face of Trump's assault on government. Remember him feeding the U.S. Agency for International Development into the wood chipper? Encouraging civil servants to quit or be fired? The chain saw? Musk loves the theatrical: He helped scuttle an omnibus spending bill last year mainly because of its page length. The DOGE cuts thrilled Trump's base, horrified Democrats and traumatized civil servants. But theatrical didn't mean substantive. Fire every civil servant and cut foreign aid to zero and you save about $300 billion. The deficit last year was $1.8 trillion. DOGE claims to have cut spending by $175 billion. But The Wall Street Journal, the New York Times and others found DOGE routinely overstated savings. Federal spending in the current fiscal year is actually up 9% from a year earlier. (Trump sent a slimmed-down budget to Congress last month that seeks to entrench some of DOGE's cuts.) The big money, as everyone except Musk and Trump seem to acknowledge, is in entitlements. Not fraud, waste and abuse, but checks correctly issued to eligible recipients. Such programs, including Social Security, health programs, food stamps and welfare, plus interest on the national debt, equal 73% of spending. Entitlements are infamously difficult to cut. Yet that's what House Republicans propose. Far from being full of 'crazy spending increases," as Musk claims, the bill would reduce spending over the coming decade by $1.3 trillion, relative to current law, and that would be predominantly from entitlements, according to the Congressional Budget Office. So why does the bill add to deficits? Because it reduces revenues even more, by $3.7 trillion, by extending tax cuts enacted in 2017, then adding a bunch more. If Musk is upset about this bill adding to the national debt, it's the tax cuts, not the spending, he should be attacking. Healthcare is the single biggest source of federal spending growth. Since 2000, federal health programs, mainly Medicare, Obamacare, and Medicaid, have grown from 3.1% of gross domestic product to 5.6%. Given the aging of the population and rising medical costs, that is expected to grow. For years, budget hawks have pleaded with Congress to address this. Give Republicans some credit: They have. Past cost-cutting often meant paying providers less, and providers would then change their behavior. It's why so few doctors accept Medicaid. This time, Republicans are going the less popular but potentially more durable route of giving less money to beneficiaries. The Congressional Budget Office estimates policy changes under Trump will mean 16 million fewer people will have health insurance. Is that good or bad? That depends on your politics. Democrats and progressives think it is cruel. Republicans, though, could point out that many of those people entered the U.S. illegally or gained benefits because of discretionary or temporary program changes. For example, nearly a third of that 16 million is because Republicans aren't renewing a temporary expansion of Obamacare subsidies passed by Democrats under Joe Biden, and the Trump administration is tightening up enrollment and eligibility verification. A further half reflects changes to Medicaid eligibility, such as penalizing states that cover certain immigrants, verifying eligibility more often, or ending a loophole through which states and insurers extract more dollars from Washington. Five million people would lose Medicaid because of work requirements on able-bodied adult recipients without dependents. This provision is arguably the harshest: Many of those people can't or won't work because of personal circumstances or age, or can't process the necessary paperwork. There's lots for budget hawks to hate about the Republican bill. It leaves debt on track to hit records. It doesn't touch the big drivers of spending—Social Security and Medicare. It shifts costs, such as for food stamps, to the states. It lards the tax code with breaks that reward Trump's base rather than help economic growth, and sunsets them in 2028 to artificially reduce the cost. It front loads the tax cuts and back loads the spending cuts. Nonetheless, the proposed legislation is superior to anything Musk has done in one crucial respect: It is legislation. The Constitution gives the power of the purse to Congress. DOGE and Trump have largely trampled on that principle, gutting foreign aid, research and countless other programs without authorization or input from the public or their representatives. Republicans in Congress mostly stood by and let this happen. With this bill, they're taking back control of the purse. Perhaps they could make that a habit. Write to Greg Ip at
NDTV
40 minutes ago
- NDTV
"People Have Spoken": Musk After X Poll On New Party Amid Rift With Trump
Tech billionaire Elon Musk has proposed the formation of a new political party in the US amid his ongoing feud with President Donald Trump. Mr Musk conducted a poll on his social media platform X, which showed 80% of the people were in favour of the idea. "The people have spoken. A new political party is needed in America to represent the 80% in the middle! And exactly 80% of people agree. This is fate," he said on X. He later called it "The America Party". The people have spoken. A new political party is needed in America to represent the 80% in the middle! And exactly 80% of people agree ???? This is fate. — Elon Musk (@elonmusk) June 6, 2025 Mr Musk had conducted a poll, asking people if it was time to create a new political party. "Is it time to create a new political party in America that actually represents the 80% in the middle?" he wrote on the micro-blogging site. According to the poll, 80.4% of the people favoured the formation of a new political party in the US. Is it time to create a new political party in America that actually represents the 80% in the middle? — Elon Musk (@elonmusk) June 5, 2025 The poll followed soon after Mr Musk claimed personal credit for Mr Trump's victory in the 2024 presidential election. Once a prominent informal advisor to Mr Trump, the Tesla CEO accused him of ingratitude, saying, "Without me, [Donald] Trump would have lost the election." The 47th President then responded on Truth Social, saying that he believes the government can save billions of dollars by ending the financial support and contracts it provides to Mr Musk's companies, such as Tesla and SpaceX. "The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts," he said. The feud between Mr Trump and Mr Musk arose after the latter publicly criticised the "Big, Beautiful Bill," a massive government spending plan. The bill didn't go well with Mr Musk as it continued to support oil and gas companies but cut back on benefits for clean energy and electric vehicles, which directly affected his companies like Tesla and SpaceX.
