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Does Escalating Spat With Trump Pose Regulatory Threat For Musk Businesses?

Does Escalating Spat With Trump Pose Regulatory Threat For Musk Businesses?

NDTV14 hours ago

The risk US transportation, environmental, communications and other regulators will take aim at Elon Musk's many businesses became a real threat after the billionaire's deep political ties with President Donald Trump disintegrated on Thursday.
Below is a list of US regulators who oversee Musk's companies, including automaker Tesla, rocket and satellite company SpaceX, brain implant company Neuralink, social media platform X and construction firm The Boring Company.
Federal Communications Commission
The Federal Communications Commission in April voted to open a review of the decades-old spectrum sharing regime between satellite systems sought by SpaceX. SpaceX wants access to new spectrum from the FCC in the coming years to speed deployment of satellite-based internet service.
The review by the U.S. telecom regulator aims to allow a greater and more intensive use of spectrum for space activities. Existing reductions approved in the 1990s limit power usage that prevent better coverage from SpaceX's Starlink and other systems.
Food And Drug Administration
The FDA oversees the clinical trials for Neuralink, Musk's brain implant company, deciding whether such trials can take place and whether Neuralink can eventually sell its device to consumers. The agency already approved such trials in the U.S. Neuralink has also been pursuing clinical trials outside the U.S, including in Canada.
The FDA had initially rejected Neuralink's request to start clinical trials, citing safety risks, Reuters reported in 2023. The agency has since given the startup approval to do clinical trials, which are ongoing.
Environmental Protection Agency
SpaceX faces environmental regulations from the EPA, which oversees the company's wastewater discharges at its operating site in Texas.
The company's operations are also subject to environmental reviews under the National Environmental Policy Act, with several agencies including the Fish and Wildlife Service required to analyze the impact of the company's rocket launches and landings on land, water and wildlife.
National Highway Traffic Safety Administration
Tesla faces ongoing oversight from U.S. auto safety investigators about the safety of its vehicles especially when using advanced driver assistance systems. Last month, the National Highway Traffic Safety Administration asked Tesla to answer questions on its plans to launch a paid robotaxi service in Austin, Texas, in June, in order to assess how the electric vehicle maker's cars with full self-driving technology will perform in poor weather.
NHTSA has been investigating Tesla's full self-driving collisions in reduced roadway visibility conditions since October. The agency said it is seeking additional information about Tesla's development of robotaxis "to assess the ability of Tesla's system to react appropriately to reduced roadway visibility conditions" as well details on robotaxi deployment plans and the technology being used.
Federal Aviation Administration
In September, the FAA proposed a $633,000 fine against SpaceX for failing to follow license requirements in 2023 before two launches. That investigation remains open. The FAA could also impose new restrictions or additional scrutiny after a series of explosions of SpaceX launches.
Securities And Exchange Commission
Musk is embroiled in litigation with the SEC over his 2022 takeover of Twitter, with Musk now due to respond to those allegations next month.
The regulator also had opened an investigation into his company Neuralink according to a December letter from Musk's lawyer he posted on social media platform X.
Federal Trade Commission
The FTC is a consumer protection agency that ensures social media companies like Musk's platform X protect children's privacy and safeguard Americans' data.
The FTC, which also enforces antitrust law, recently opened a probe into coordination between media watchdog groups, some of whom Musk has accused of orchestrating an illegal group advertiser boycott against his social media site.

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Donald Trump has many ways to hurt Elon Musk
Donald Trump has many ways to hurt Elon Musk

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Donald Trump has many ways to hurt Elon Musk

THERE WAS a time, not long ago, when an important skill for journalists was translating the code in which powerful people spoke about each other. Carefully prepared speeches and other public remarks would be dissected for hints about the arguments happening in private. Among Donald Trump's many achievements is upending this system. In his administration people seem to say exactly what they think at any given moment. Wild threats are made—to end habeas corpus; to take Greenland by force—without any follow-through. Journalists must now try to guess what is real and what is for show. So it is with the break-up between Mr Trump and Elon Musk, the world's richest man and until last week a 'special government employee". A few months ago Mr Musk posted on X, his social-media platform, that he loved the president 'as much as a straight man can love another man". On May 30th, at a joint press conference in the Oval Office to announce Mr Musk's departure from government, Mr Trump called him 'an incredible patriot" and praised his work with the Department of Government Efficiency (known as DOGE). Yet by June 5th it had all broken down. On his Truth Social media platform the president posted that the billionaire was 'wearing thin" and 'went CRAZY". Mr Trump then threatened to 'terminate" his government contracts. Mr Musk responded on X, claiming that Mr Trump's name appears in the government's files on Jeffrey Epstein, the late financier who was convicted of trafficking and having sex with underage girls. 'That is the real reason they have not been made public," wrote Mr Musk. Later he agreed with a post saying that Mr Trump should be impeached. He also said he would begin decommissioning his Dragon spacecraft, which transports astronauts to the International Space Station. If carried out, the threats could be disastrous for both men. Mr Trump could lose a valuable donor and the supportive sway of X; Mr Musk's business interests could suffer enormously. But in response to a comment advising him to 'cool off", Mr Musk wrote 'good advice" and backtracked on his call to decommission the Dragon. Where things go from here is anyone's guess. The initial cause of the falling out between Mr Trump and his 'first buddy" was the president's so-called 'One Big Beautiful Bill". Mr Musk was incensed that the measure would add enormously to the deficit, and so undermine the work of DOGE. On June 3rd he escalated his criticism, calling the bill a 'disgusting abomination". On June 5th he added another complaint, saying that Mr Trump's tariffs are going to bring about a recession. Mr Trump has his own explanation for Mr Musk's sudden disloyalty. He says the Tesla CEO is unhappy because his bill would cancel a government subsidy for electric cars created by Joe Biden. If Mr Trump does decide to retaliate, the risks to Mr Musk and his businesses are extensive. The threats the president has already made, however, are the least credible. Cancelling the contracts of SpaceX, Mr Musk's space company, would be profoundly disruptive to the government. Without SpaceX rockets, it would struggle to put anything into space, including spy satellites. The Pentagon relies heavily on the firm's Starlink satellites. SpaceX itself could probably weather such moves. Though it has benefited greatly from government contracts, the firm's commercial revenues soared nearly three-fold last year, according to estimates by Quilty Space, a business-intelligence firm. Mr Musk has also wanted to cancel the Dragon spacecraft for some time. Steve Bannon, a former adviser to Mr Trump who is no fan of Mr Musk, has proposed even bigger penalties. He wants the South African-born billionaire to be stripped of his American citizenship—he says Mr Musk is an 'illegal alien"—and his companies nationalised under the Defence Production Act. Such actions also seem unrealistic. Stripping Mr Musk's citizenship would require a judge to rule he committed fraud. The Defence Production Act almost certainly does not permit sudden nationalisation, even if the country is at war. That does not mean Mr Musk can breathe easy, though. His interests are vulnerable to more routine measures. At the time he entered government in January, he and his companies were subject to 65 potential or actual regulatory actions by 11 federal agencies, according to the minority staff of the Permanent Subcommittee on Investigations, an arm of the Senate. These include accusations that Tesla, Mr Musk's car company, lied about its self-driving technology; that Neuralink, his brain-implant company, violated the Animal Welfare Act with its experiments on monkeys; and that SpaceX repeatedly failed to follow the law when launching rockets. (As head of DOGE, Mr Musk was able to dismantle some of the agencies within the government investigating him, such as the Consumer Finance Protection Bureau.) One of the reasons why Silicon Valley magnates like Mr Musk rallied around Mr Trump last year was that he promised a more favourable regulatory environment. But 'there was always the risk that what they were buying instead were the conditions of oligarchy", says Donald Moynihan of the Gerald Ford School of Public Policy at the University of Michigan. That is, business leaders who are loyal to the president get to operate as they like, while those who are critical get the full force of the law. Mr Musk may be about to discover what life is like outside the tent. Perhaps on feeling the cold he will find a way back inside. © 2025, The Economist Newspaper Limited. All rights reserved. From The Economist, published under licence. The original content can be found on

Vivek Ramaswamy's Photo Met With Racial Remarks Again. This Time Netizens Shut Trolls
Vivek Ramaswamy's Photo Met With Racial Remarks Again. This Time Netizens Shut Trolls

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Vivek Ramaswamy's Photo Met With Racial Remarks Again. This Time Netizens Shut Trolls

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Trump vs Musk: Caught in the middle are two top US govt advisors, married to each other. What next?
Trump vs Musk: Caught in the middle are two top US govt advisors, married to each other. What next?

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As the feud between US President Donald Trump and his former top advisor, also the world's richest man, Elon Musk ensues, a Trump loyalist couple faces a conundrum like no other. Stephen Miller and his wife Katie Miller are now on the opposite sides of the Donald Trump-Elon Musk break up. How? Because one is the White House deputy chief of staff for policy and the other had until recently been serving as an advisor and a spokeswoman for Musk's Department of Government Efficiency. According to a New York Times report, last week, as Musk was leaving Washington behind, there were news reports that Katie was also leaving DOGE to work for Musk full time, a development that led to speculation about her relationship with the administration – and her husband. By Thursday, speculations intensified after Donald Trump and Elon Musk engaged in an ugly spat with Musk suggesting the president was ungrateful for the $250 million he spent on getting him elected and Trump saying he could cancel the tech billionaire's many government contracts. Musk then reportedly stopped following Stephen Miller, and several other conservative leaders, on X, the social media platform he owns. A day later, Trump said that Musk had "lost his mind" but insisted he wanted to move on from the fiery split with his billionaire former ally. Trump had scrapped the idea of a call with Musk and was even thinking of ditching the red Tesla he bought at the height of their bromance, White House officials told AFP. "You mean the man who has lost his mind?" Trump said in a call with ABC when asked about Musk, adding that he was "not particularly" interested in talking to the tycoon. Trump later told Fox News that Musk had "lost it." Just a week ago Trump gave Musk a glowing send-off as he left his cost-cutting role at the DOGE after four months working there. Attempts to reach the Millers for comment were unsuccessful, the NYT report added. 'Let's take the richest guy in the world and put him in a room with the most powerful person in the world: Did anybody ever think this was ever going work out?' said James Carville, the veteran Democratic strategist. 'You couldn't be a casual observer of human nature and be remotely surprised by this," the NYT quoted him as saying. Carville was also caught in the middle, just like the Millers are. Back in the 1900s, while working as the chief strategist in the Clinton White House, he made headlines for his relationship with his wife, Mary Matalin, a Republican political consultant who helped manage the 1992 Bush campaign. The couple survived the Clinton administration, and remains married today, the report added. According to the report, Trump has caused a deeper rift between another married couple: Kellyanne Conway, a former campaign manager for the president, and her now ex-husband, George Conway, a conservative lawyer, who announced their divorce in 2023, after years of differing opinions on the president. (She approved, he decidedly did not.) (With inputs from agencies)

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