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Elon Musk has long railed against the U.S. government, saying a crushing number of federal investigations and safety programs have stymied Tesla, his electric car company, and its efforts to create fleets of robotaxis and other self-driving automobiles.
Now, Musk’s close relationship with President Donald Trump means many of those federal headaches could vanish within weeks or months.
On the potential chopping block: crash investigations into Tesla’s partially automated vehicles; a Justice Department criminal probe examining whether Musk and Tesla have overstated their cars’ self-driving capabilities; and a government mandate to report crash data on vehicles using technology like Tesla’s Autopilot.
The consequences of such actions could prove dire, say safety advocates who credit the federal investigations and recalls with saving lives.
“Musk wants to run the Department of Transportation,” said Missy Cummings, a former senior safety adviser at the National Highway Traffic Safety Administration. “I’ve lost count of the number of investigations that are underway with Tesla. They will all be gone.”
Within days of Trump taking office, the White House and Musk began waging an unbridled war against the federal government — freezing spending and programs while sacking a host of career employees, including prosecutors and government watchdogs typically shielded from such brazen dismissals without cause.
The actions have sparked outcries from legal scholars who say the Trump administration’s actions are without modern-day precedent and are already upending the balance of power in Washington.
The Trump administration has not yet declared any actions that could benefit Tesla or Musk’s other companies. However, snuffing out federal investigations or jettisoning safety initiatives would be an easier task than their assault on regulators and the bureaucracy.
Investigations into companies like Tesla can be shut down overnight by the new leaders of agencies. And safety programs created through an agency order or initiative — not by laws passed by Congress or adopted through a formal regulatory process — can also be quickly dissolved by new leaders. Unlike many of the dismantling efforts that Trump and Musk have launched in recent weeks, stalling or killing such probes and programs would not be subject to legal challenges.
As such, the temporal and fragile nature of the federal probes and safety programs make them easy targets for those seeking to weaken government oversight and upend long-established norms.
“Trump’s election, and the bromance between Trump and Musk, will essentially lead to the defanging of a regulatory environment that’s been stifling Tesla,” said Daniel Ives, a veteran Wall Street technology and automobile industry analyst.
Musk’s empire
Among Musk’s businesses, the federal government’s power over Tesla to investigate, order recalls, and mandate crash data reporting is perhaps the most wide-ranging. However, the ways the Trump administration could quickly ease up on Tesla also apply in some measure to other companies in Musk’s sprawling business empire.
A host of Musk’s other businesses — such as his aerospace company SpaceX and his social media company X — are subjects of federal investigations.
Musk’s businesses are also intertwined with the federal government, pocketing hundreds of millions of dollars each year in contracts. SpaceX, for example, has secured nearly $20 billion in federal funds since 2008 to ferry astronauts and satellites into space. Tesla, meanwhile, has received $41.9 million from the U.S. government, including payment for vehicles provided to some U.S. embassies.
Musk, Tesla’s billionaire CEO, has found himself in his newly influential position by enthusiastically backing Trump’s third bid for the White House. He was the largest donor to the campaign, plunging more than $270 million of his vast fortune into Trump’s political apparatus, most of it during the final months of the heated presidential race.
Those donations and his efforts during the campaign — including the transformation of his social media platform X into a firehose of pro-Trump commentary — have been rewarded by Trump, who has tapped the entrepreneur to oversee efforts to slash government regulations and spending.
As the head of the Department of Government Efficiency, Musk operates out of an office in the Eisenhower Executive Office Building, where most White House staff work and from where he has launched his assault on the federal government. Musk’s power under DOGE is being challenged in the courts.
Even before Trump took office, there were signs that Musk’s vast influence with the new administration was registering with the public — and paying dividends for Tesla.
Tesla’s stock surged more than 60% by December. Since then, its stock price has dropped, but still remains 40% higher than it was before Trump’s election.
“For Musk,” said Ives, the technology analyst, “betting on Trump is a poker move for the ages.”
Proposed actions will help Tesla
The White House did not respond to questions about how it would handle investigations and government oversight involving Tesla or other Musk companies. A spokesman for the transition team said last month that the White House would ensure that DOGE and “those involved with it are compliant with all legal guidelines and conflicts of interest.”
In the weeks before Trump took office on Jan. 20, the president-elect’s transition team recommended changes that would benefit the billionaire and his car company, including scrapping the federal order requiring carmakers to report crash data involving self-driving and partially automated technology.
The action would be a boon for Tesla, which has reported a vast majority of the crashes that triggered a series of investigations and recalls.
The transition team also recommended shelving a $7,500 consumer tax credit for electric vehicle purchases, something Musk has publicly called for.
“Take away the subsidies. It will only help Tesla,” Musk wrote in a post on X as he campaigned and raised money for Trump in July.
Auto industry experts say the move would have a nominal impact on Tesla — by far the largest electric vehicle maker in the U.S. — but have a potentially devastating impact on its competitors in the EV sector since they are still struggling to secure a foothold in the market.
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