Business
What to know about Elon Musk's contracts with the federal government
Elon Musk is easily the world’s wealthiest man, with a net worth topping $300 billion.
But even he stands to make more money from his association with the federal government after placing a winning bet on Donald Trump’s election to the presidency.
“It’s going to be a golden era for Musk with Trump in the White House,” Wedbush Securities analyst Dan Ives said.
Musk’s aerospace company SpaceX has received billions of dollars in federal contracts, and could be line for more, while his five other businesses could gain from a lighter regulatory touch.
Trump has named Musk to co-head a new Department of Government Efficiency,” or DOGE — a nod to the cryptocurrency Musk adores. However, federal law bars executive branch employees, which can include unpaid consultants from participating in government matters that will affect their financial interests, unless they divest of their interests or recuse themselves.
Trump’s transition team has sought a work-around, saying he would “provide advice and guidance from outside of Government” with the work concluding by July 2026, according to a news release.
Richard Painter, a University of Minnesota Law School professor and former chief White House ethics lawyer, said that if Musk is truly working outside the government he doesn’t have to sell his assets, but that limits his influence.
“He can make recommendations, but ultimately the decisions are made by government officials,” Painter said.
Trump’s campaign and Musk’s companies didn’t respond to requests for comment.
Here’s how Musk could benefit from Trump’s presidency:
SpaceX
If there’s one Musk business that could profit the most from the incoming Trump administration, it’s SpaceX.
The company, which announced this year it was moving its headquarters from Hawthorne to Texas, already has received at least $21 billion in federal funds since its 2002 founding, according to government contracting research firm The Pulse. That includes contracts for launching military satellites, servicing the International Space Station and building a lunar lander.
However, that figure could be dwarfed by a federal initiative to fund a Mars mission, which is the stated goal of SpaceX.
A SpaceX Falcon 9 rocket with the Crew Dragon space capsule lifts off from Kennedy Space Center in Cape Canaveral, Fla., on Friday.
(Associated Press)
“Elon Musk is wealthy, but he’s not wealthy enough to completely fund humans to Mars. It needs to be a public, private partnership, because of the tens of billions of dollars that this would cost, or even hundreds of billions dollars,” said Laura Forczyk, executive director of space industry consulting firm Astralytical.
SpaceX has already made big strides testing his Starship rocket, the most powerful ever built. NASA envisions employing the rocket in its Artemis program to return humans to the moon, but it has been designed to have enough thrust to propel a spacecraft to Mars. What’s more, Trump, during his first presidency, speculated on Twitter about why the United States was focusing on the moon instead of Mars.
Still, there are technical challenges, with SpaceX yet to complete the $4-billion Starship lunar lander, which would have to be modified for Mars. And without a pressing geopolitical threat, Congress may be unwilling to spend more on space exploration, as it did during the 1960s with the Apollo program, Forczyk said.
Should a Mars project not materialize, SpaceX could still reap rewards in the next four years. For example, the Federal Communications Commission denied SpaceX nearly $900 million in federal subsidies to provide rural broadband access through its Starlink satellite network. Under new FCC leadership, Forczyk sees that being reversed.
SpaceX also has Starlink contracts with the military, including a $70-million award from the U.S. Space Force last year, according to Space News.
Tesla
Trump’s policies could reduce the sales of electric vehicles, but with Musk’s influence, his administration’s policies could boost Tesla — though not with federal funding.
For example, Trump, who tempered criticism of electric vehicles after Musk backed him, might end a $7,500 tax credit for electric vehicles. That would hurt Tesla’s unprofitable rivals that rely more on the tax credits to lure customers.
“Tesla is the only automaker that has the scale and scope to price vehicles in a $30,000-to-$40,000 range and make significant profits,” Ives said. “It would essentially take competition out of the market.”
Trump’s Republican administration also is considering imposing tariffs on Mexico and China, which could make cars more expensive. Ives said he expects Trump to make exceptions for Tesla and Apple so they’re not hit by a tax on imported goods.
Tesla receives only a smattering of federal contracts, according to USAspending.gov, a database that tracks U.S. government spending.
A Tesla store at Cherry Creek Mall in Denver on Feb. 9, 2019.
(David Zalubowski / Associated Press)
This year, Tesla received at least $2.8 million from the Pennsylvania Department of Transportation through a federally funded program to deploy EV charging stations.
From 2022 to 2024, Tesla and its subsidiaries were awarded at least $631,800 in federal contracts mainly to provide vehicles for the U.S. embassies in Singapore, Iceland and Thailand, the data showed.
The pioneering electric vehicle maker, which saw its stock surge after Trump’s win, has clashed with regulators over safety concerns around its self-driving software. Musk, who has vowed to cut at least $2 trillion in federal spending, could pressure regulators looking into his companies.
xAI
Musk’s startup xAI doesn’t appear to have federal government contracts, but artificial intelligence companies could benefit in other ways under Trump.
Republicans and Musk have expressed support for cutting regulation to fuel AI innovation, a crucial part of the future of tech companies.
But Musk has also warned that AI could pose a threat to humanity, and it’s unclear how Trump plans to address potential safety risks that come with technology including fraud, bias and disinformation.
Trump plans to repeal President Biden’s AI executive order that partly aimed to address AI safety concerns by directing the federal government to take steps such as enforcing consumer protection laws, according to the GOP’s MAGA platform.
Americans for Responsible Innovation, an advocacy group, wants Musk to become a strategic AI advisor to Trump, saying, “As artificial intelligence races ahead, the U.S. should lead the world in advancing AI safely and securely.”
A newly constructed X sign on the roof of the headquarters of the social media platform previously known as Twitter is seen in San Francisco after Musk replaced the logo in July 2023.
( Josh Edelson / AFP via Getty Images)
X
X, formerly known as Twitter, served as an online megaphone for Musk, who constantly shared his support for Trump during the election season.
The social media site, which recently relocated its San Francisco headquarters to Texas, doesn’t appear to have any federal government contracts, but X could benefit from policy changes that affect its rivals such as Meta and TikTok.
Musk, who has declared himself a “free speech absolutist,” recently shared an old Trump video with the words “YES!” In the video from 2022, Trump says he would change Section 230, a law that shields platforms from liability for user-generated content.
Platforms would qualify for immunity only if the companies “meet high standards of neutrality, transparency, fairness and nondiscrimination,” Trump said.
The Boring Co.
Fed up with Los Angeles traffic, Elon Musk launched The Boring Co. with two tweets in 2016, promising “to build a tunnel boring machine and just start digging.”
The Bastrop, Texas, company, formerly headquartered in Hawthorne, has completed a 1.7-mile loop under the Las Vegas Convention Center and is building a larger citywide loop — both without federal funding. Projects in some other cities didn’t get past the proposal stages.
However, at Trump’s urging, congressional representatives could earmark local transportation projects to the benefit of Boring Co., though the company would still have to compete to win them, said Greg Griffin, a former urban planning professor at the University of Texas at San Antonio, who studied that city’s proposed Boring Co. project.
“There could be some alignment between the specific firm’s abilities and a [congressional] delegation that could support projects that match those abilities,” he said. “The concept they were offering was not without merit.”
Local projects are typically paid for with 20% local funding and 80% federal money.
Neuralink
Controlling robotic limbs. Seeing without eyes. Those are the kinds of miraculous advances Musk’s Neuralink startup has been trying to achieve.
The Fremont, Calif., company he co-founded in 2016 doesn’t receive federal money, but its technology and clinical trails are regulated by the Food and Drug Administration. The more hands-off approach favored by Trump could aid such medical device developers.
“We’re concerned that regulation in general in the FDA will be weakened under the second Trump administration, and particularly concerned about medical devices,” said Dr. Robert Steinbrook, health research group director for the consumer rights group Public Citizen.
Neuralink, which has raised more than $600 million in venture capital, has developed an implant the size of a coin with tiny wires that record brain activity. A paralyzed Arizona man became the first human to receive the implant in January and has since moved a cursor, browsed the internet and played video games with this thoughts. A second patient was implanted with the device in July.
Although the company is currently targeting people with disabilities, Musk has said the implants could be wedded with artificial intelligence to greatly magnify the intelligence of all humans — presenting its own set of thorny scientific and ethical issues.
Business
Walmart’s EV chargers are coming to California with discounts for members
Walmart is rapidly expanding its network of electric vehicle chargers designed for customers to use while they shop.
The network could help fill gaps in EV infrastructure in states with greater need for chargers. Walmart, which has more than 5,000 locations in the U.S. and hundreds in California, says more than 90% of Americans live within 10 miles of one of its stores.
The chargers also offer an incentive for customers to choose Walmart — Walmart Plus members will receive a 10% discount off an average price of $0.46 per kilowatt-hour of energy at the company’s chargers.
Walmart chargers are already available at more than 75 locations in 17 states, with Texas boasting the most charging stations, followed by Florida and Arizona.
Matthew Nelson, Walmart’s director of energy policy, said last week on LinkedIn that the network will soon reach 29 states, including California.
“We are delivering on the promise of affordable, reliable and convenient charging,” Nelson said in his post.
According to Walmart’s website, six charging stations are coming to California soon, though the company did not offer a specific timeline.
The chargers will be installed at stores in Antelope, Brea, Fresno, Stockton, Suisun City and Vallejo.
Most charging sites in California will include eight to 16 fast-charging stalls, said Walmart spokesperson Kelsey Bohl.
The company first announced plans in April 2023 to install its own EV chargers at Walmart and Sam’s Club stores, with a goal of installing thousands of chargers by 2030. Partnering with ABB E-Mobility and Alpitronic, it added 25 new charging sites this past May and six more in June.
“Walmart is building a leading retail-integrated EV fast-charging network, focused on delivering an affordable, reliable and convenient charging experience where customers already shop,” Bohl said in an emailed statement. “Customers can charge while they shop, access stations through the Walmart app they already use, and benefit from affordable pricing.”
The charging stations already available include 612 individual charging stalls using 400-kilowatt chargers. Each stall has a dual charging cord with both Combined Charging System and North American Charging Standard connectors. The standard connectors, designed by Tesla, are smaller and lighter than the combined systems.
The primary way to pay for the chargers is through the Walmart app, but the company is also experimenting with built-in credit card readers to allow those without the app to use the stations.
Customers can check charger availability on the Walmart app. The company said the chargers will be available 24 hours a day.
Business
Waymo reports teen riders for bad behavior and delivers them to the police
Robotaxis could be turning into robocops.
A self-driving Waymo reported two teens to San Mateo, Calif., police on Monday after they were found drinking alcohol and shooting toy guns in the back of the vehicle.
According to a social media post from the San Mateo Police Department, officers detained two 15-year-olds after the Waymo they were riding in contacted the department and stopped in a parking lot until law enforcement arrived.
“Parents do you know where your teens are?” the San Mateo Police Department wrote on Facebook following the incident. “Waymo does!”
Officers removed both teens from the vehicle and determined they were using toy guns to shoot Orbeez out the windows. Orbeez are small, water-absorbing beads sold at toy stores.
“Toy guns, water guns, and BB guns all pose real dangers, especially to an untrained eye,” the Police Department said. “The simple handling of them can cause fear in [passersby].” “
A video posted on Facebook shows at least five officers and a police dog responding to the scene and approaching the Waymo with their weapons raised.
Waymo did not immediately respond to a request for comment.
Waymo vehicles have internal cameras and microphones that may be used in an emergency or to “promote safety and security,” according to Waymo’s online support page.
The cameras are also used to ensure the vehicles are clean and to help find lost items, according to the support page.
The company said it does not use facial recognition or other biometric identification technologies to identify individuals.
“In more urgent circumstances, support may access live video during a trip,” the Waymo page said.
The San Mateo Police Department’s Facebook post has garnered nearly 60 comments, with one user accusing Waymo of “snitching.”
“At least they got a designated driver?!” one user commented.
Business
Commentary: How right-wing anti-transgender attacks led to a Supreme Court ruling upholding sex discrimination
At the Supreme Court, the unfounded fear of boys masquerading as girls in youth sports rolled the clock back on gender equality.
On the surface, the Supreme Court’s June 30 opinion upholding state laws barring transgender girls from women’s and girl’s sports teams looks like a victory for women’s rights.
The 6-3 opinion by Justice Brett M. Kavanaugh certainly presents itself that way. “Females and males have inherent physical differences relevant to athletic performance,” Kavanaugh wrote. “Therefore, in contact sports, forcing female athletes to compete against males can create significant safety risks.” He also asserted that “forcing female athletes to compete against males can undermine competitive fairness.”
The ruling applied to prohibitions enacted in Idaho and West Virginia against “biological” males’ participation on women’s teams in public schools. Federal judges in both states overturned the bans. The Supreme Court majority restored them. The ruling essentially upholds similar bans enacted in 25 other states.
There was no record of any transgender person participating in school sports in the State, let alone any ‘problem’ with transgender students … creating unfair competition or unsafe conditions.
— Justice Sonia Sotomayor, demolishing the Supreme Court’s argument in favor of banning transgender girls from girl’s sports
Kavanaugh, like Donald Trump and others in the anti-transgender camp, maintained that one’s gender is an immutable fact of life, established even before birth.
Anything else, Trump stated in an executive order he issued on inauguration day 2025, could only be the product of “gender ideology extremism.” The U.S., his order stated, recognizes “two sexes, male and female. These sexes are not changeable and are grounded in fundamental and incontrovertible reality.” That’s a “biological truth,” he declared.
In his own version of this overconfident and factually insupportable conclusion, Kavanaugh wrote: “As all agree, females and males have inherent physical differences relevant to athletic performance.”
Science recognizes that some people are “born with sex traits that don’t fit into typical male or female patterns,” to cite a discussion on the Cleveland Clinic web page on the topic “intersex.” The condition “may involve chromosomes, hormones, reproductive organs or genitals.”
From a psychological standpoint, medical science recognizes “gender dysphoria” as a real condition often requiring counseling and medical intervention such as the use of puberty blockers and hormones to stave off the development of secondary sex characteristics until the condition can be resolved.
No one disputes that there are physical differences between the sexes. Few would dispute that on average or even at the median, males may be bigger and more powerful than females, or that in certain contact sports the difference may be telling and on occasion dangerous.
But that’s not the same as asserting that the physical differences between males and females invariably mean that men will invariably prevail over women in all competitions or that their participation will endanger women.
The International Olympic Committee — in a policy statement Kavanaugh cited incompletely — says that in “most running and swimming events,” males have a 10% to 12% advantage over women. That’s a range that would accommodate the full spectrum of outcomes — transgender females win, cisfemales win, they tie. (The “cis” prefix denotes those living consistent with their birth gender.)
West Virginia and Idaho addressed this ambiguity by banning transgender women from all girls’ teams. So under their rules transgender girls can’t play football or soccer with cisgirls. But what’s the argument in favor of banning them from the 100-yard dash, or cross-country track, or diving, or archery?
But something else is going on here. The Supreme Court’s ruling was almost preordained, given the years-long campaign by conservatives to demonize transgender individuals as if they’re members of an alien species.
It will be recalled that during his presidential campaign, Trump spun a despicable fantasy in which children were kidnapped in school and secretly subjected to sex-change operations.
Trump’s executive order wiped out policies aimed at protecting transgender adults from discrimination. He moved to outlaw gender-affirming medical therapies for anyone under 19 by cutting off federal funding for healthcare institutions that provide such care.
He banned transgender individuals from serving in the military and ordered federal prison officials to move transgender inmates into the general populations consistent with their birth genders, which exposes them to physical assault. (Federal Judge Royce Lamberth of Washington, D.C., has blocked the government from transferring three transgender women into the male prison population or terminating their hormone treatments.)
I wrote during Trump’s first term, when his anti-transgender policies were still gestating, that the goal was to show that “one can target any community, as long as it doesn’t have a strong political voice or political power. These are the actions of bullies and cowards, pretending to be strong.”
Last year, the Supreme Court struck its first blow against transgender rights by upholding a Tennessee law banning transgender care, including puberty blockers and hormone therapy, for minors. Similar laws have been enacted in 25 other states. The majority in that ruling by Chief Justice John G. Roberts Jr. was identical to the one in the June 30 ruling — Roberts, Kavanaugh, and Justices Clarence Thomas, Samuel A. Alito Jr., Neil M. Gorsuch and Amy Coney Barrett.
Who are the targets of this ideological campaign? They number only about 1.6 million U.S. adults, or one-half of 1% of the U.S. population. About 300,000 adolescents ages 13 to 17, or 1.4%, identify as transgender, according to a study by UCLA School of Law.
In West Virginia, as Justice Sonia Sotomayor observed in her dissenting opinion, “there was no record of any transgender person participating in school sports in the State, let along any ‘problem’ with transgender students … creating unfair competition or unsafe conditions.”
In endorsing the flat bans directed at transgender women in Idaho and West Virginia, Kavanaugh argued that any attempt to implement case-by-case judgments of students’ requests to join sports teams inconsistent with their biological gender would create “an enormous practical and administrability problem.”
Is that so? That wasn’t the case in Maine, where the annual K-12 population is more than 170,000. There, a committee was charged with determining whether a student’s participation in a sport consistent with their gender identity but inconsistent with their biological sex would “result in an unfair athletic advantage” or present a risk of injury to others. The committee held 56 hearings from 2013 through 2021, or an average of seven per year. During the entire time span, only four involved transgender girls. (The outcome of those hearings couldn’t be learned.)
It was Maine’s policy, one might recall, that provoked a confrontation between Trump and Maine Gov. Janet Mills at the White House last year, when Trump threatened to withhold federal funding from the state unless it barred transgender students from competing on women’s sports teams. “We’ll see you in court,” Mills snapped.
Whether the Idaho and West Virginia laws genuinely protect girls from unfair competition is questionable. (The Idaho law is styled the “Fairness in Women’s Sports Act.”) In practice, the laws may subject women in public schools to “invasive sex verification procedures,” as educational expert George Theoharis of Syracuse University wrote after the court ruling.
They’re also based on a retrograde view of women as fragile creatures needing men’s protection, Theoharis wrote — “the same logic that has historically been used to justify excluding women from making their own healthcare decisions and girls from rigorous math and science; that physically demanding work is simply beyond them.” (There don’t appear to be any state laws barring transgender women from competing in men’s sports.)
Becky Pepper-Jackson, the plaintiff in the West Virginia case, in which she is identified only as B.P.J., is the only transgender girl who sought to join girl’s teams — track and cross-country — in the state. That was in 2021, just after West Virginia passed its law and she was about to enter sixth grade. She didn’t appear to pose any competitive risk to others on the track and cross-country teams she applied to join — her lawyers told the Supreme Court that on those no-cut teams, she “came in near the back.”
Anyway, she had not gone through male puberty, which theoretically might have endowed her with a competitive advantage, because she had been taking puberty blockers and female hormones.
Thanks to the court’s ruling, Sotomayor observed in a dissent joined by Justices Elena Kagan and Ketanji Brown Jackson, West Virginia can deny Becky access to school sports “because it thinks they have an inherent athletic advantage, even if the facts show that they do not.”
B.P.J., Sotomayor wrote, “cannot practice on girls’ teams, even if she would not take anyone’s spot in an eventual competition, even if everyone who tries out for the team makes it, and even if having the chance to participate could aid immensely in treating B. P. J.’s gender dysphoria.”
So whose interest was really protected by the Supreme Court?
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