Trump, Musk, and the Future of AI Investment

Tesla stands to benefit significantly from Trump's focus on AI and autonomous technology.

### The Future of AI and Automotive under Trump: A Strategic Alliance with Musk
* 🤖 There is a strong belief that Trump's administration will prioritize **artificial intelligence (AI)**, as the government has **lagged significantly** in this area, which could lead to **major initiatives** through the Department of Defense and other agencies.
* 📈 This focus on AI is expected to benefit major tech companies like Microsoft, Amazon, and Google, marking a **"golden age for AI"** with strong government links.
* 🚗 The discussion around Tesla highlights how Trump's potential repeal of consumer incentives could create a **more level playing field**, favoring Tesla due to its **scale** compared to traditional automakers like GM and Ford.
* 💰 The anticipated fast-tracking of autonomous driving technology under Trump's leadership could unlock **significant value for Tesla**, with estimates suggesting a potential **$1 trillion in incremental valuation**.
* 🔌 While there are concerns about the infrastructure needed to support this growth, particularly in the chip sector, the Inflation Reduction Act is expected to focus more on **domestic chip production and AI development**.
* 📉 Companies like Intel may struggle as they are seen as **losing out on these trends**, with the IRA potentially **exacerbating their challenges**.
* 🤝 Musk's informal influence in the White House is viewed as a **strategic advantage**, marking a **significant alliance** that could **shape the future** of both tech and automotive sectors.
* 🗣 Overall, the sentiment is that while there may be challenges, the current landscape presents a **"Goldilocks scenario"** for tech and a particularly favorable moment for **Tesla investors**.

What gives you such conviction that Trump will focus on AI out of the gate? I mean, I think that that's going to be a huge focus within the government. I mean, government has been way behind when it comes to A.I. That's going to be huge initiatives, I think, through D.O.D., through the agencies. That's going bullish for Microsoft, both for Amazon Bullets, for Goo Goo, Goo Goo names like LB Tier. I think that's other names that are going to benefit here in what is a golden age for A.I. And apparently, there's the link with government. I want to ask you about Elon Musk, and if you'll allow me, let me just put it this way, because the market tried to make sense of the Tesla move. It's believed that Trump will repeal some or all of what's legislated for on the consumer incentive side, manufacturing support for the companies themselves.

There's the association tailwind between Musk and Trump. Why is it that Tesla survives and stands out to your mind? But GM, Ford, Rivian names like that won't do as well. Sure. I think it's a great point. Let's go to two parts. One, by removing the credits to 7500. That's going to give a much more even playing field. I mean, Tesla has a scale and scope. They're going to be hugely advantage there versus the Detroit stalwarts said bullish there in terms of giving them that availability and I think option it still to me they can still cut prices more. But the big thing the reason that this stock I believe it's $1,000,000,000,000 of value unlock when it comes to the IP is because when you look at Trump now this is going to give the highway the autobahn for autonomous. I think he is going to fast track.

autonomous FSD that is very bullish for Tesla. And it comes down to when for Musk, one of the best strategic bets he ever made was ultimately this bet on Trump. Is the technology ready? I think the technology is not maybe not necessarily ready today in its current form, but it's going to a point that this is ultimately going to be. When I look at autonomous and FSD, it's $1,000,000,000,000 incremental valuation. You could cyber cabs, you could automated 2026, 2027 initiatives get fast track Tesla Musk is the big winner in this call it Trump sweepstakes along with big tech because the other view is is that con is likely going to be Audi FTC and that's bullish for deal making across big tech. Okay there's a lot to be bullish about. But one area of concern has been, well, yes, I will be fueled, but what about

the infrastructure for a lot of that comes with growing chip sector here in the United States, and that's dependent on, well, in many ways, the CHIPS Act. Yeah, maybe that gets blown out of the water. Yes. I think when it comes to chips, our Inflation Reduction Act clearly is going to be like revisions there. The probably the biggest loser negative would be names like Intel. You're just adding to that pain. But from a chip perspective, you think Intel will be a loser, that. Well, I think Intel's been a loser. This is just putting really adding gasoline to the fire in terms of IRA was really going to be a huge opportunity for Intel. I think Intel now is on the wrong side of that trend. I think what you're going to see with IRA and feature reduction, much more focus on chips in the US, but really much more focused on the AI build-out. And I think when it comes to some of the

tariffs that we talk about with China. I think there will be carve-outs. That's why I don't think that Invitae is going to be so negatively impacted. I don't think a lot of these are other names in terms of the tariffs, the Tesla, Apple. That's also why it's so important that Musk is going to be a whisper in the White House. Let you put your feedback on because I know Ed wants to jump in here, but I'm interested in basically you think Trump isn't going to live up to a lot of the things he promised on the campaign. I think Barr's going to be a lot worse than the bite when it comes to some of the tariffs. You have some that will be much more nastier. But when it comes to some of the exports that we see, I think it's you're going to see carve-outs here. I don't think it's going to be as

negative for tech and supply chain. That's why right now this is a Goldilocks scenario for tech, but it's a champagne moment for Tesla investors. Dan, you can hear me well. Can you hear him? Give you a second. Okay. All right, here's the question. Be honest with me. Can Elon Musk have an informal or formal role in the administration and be the CEO of Tesla, SpaceX, associated with Neuralink, Boring Company, etc.? Yes. I think he won't have a formal role from a cabinet perspective. Why not? Because then it complicates in terms of his ownership and I think some of the structure in terms of what we see with Tesla, with SpaceX. But I believe he'll be an unofficial whisperer. I think he will have a significant influence within the White House. And that's why this is going to be known as probably the best strategic bet that Musk ever made in terms of betting on Trump.

And I think this is something that is just starting to play out in terms of this Trump-Musk sort of alliance.

Musk Will Have Significant White House Influence: Ives

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Bloomberg Technology

Trump's administration is expected to prioritize AI initiatives, benefiting companies like Microsoft, Amazon, and Google.

The repeal of consumer incentives and manufacturing support is believed to give Tesla a competitive advantage over traditional automakers like GM and Ford.

Trump's focus on fast-tracking autonomous driving could unlock significant value for Tesla's intellectual property.

Bullish Outlook for Tesla's Autonomous FSD

Tesla's bet on autonomous driving and FSD is seen as a potential $1 trillion incremental valuation.

While the technology may not be ready today, it is expected to progress rapidly, with initiatives like cyber cabs and automation by 2026-2027.

The growing chip sector in the US, influenced by the CHIPS Act and Inflation Reduction Act, is crucial for infrastructure, but Intel is likely to be a major loser in this shift.

Elon Musk's Influence on Tariffs and Tech

Elon Musk's presence in the White House is expected to mitigate the negative impact of tariffs on companies like Invitae, Tesla, and Apple.

There are anticipated carve-outs in the tariffs, making the situation more favorable for the tech industry and supply chain.

Musk is likely to have an unofficial role in the administration, exerting significant influence while managing his various companies.

The alliance between Trump and Musk is just beginning to take shape.

This partnership is expected to have significant implications.

The dynamics of their relationship are still unfolding.