Can Musk survive the Trump fallout? US agencies eye his companies closely

UPDATED: Jun 6, 2025 04:42 IST

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?

From 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 Microscope

Musk’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 Scrutiny

At its Texas launch site, SpaceX faces pressure from the Environmental Protection Agency over wastewater discharges and broader environmental reviews under the Environmental Policy Act. Wildlife impacts are also under federal scrutiny.

NHTSA: Tesla’s Robotaxi Plans in the Crosshairs

The 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 Fines

The 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 Deal

The 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 Concerns

The 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)

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