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EXPLAINER-Does escalating spat with Trump pose regulatory threat for Musk businesses?
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EXPLAINER-Does escalating spat with Trump pose regulatory threat for Musk businesses?
Jun 5, 2025 3:52 PM

June 5 (Reuters) - The risk U.S. 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 U.S. 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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