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Elon Musk touts his influence under the Trump administration in a ‘department of government efficiency’

Elon Musk already has a clear plan for the first political favor he will seek if Donald Trump wins next month’s election.

Tesla’s CEO plans to roll out an advanced version of its Full Self-Driving (FSD) software next year, allowing cars to operate without driver supervision.

Originally set for California and Texas, Musk acknowledged Wednesday that the timeline depends on state regulations — an area over which he currently has no influence.

“If there is a department responsible for government efficiency, I will try to contribute to that,” Musk said during Tesla’s third-quarter earnings conference call, adding that it would benefit all industries, not just Tesla.

Musk, like many tech billionaires, frequently clashes with regulators, whom he sees as obstacles to innovation.

What is DOGE?

If Trump is elected, the Tesla CEO will volunteer to create some form of trash collection service to eliminate old rules and regulations.

Musk has suggested eliminating about three-quarters of federal agencies in order to streamline their operations.

As head of a proposed new department under Trump, dubbed DOGE, Musk would advocate for a national approval process for autonomous vehicles, replacing the current patchwork of state regulations.

This process, Musk envisions, would involve minimal paperwork, making the path to approval smoother.

Rival Waymo, for example, spent years sharing safety data with California regulators before gaining approval for its robotaxi service.

Tesla, on the other hand, has avoided this by classifying its Full Self-Driving (FSD) software as a driver assistance feature rather than a fully autonomous system.

Musk, a staunch Trump supporter, has previously hinted that he would direct regulatory questions to Trump, paving the way for legislation that could benefit his companies.

Finally: growing profitability in its automotive business (for now)

Tesla shocked investors on Wednesday with a strong third-quarter earnings statement that saw improvements almost across the board, bucking a particularly disappointing vehicle delivery figure released in early October.

The results showed a sequential improvement in Tesla’s key profitability metric: automotive gross margins excluding regulatory credits.

That figure rose from 14.6% in the second quarter to 17.1%, thanks to a dramatic reduction in costs, potentially due to increased production of its Cybertruck, which the company says is now generating for the first time times gross profit per unit.

“It’s been three years since we’ve seen this kind of quarter-over-quarter improvement,” said Gene Munster, managing partner at Deepwater Asset Management.

Finance chief Vaibhav Taneja, however, warned that maintaining this level of profitability would be “difficult” in the current quarter.

Record Q4 and up to 30% growth in 2025

Tesla shares jumped 15% in early trading Thursday.

The company’s bullish outlook was just as important as the third-quarter margin expansion to the market’s bullish reaction.

Tesla forecasts “slight growth” in vehicle deliveries above 1.8 million starting in 2023, a target many doubted given that Tesla’s sales in the first nine months are declining.

This implies a strong end to the year with a minimum of 515,000 cars handed over to customers in the last three months, an increase from the previous all-time high of 485,000 compared to the fourth quarter of 2023.

Additionally, Musk predicted that sales would increase by 20 or even 30 percent next year, which would imply a volume of around 2.3 million vehicles.

This would be partly due to the addition of a new product to the range in the first half of next year, cars that until now have never been seen.

No more than $25,000 for “Model 2”

However, there is a problem.

Musk seemed to suggest that the only all-new model would be the two-seat CyberCab, first revealed earlier this month and scheduled for volume production by 2026.

To reduce the manufacturing cost to around $25,000 a piece, the CyberCab would not be available with a steering wheel and pedals as many Tesla fans had hoped.

This would mean there would be no low-cost “Model 2” in the traditional sense, which many analysts had predicted up until now.

That would leave only a cheaper version of the Model 3/Y family as the new entry-level version coming next year to generate up to 30% growth in car sales, which Musk has done. allusion.

“Having a regular $25,000 model is useless,” Musk replied Wednesday. “It would be stupid, it would be completely contradictory to what we believe.”

The problem is that virtually no market in the world has even approved such a vehicle for large-scale use in ride-hailing fleets, let alone for sale to the average consumer.

This makes its launch dependent on regulations beyond Tesla’s control.

It appears Musk intends to change that if Trump is elected on November 5.

This story was originally featured on Fortune.com