Elon Musk's unregulated paradise would be heaven for bad people, and hell for good people. Regulations don't just keep bad people in check: they reward good people for doing the right thing.
Without regulations, bad people get rewarded for behaving in wildly irresponsible ways, while good people are effectively punished for their own good deeds because they are costly and now seem pointless, because any good you do with your ethical restraint is easily outweighed by all the damage that the bad people are gleefully doing.
Take pollution for example: if you take away all anti-pollution regulations, some people might still try not to pollute. But for every one of those people, there will be five people whose pollution footprint skyrockets, and the good person's efforts will seem completely futile and pointlessly costly. What's the point of carefully disposing of your waste properly, when your neighbour is dumping paint thinner into the river that you share with him?
Look at traffic laws as another example: eliminate all penalties for running red lights and stop signs, and those behaviours would become rampant. Traffic chaos would ensue. Deaths would increase. And you could not possibly stop this by driving responsibly yourself: that's not how shared environments work.
Contrary to libertarian fantasies about self-regulating markets and invisible hands, the elimination of regulations will drop us all to the lowest common denominator, and reward the worst among us.