Tesla and X owner Elon Musk experienced a massive boost in his wealth, with an increase of around $13 billion following the U.S. presidential election win of his ally, Donald Trump. Early Wednesday morning, investor optimism about Trump’s pro-business stance fueled a 13% surge in Tesla stock, marking a significant gain in Musk’s net worth and aligning with his notable support for Trump throughout the campaign.
Musk’s 411 million Tesla shares saw a sharp increase in value after the election, resulting in a more than $13 billion boost to his fortune. This increase represents a massive return on his $119 million investment in support of Trump, a contribution documented in Federal Election Commission filings. As one of Trump’s high-profile backers, Musk contributed to a political action committee he created to aid Trump’s campaign, participated in campaign rallies, and even hosted a free, live interview with Trump on his social media platform X.
Wedbush Securities tech analyst Daniel Ives commented on Musk’s strong alignment with Trump, calling it a “bold, calculated commitment.” Musk’s support for Trump highlights a notable business alliance between the two, with Trump’s policies expected to directly influence Musk’s ventures, particularly Tesla. Under Biden, Musk’s companies benefited from substantial government support. Biden’s administration had invested heavily in promoting electric vehicle (EV) infrastructure, granting billions in loans for EV and battery manufacturing, incentives for EV buyers, and significant funding for building charging stations across the country.
While some of this support may continue under Trump, his administration could potentially reduce or re-evaluate EV incentives. Despite Musk’s alignment with Trump, some of Trump’s public remarks signal possible challenges for Tesla and the broader EV industry. Trump has previously criticized EVs, calling them costly, inconvenient, and job-damaging for the American auto industry. His skepticism raises concerns over whether Tesla, a leader in the EV market, will continue to benefit from federal support at previous levels.
Nevertheless, with government assistance historically integral to Tesla’s growth and Musk’s business model, Trump’s election could mark a pivotal moment for Tesla’s future trajectory. Musk’s celebratory post on X following Trump’s win emphasized a “clear mandate for change” and reflects his strategic alignment with Trump’s political platform, which could shape both his ventures and the broader EV industry’s future.
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