Elon Musk Poised to Profit if Trump Returns to White House: Tesla & SpaceX Boost
Donald Trump’s return to the White House could also benefit one of his most visible backers, Elon Musk.
The world’s richest man spent election night with Trump at his Mar-a-Lago resort in Florida, watching the results come in.
According to Federal Election Commission reports, Musk has already donated about $119 million to a political action committee he founded to support Trump. He has performed at Trump rallies and had a fawning interview with him on his social media site, X.
The president-elect has stated that if elected for a second term, he will invite Musk into his cabinet to minimize government waste. And, during his victory address at the Palm Beach Convention Center, Trump spent several minutes praising Musk and recalling the safe landing of a rocket built by one of his firms, SpaceX.
The businessman might benefit from Trump’s presidency since he owns SpaceX, which currently leads the market of sending government satellites into space. With a close ally in the White House, Mr Musk may capitalise on his government links.
Elon Musk’s backing of Donald Trump’s decisive victory for a second presidency gives the billionaire entrepreneur extraordinary influence to help his companies secure favorable government treatment. More here: https://t.co/9dxidlZka4
— Reuters Business (@ReutersBiz) November 7, 2024
Moreover, SpaceX has also begun to create spy satellites, just as the Pentagon and American espionage agencies appear ready to invest billions of dollars in them.
Elon Musk believes that all rules impede his enterprises and innovation, according to a former top SpaceX official who spoke on the condition of anonymity. He sees the Trump administration as a means of eliminating as many restrictions as possible, s and o he can do whatever he wants, as quickly as he wants.
Trump’s Victory Sparks Surge in Tesla Shares, but Risks Loom for Musk’s EV Empire
Meanwhile, early Wednesday, investors were wagering that Trump’s victory will also benefit Musk’s largest public asset, Tesla (TSLA), pushing shares of his electric vehicle maker up 13% at the market open and over 15% by the end of regular trading. That increased the value of Musk’s 411 million Tesla shares by more than $15 billion, representing a 12,761% return on his $119 million donation to Trump. It was a two-year high for Tesla shares, which had struggled recently and were up only 1% year to date as of Tuesday’s close.
https://twitter.com/crypto/status/1854392139163058195
However, even with Trump’s victory, Tesla faces certain risks. Trump has proposed 10% to 20% tariffs on foreign goods, which would also affect electric vehicle manufacturers outside the United States, particularly in China.
With Trump’s victory, he will be much harder on China, and the drawbacks may exceed the gains for Tesla, according to some analysts.
Much of Musk’s vast personal worth can be traced back to the government assistance his companies, including Tesla and SpaceX, have gotten over the years. Even if Vice President Kamala Harris had won, most of that money would still be flowing. However, even if some government funding for electric vehicles is reduced or eliminated as a result of Trump’s victory, Musk’s riches will remain unaffected. In reality, Tesla may benefit if government backing for EVs ceases.
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