Elon Musk, CEO of Tesla and owner of social media platform X (formerly Twitter), has seen his fortune swell by $70 billion following Donald Trump’s election victory.
According to Forbes, Tesla’s stock price surged early 39 percent in just four trading days. This has lifted the company’s market cap beyond $1 trillion, propelling Musk’s net worth to approximately $320 billion.
The Trump Effect on Musk’s Investments
Musk’s financial backing of Trump’s campaign has paid off handsomely.
He spent around $130 million supporting Trump, including funding a swing-state voter registration effort aimed at right-leaning voters. Musk’s involvement extended beyond monetary contributions:
- Campaign Surrogate: Musk led rallies and served as a high-profile supporter of Trump, using his platform X to bolster Trump’s message and criticize his opponent, Vice President Kamala Harris.
- Social Media Strategy: Musk utilized X to share posts favoring Trump but has been accused of spreading misinformation about his opponent Kamala Harris, immigration and voter fraud.
Trump publicly acknowledged Musk’s support, crediting him during his victory speech: “A star is born — Elon!”
Need Career Advice? Get employment skills advice at all levels of your career
Tesla Stock Surge and Billionaire Gains
The post-election bump has been significant for Musk’s wealth, which is largely tied to Tesla’s stock performance.
With Tesla shares soaring, Musk now holds a $90 billion lead over Oracle founder Larry Ellison, the world’s second-richest person.
Ellison is also a close ally of Musk and a longtime Republican donor. He saw a notable increase in his net worth, gaining about $20 billion after Oracle’s stock rose 10 percent.
Musk currently owns 411 million Tesla shares and 304 million performance-based options.
A pending court ruling could further boost his compensation package, which was previously voided but may be reinstated soon.
Looking for a job? Visit www.whatjobs.com today
Musk’s Political Maneuvering and Influence
Since the election, Musk has actively positioned himself as a key influencer in Trump’s incoming administration:
- Direct Involvement: Musk briefly joined a call between Trump and Ukrainian President Volodymyr Zelenskyy, according to NBC News.
- Staffing Decisions: Musk has reportedly been advising on staffing for Trump’s new administration and has spent considerable time at Mar-a-Lago, Trump’s Florida resort.
- Endorsements: Musk conducted a poll on X about the Senate majority leader and endorsed Republican Senator Rick Scott for the position.
Musk’s influence in shaping policy could play a crucial role in his broader business interests.
Gene Munster of Deepwater Asset Management said:
“Musk has the golden touch right now and has the ear of the incoming administration.”
Hiring? Post jobs for free with WhatJobs
Regulatory Benefits for Musk’s Business Empire
Musk stands to gain from reduced regulatory scrutiny under the Trump administration.
His sprawling business empire, which includes Tesla, SpaceX, Neuralink, xAI, and the Boring Company, has faced multiple federal investigations and lawsuits related to workplace safety, securities violations, and environmental issues.
The executive branch’s influence over regulatory agencies could potentially ease the pressure on Musk’s companies, as investigations may be scaled back or dropped.
This deregulation could particularly benefit:
- Tesla: Facing scrutiny over vehicle safety and consumer fraud, Tesla could see fewer regulatory hurdles.
- SpaceX: A Trump presidency may boost SpaceX’s projects, including defense contracts and plans for Mars exploration.
- xAI: Musk’s AI venture could receive favorable treatment as the incoming administration shapes new AI regulations.
Munster added:
“It’s hard to see how this could play out negatively for Elon.”
Tesla has also benefited from a broader rally in the cryptocurrency market, as Bitcoin soared to a record high of over $88,000 following Trump’s win.
At the end of the third quarter, Tesla reported digital assets valued at $729 million, making the crypto surge another win for the company.
Coinbase CEO Brian Armstrong similarly saw his wealth increase by $4.5 billion as the crypto exchange’s stock jumped 67 percent post-election.
Coinbase had supported pro-crypto candidates, signaling a potential shift towards more favorable regulations for the industry.
What’s Next for Musk?
Musk’s strong ties with Trump and the Republican Party could further solidify his influence over policy decisions that affect his businesses.
Key questions moving forward include:
- How will Musk use his relationship with the Trump administration to benefit his various companies?
- Will reduced regulatory oversight lead to fewer legal challenges for Tesla, SpaceX, and X?
- Can Musk maintain his popularity among investors while navigating political controversies?
As Musk’s wealth continues to grow, his involvement in politics and business could reshape the regulatory landscape, potentially giving him unprecedented influence over both the tech industry and government policy.
