Musk's Trump card pays off: $13 billion richer

Elon Musk's $13 billion gain after Trump's presidential win

Musk's substantial support for Trump played a significant role in this development...

Elon Musk's wealth surges $13 billion after Donald Trump's presidential election victory, driven by a 13% increase in Tesla shares.

Elon Musk's wealth skyrocketed by $13 billion following Donald Trump's presidential election victory, thanks to a 13% surge in Tesla shares. This significant boost came after investors predicted a favorable business environment for Musk's electric vehicle company under Trump's leadership.

Musk's substantial support for Trump played a significant role in this development. He contributed nearly $119 million to a pro-Trump political action committee, making him the largest business backer of Trump's candidacy. Musk also publicly endorsed Trump, appearing alongside him at rallies and hosting an exclusive interview on his social media platform, X.

Factors Contributing to Musk's Wealth Surge

Tesla Share Price Increase: 13% surge in Tesla shares following Trump's victory 

Musk's Tesla Holdings: 411 million shares, now valued at over $13 billion more 

Donations to Trump: $119 million contributed to pro-Trump PAC 

Public Endorsement: Musk's appearances at Trump rallies and exclusive interview on X

Daniel Ives, a tech analyst at Wedbush Securities, noted that Elon Musk has made a significant gamble on Donald Trump's presidential victory, saying “He's bet big here. He dove into the deep end of the pool on this election.” Musk's substantial wealth is largely tied to government support for his companies, including Tesla and SpaceX.

Musk's companies have historically benefited from government backing, which would have likely continued under Vice President Kamala Harris' leadership. However, Trump's victory may lead to reduced or eliminated government support for electric vehicles. Surprisingly, this might not harm Tesla, as ending government support could actually benefit the company.

Musk enthusiastically celebrated Trump's win on his social media platform X, tweeting, “The people of America gave @realDonaldTrump a crystal clear mandate for change tonight.” Despite this optimism, Trump's presidency poses potential risks to Musk's investments, given his openly hostile stance toward electric vehicles, citing concerns about expense, limited range, and job destruction.

Donald Trump's plans are sparking concerns, particularly his vow to end “Biden's EV mandate,” despite the mandate's nonexistence. This ambiguity raises questions about Trump's actual target.

Trump's administration may roll back government support for electric vehicles, including:

Loans for EV Manufacturing: Billions of dollars in loans encouraging automakers to invest in US-based EV and battery factories.

Charging Infrastructure Support: Funding for charging stations.

Tax Credits: Up to $7,500 for eligible electric car buyers.

Interestingly, analysts suggest Tesla might benefit from reduced government support, as it would eliminate subsidies for competitors, giving Tesla a competitive edge.