Tesla’s CEO Elon Musk was front and center during Donald Trump’s recent celebration of his presidential win on Wednesday morning. Trump praised Musk, referring to him as “a star” and expressing thanks for Musk’s significant efforts in campaigning in Pennsylvania.
Musk has invested over $130 million into initiatives supporting Trump’s campaign, and he has proactively campaigned in swing states to encourage voter registration. Additionally, he has utilized his social media platform, often referred to as X, to promote Trump, even sharing misleading information about various topics.
Musk’s financial backing of Trump is already showing positive returns. Following the election news, Tesla’s stock rose 15%, which contributed over $15 billion to Musk’s personal fortune. Despite some pressures in the market, especially from fierce competition in China and declining sales in Europe, many believe that Musk’s alliance with Trump may lead to beneficial outcomes, particularly with expected regulatory changes.
Trump’s victory speech highlighted Musk’s ventures beyond Tesla, including his space company, SpaceX. He appreciated Musk’s contributions, particularly for providing Starlink internet service to areas impacted by recent hurricanes in the U.S. This strong connection hints at beneficial prospects for Musk and his various businesses under a Trump administration.
Musk’s ties to Trump come at a crucial time; several of his companies are currently facing scrutiny and ongoing investigations by federal agencies. A change in administration might ease some of these pressures. His goal to influence the direction of these regulatory bodies could significantly impact Tesla, SpaceX, and his social media platform.
During a rally in New York on October 27, Musk received significant applause when he voiced his belief that the federal budget could be cut by $2 trillion. This statement was well-received by the audience and suggests Musk’s ambitions to reshape government spending. He emphasized his support for reducing governmental overreach, particularly concerning agencies that regulate businesses.
Musk aims to use his influence to accelerate the federal approval process for autonomous vehicles, reflecting Tesla’s ongoing developments in driverless technology, which still requires human oversight. His work with new ventures, like xAI, shows Musk’s continuous push into the realm of advanced technology, echoing similar products from tech giants.
Furthermore, SpaceX has thrived on federal contracts, receiving over $19 billion since 2008. The projections indicate this trend will continue, with many contracts coming in from defense and space agencies.
Amid this backdrop, Trump has yet to clarify his admin’s approach to electric vehicle tax credits, which significantly affect Tesla’s profits. While he proposes slashing income taxes, the impact of potential tariffs on Tesla’s supply chain remains uncertain.
Lastly, Musk’s associations with controversial political figures and events are garnering attention. He has shown a willingness to engage in politics, making clear that he plans to remain active and influential in future elections, especially at the local level. This commitment further solidifies his role in shaping political narratives and outcomes in the U.S.
