As Donald Trump celebrated his presidential victory early Wednesday morning, Elon Musk was right there with him.
“A star is born. Elon,” Trump said onstage at his Mar-a-Lago resort, thanking the world’s richest person for spending two weeks campaigning in Pennsylvania.
Musk, who poured at least $130 million into a pro-Trump campaign effort, turned Trump support into yet another full-time job in recent months, funding a swing-state operation to register voters and using his social media platform X to constantly tout his preferred candidate, frequently with misinformation.
Musk’s investment in Trump is already paying off, even though Trump doesn’t take office until Jan. 20.
Tesla shares soared 15% on Wednesday, adding roughly $15 billion in paper value to Musk’s net worth. The electric vehicle maker faces headwinds in the global market from China-based competitors, declining European sales and consumers’ growing distaste for his political views.
But with Musk cozying up to Trump, and the president-elect promising to slash the types of regulations that Musk abhors, Wall Street is betting Tesla, on balance, will be a beneficiary.
Musk is tied to two companies that are heavily dependent on government subsidy. Tesla’s electric vehicles are subsidized by tax credits. And China produces its most significant competition, and Trump has threatened to tariff Chinese products. Attracting his followers to Tesla is also a nice side effect.
The other company is SpaceX, which handles most of the US government’s space launch outsourcing.
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As Donald Trump celebrated his presidential victory early Wednesday morning, Elon Musk was right there with him.
“A star is born. Elon,” Trump said onstage at his Mar-a-Lago resort, thanking the world’s richest person for spending two weeks campaigning in Pennsylvania.
Musk, who poured at least $130 million into a pro-Trump campaign effort, turned Trump support into yet another full-time job in recent months, funding a swing-state operation to register voters and using his social media platform X to constantly tout his preferred candidate, frequently with misinformation.
Musk’s investment in Trump is already paying off, even though Trump doesn’t take office until Jan. 20.
Tesla shares soared 15% on Wednesday, adding roughly $15 billion in paper value to Musk’s net worth. The electric vehicle maker faces headwinds in the global market from China-based competitors, declining European sales and consumers’ growing distaste for his political views.
But with Musk cozying up to Trump, and the president-elect promising to slash the types of regulations that Musk abhors, Wall Street is betting Tesla, on balance, will be a beneficiary.
More: [https://www.cnbc.com/2024/11/07/how-elon-musk-stands-to-cash-in-on-trumps-presidential-victory.html](https://www.cnbc.com/2024/11/07/how-elon-musk-stands-to-cash-in-on-trumps-presidential-victory.html)
Musk is tied to two companies that are heavily dependent on government subsidy. Tesla’s electric vehicles are subsidized by tax credits. And China produces its most significant competition, and Trump has threatened to tariff Chinese products. Attracting his followers to Tesla is also a nice side effect.
The other company is SpaceX, which handles most of the US government’s space launch outsourcing.
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