Elon Musk’s investments in Donald Trump’s presidential campaign have yielded a substantial return.
Since Trump’s victory, Musk’s net worth has skyrocketed by approximately $70 billion, largely due to a dramatic surge in Tesla’s stock price.
In the last four trading days following the election, Tesla’s stock price soared by an impressive 39%, propelling the company’s market capitalization well beyond $1 trillion.
This remarkable performance has significantly boosted Musk’s fortune, which is largely tied to his Tesla holdings.
Musk’s all-in approach to supporting trump
Elon Musk’s backing of Trump has gone well beyond mere financial assistance.
He spearheaded a voter registration drive, actively participated in campaign rallies, and offered $1 million giveaways to registered voters who signed petitions for his America PAC.
The billionaire also leveraged his social media platform, X (formerly Twitter), to champion Trump’s candidacy and frequently disseminate information about his opponent and various political issues.
From Mar-a-Lago to the White House: Musk’s influence on the Trump administration
Musk’s influence appears to extend beyond the campaign trail itself.
NBC News reported that he participated in a phone call between Trump and Ukrainian President Volodymyr Zelenskyy, meanwhile reports in The New York Times and ABC suggest that the X boss has been involved in discussions regarding staffing decisions for the new administration.
He has also been a frequent visitor at Trump’s Mar-a-Lago resort.
Brendan Carr, a potential nominee for the Federal Communications Commission, is considered a close ally of Musk.
Regulatory relief on the horizon? Musk’s companies poised to benefit
Musk has long advocated for reduced regulatory oversight, aiming to remove obstacles for his diverse business ventures, including Tesla, X, SpaceX, xAI, Neuralink, and the Boring Company.
These companies currently face numerous federal investigations and lawsuits related to various allegations, including securities law violations, workplace safety issues, environmental violations, consumer fraud, and vehicle safety defects.
Given the executive branch’s significant influence over regulatory bodies, Musk anticipates a more favorable regulatory environment under a Trump presidency.
Gene Munster of Deepwater Asset Management, a long-time Tesla bull, commented on CNBC, “He’s got the golden touch right now and has the ear.” Munster added that SpaceX and xAI are also likely to benefit from a Trump administration.
He concluded,
I’m stretched to try to find out how this could play out negative for Elon.
A rising tide: other tech billionaires benefit from Trump’s win
Musk and Larry Ellison, Oracle founder and the world’s second-richest person, are not the only tech billionaires experiencing post-election gains. Ellison, a close friend of Musk and a long-time Republican donor, has seen his net worth increase by about $20 billion due to Oracle’s 10% stock surge.
Coinbase CEO Brian Armstrong has also added approximately $4.5 billion to his wealth since Trump’s victory, with Coinbase shares soaring by 67% since the election.
The cryptocurrency exchange actively supported pro-crypto candidates, largely through the Fairshake PAC, setting the stage for a potentially more favorable regulatory environment for the crypto industry, which is also a win for Tesla, given its significant digital asset holdings currently valued at $729 million.
The rally in cryptocurrencies, with Bitcoin hitting a record high of over $88,000, further enhances Tesla’s financial position.
These developments paint a positive picture for Musk’s business empire under a Trump presidency.
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