Elon Musk, the CEO of Tesla and owner of X (formerly Twitter), saw his fortune soar by approximately $13 billion following the victory of his political ally, Donald Trump, in the U.S. presidential election.
Investors quickly speculated that Trump’s win would create a favorable environment for Musk’s flagship company, Tesla (TSLA), resulting in a 13% jump in Tesla’s stock price at the opening of the market on Wednesday, as reported by CNN.
This surge in Tesla’s stock value translated into a significant increase in the value of Musk’s holdings—an additional $13 billion—boosting the returns on his reported $119 million in donations to Trump’s campaign efforts.
Musk has been a vocal supporter of Trump throughout the election cycle, making sizable contributions and even hosting an interview with the former president on X. According to the Federal Election Commission, Musk has contributed nearly $119 million through a political action committee supporting Trump, making him one of the most high-profile tech industry backers of the former president.
Despite Musk’s long history of benefiting from government support for both Tesla and SpaceX, there are concerns that Trump’s views on electric vehicles (EVs) could pose challenges for the sector. Trump has expressed doubts about the future of EVs, questioning their cost-effectiveness and their impact on traditional auto jobs. His stance on potentially rolling back what he calls “Biden’s EV mandate,” despite no such mandate formally existing, adds an element of uncertainty.
Even so, analysts believe that while Trump’s policies might reduce federal incentives for EVs, Tesla could still thrive, possibly even gaining a competitive edge in a market with fewer subsidies.
