Tesla CEO Elon Musk's endorsement of Donald Trump on Wednesday saw the electric car company's stock rise nearly 15% and add roughly $20 billion to the world's richest people's net worth. , won their own victory.
Billionaire tech founder donated millions to pro-Trump PAC to rally on former president's behalf and offer $1 million a day giveaway to encourage Americans to vote early .
His efforts paid off when Trump defeated Vice President Kamala Harris in Tuesday's presidential election.
President Trump called Musk a “super genius” after winning in the early hours of Wednesday after winning enough electoral votes to ensure his return to the White House.
Musk was photographed waiting for the election results with Trump at Mar-a-Lago, and on Wednesday he posted a photo of himself saluting the American flag on his social media platform X.
“It's morning again in America,” Musk wrote.
President Trump has said he will consider eliminating tax credits for purchasing electric vehicles, which could hinder sales by EV manufacturers.
But Wedbush Securities analyst Dan Ives said in a note to clients that a Trump victory would still be mostly positive for Tesla and Musk.
“Tesla has unparalleled scale and reach in the EV industry, and this dynamic, coupled with rising Chinese tariffs that will continue to displace cheaper Chinese EV players, will make Musk more likely to move forward in a non-EV subsidy environment.” “This could give Tesla a clear competitive advantage,” he said. “It's unlikely that (BYD, Nio, etc.) will flood the U.S. market in the next few years.”
Mr. Ives said Mr. Trump may also pursue self-driving initiatives for Tesla and Waymo vehicles.
The analyst said, “If self-driving/FSD accelerates from 2025 and becomes a tailwind for CyberCab, we think Tesla stock could increase by $40 to $50 per share with Trump's victory.'' said.
On Wednesday, Tesla rose $37.09, or 14.75%, to close at $288.53, adding $120 billion to the company's market capitalization.
Musk owns a 13% stake in this pioneering EV company, a huge chunk of his fortune, and has earned over $20 billion in profits in a single day, putting his estimated fortune at $285.6 billion. are. According to Forbes.
“Musk is basically risk-averse with Trump and will probably receive preferential treatment from the Trump administration,” said Dennis Dick, a trader at Triple D Trading.
President Trump has announced that he will appoint Musk to head the new Department of Government Efficiency (DOGE). DOGE (a reference to a popular meme coin).
In a speech at Trump's rally at Madison Square Garden last month, Musk claimed he could save $2 trillion from the federal budget as part of the Government Efficiency Commission.
“Your money is being wasted. The Government Efficiency Department will fix that,” he said. “We'll get the government off your back and out of your wallet.”
It's unclear how Musk will deal with conflicts of interest in the auto, space, health care, construction and artificial intelligence industries, or whether he will leverage them under the Trump administration's hands-off approach to regulation.
Mamta Valecha, a consumer discretionary analyst at Quilter Cheviot, said the role of overseeing deregulation and spending cuts will give Musk “more influence over U.S. policy on AI, space exploration and EVs. “He has a direct interest in all of this through Tesla and other ventures.”
Mr. Musk may try to use his influence to reduce regulatory scrutiny of his business. He has been a vocal critic of the federal government's review of SpaceX's rocket business and wants to expedite approval of self-driving technology.
He is also a big supporter of carbon-free energy, as Tesla is a major supplier of solar power systems and batteries. President Trump has promised to crush the offshore wind industry and cancel all unspent funds under Biden's signature climate law, the Inflation Control Act.
But the law has yielded big benefits in Republican-dominated states. Musk is building his second EV factory in the US in Texas.
with post wire
