Elon Musk’s $20 Billion Surge Following Trump’s 2024 Re-election Victory
After Donald Trump won re-election in 2024, Tesla’s stock soared, pushing Elon Musk’s wealth up by $20 billion in a single day. Around $13 billion of that came from a 12.7% increase in Tesla’s stock price, a company where Musk holds 13% of the shares. Musk, the world’s richest person, also stands to benefit from the political shifts that a second Trump administration could bring, especially with less regulation and possible reductions in taxes and EV incentives.
Musk, who was a vocal supporter of Trump, made a substantial financial commitment to Trump’s campaign, contributing around $120 million. This support also extended to high-tech microtargeting ads to sway key voters. Trump, in his victory speech, praised Musk, calling him “a super genius” and a “new star,” recognizing his work with SpaceX and Tesla. While Trump has expressed past reservations about electric vehicles, including calling them too expensive and inefficient, his views have softened as he continued to support Musk.
The boost in Tesla’s stock price comes at a time when Musk’s other ventures, including SpaceX and the social media platform X (formerly Twitter), also contribute to his vast fortune. Trump’s re-election victory could mean fewer regulations for the tech and automotive sectors, which will likely benefit Musk’s interests. Tesla could face fewer hurdles in launching its ambitious Robotaxi service, expected to roll out in 2025, due to a more friendly regulatory environment under Trump’s administration.
Trump’s victory, combined with Musk’s influence, could drive key changes in the EV market, potentially reducing competition, especially from foreign companies. However, some analysts have cautioned that while Tesla will thrive under less government intervention, Musk’s influence on the political landscape and the business world is a double-edged sword. Trump’s earlier aggressive rhetoric about EVs might resurface, despite the ongoing alliance with Musk.
In a dynamic of shifting political alliances and corporate power, Musk’s increasing wealth is intricately tied to Trump’s political fortunes. For now, the business mogul appears set to reap the rewards of a political victory that could reshape the EV landscape and expand Musk’s reach even further.
