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Elon Musk’s Risky Gamble On Trump Pays Off

Nov 06, 2024 - forbes.com
Elon Musk's high-stakes bet on Donald Trump's presidency is likely to pay off, making him an influential executive in the new administration and increasing his wealth. Following Trump's victory, Musk's net worth grew by $21 billion to $285.6 billion as Tesla shares surged 15%. His rocket company, SpaceX, is expected to benefit from federal contracts under the Trump government. Musk's support for Trump extends beyond short-term financial gains, as Trump has expressed interest in having Musk serve as a government efficiency advisor, which could lead to lighter regulations on big companies.

Despite potential backlash from Tesla's climate-conscious consumer base, Musk donated about $120 million to Trump and Republican candidates and made numerous public appearances at Trump rallies. Musk's evolving priorities, including a pivot towards robotaxis, robotics, and AI, are expected to benefit under the Trump administration. However, some uncertainty remains over whether Musk will influence Trump's policies on electric vehicles and trade tariffs. The bond between Musk and Trump is expected to make Musk a highly influential figure in the coming years, provided the current rapport continues.

Key takeaways:

  • Elon Musk's net worth grew by $21 billion to $285.6 billion as Tesla shares surged 15% following news of Trump's victory.
  • Musk, who had never been a major campaign donor, funneled about $120 million to Trump and Republican candidates through his America PAC.
  • Tesla is facing a series of ongoing reviews by federal regulators, including the National Highway Traffic Safety Administration, for accidents involving its Autopilot and Full Self-Driving features.
  • Some Tesla investors are thrilled at the prospect of Musk pushing for fewer regulations in his potential role as a government efficiency advisor in the new administration.
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