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The Musk trade that's beating the Trump trade: Tesla, X, xAI, dogecoin

Feb 21, 2025 - businessinsider.com
During the Trump era, Elon Musk's assets have significantly increased in value, with his net worth growing by $135 billion since Trump's election victory. This growth is evident across Musk's companies, including Tesla, SpaceX, and xAI, as well as assets like Dogecoin. Tesla's stock has risen 42% since the election, aided by Musk's ambitious plans and Trump's rollback of EV tax credits, which benefits Tesla over its competitors. Dogecoin has surged 60%, riding on Musk's endorsement and political ties.

Musk's acquisition of Twitter, now X, has seen a financial turnaround, with debt sales exceeding expectations and advertisers returning. xAI is experiencing a surge in investor interest, with plans to raise $10 billion at a $75 billion valuation. SpaceX's valuation has also increased, with significant deals for its Starlink division. Overall, Musk's ventures have thrived, contrasting with the fading "Trump trade."

Key takeaways:

  • Musk's net worth has increased by $135 billion since Trump's election victory, with assets like Tesla, xAI, and SpaceX seeing significant valuation increases.
  • Dogecoin, Musk's favorite meme cryptocurrency, has surged about 60% since Trump's election win, riding a wave of enthusiasm linked to Musk and Trump's political ties.
  • X, formerly Twitter, has experienced a financial resurgence, with banks successfully selling debt related to Musk's acquisition and advertisers returning to the platform.
  • xAI and SpaceX have both seen substantial valuation increases, with xAI in talks to raise $10 billion at a $75 billion valuation and SpaceX reaching a $350 billion valuation.
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