After offering massive financial support to Donald Trump’s presidential campaign, Elon Musk becomes the first to see his personal fortune cross the 400 billion mark. Meanwhile, Tesla shares hit an all-time high, adding $556 billion to its market capitalization, an increase of 69%.
Strategic support for lucrative spinoffs
Elon Musk reportedly invested $277 million in Donald Trump’s campaign, according to Federal Election Commission documents. Although the president-elect has long criticized electric vehicles, his alliance with Elon Musk could transform the regulatory landscape. Some investors see the collaboration as a chance to reduce regulations and boost business.
Tesla Stock Soaring After Election
Following Donald Trump’s victory, Tesla shares rose as high as $429, before stabilizing at $419.80, marking a dramatic 69% rise since the election. This rebound has propelled Tesla to levels not seen since the end of 2021.
Major firms, such as Goldman Sachs, Bank of America and Morgan Stanley, have raised their price targets for Tesla. According to Craig Irwin, an analyst at Roth MKM, “Musk’s genuine support for Trump likely doubled Tesla’s enthusiast base and bolstered the credibility of new demand.” »
Tesla’s robotaxi | Photo: Tesla
Growing influence in government
In return for his support, Elon Musk will co-lead the new Department of Government Effectiveness, alongside Vivek Ramaswamy. The latter advises the president-elect on which agencies to streamline and which rules to eliminate, changes that could directly benefit his businesses.
Elon Musk is also campaigning for a federal approval process for autonomous driving vehicles, currently managed at the state level. This reform could accelerate the arrival of its flagship project, the Cybercab robotaxi.
A future shaped by favorable policies
With his growing influence over federal decisions, Elon Musk is positioning himself to reshape the market for electric vehicles and autonomous technologies. His alliance with the president-elect could signal a new era, both for Tesla and the auto industry.
