Elon Musk, CEO of Tesla and owner of X (formerly Twitter), saw his fortune spike by a staggering $13 billion just hours after his ally, Donald Trump, clinched victory in the U.S. presidential election.
Investors swiftly reacted to Trump’s win, predicting that his presidency could create favorable conditions for Musk’s primary business, Tesla (TSLA), which saw its stock jump by 13% at the market’s open on Wednesday, according to CNN.
This surge in Tesla shares significantly boosted the value of Musk’s 411 million Tesla shares, yielding an impressive return on the $119 million he has donated to Trump’s political efforts.
Musk has been one of Trump’s most prominent supporters in the tech sector, channeling substantial financial backing into Trump’s campaign through a political action committee (PAC).
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Despite Musk’s strong support for Trump, including an interview with the former president on X, there are concerns about how Trump’s policies could affect Musk’s ventures, particularly Tesla.
Trump has expressed skepticism about electric vehicles (EVs), calling them expensive and a threat to jobs in the traditional automotive industry. His promise to repeal what he refers to as “Biden’s EV mandate” — a term without formal foundation — has created uncertainty in the EV market.
However, analysts speculate that Tesla, which has historically benefited from government incentives, might still find ways to thrive, possibly even gaining a competitive edge in a market with reduced subsidies.
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