Elon Musk’s fortune is on track to rise by approximately $15 billion, as Tesla’s stock surges in response to Donald Trump’s victory in the US presidential election.
Investors are betting that Trump’s policies, particularly those favoring deregulation and tax cuts, will benefit Musk’s companies, including Tesla and SpaceX.
In early trading, Tesla’s shares jumped as much as 14%, adding approximately $113 billion to the company’s market valuation. Musk, who holds a 12.8% stake in Tesla, stands to see a significant personal gain if these stock gains hold through the end of the trading day.
Musk, a prominent supporter of Trump, has actively backed the Republican candidate throughout the election cycle. He has also expressed support for Trump’s plan to loosen regulations, which Musk believes have hindered the growth of his companies, particularly SpaceX and Tesla’s autonomous vehicle division. Musk has been vocal about his concerns over regulatory overreach, and he has suggested that a Trump presidency could alleviate these issues, helping his businesses expand.
The surge in Tesla’s share price is part of a broader market response to the election outcome, with investors anticipating that Trump’s policies will be inflationary, driving up the value of assets like the dollar, bitcoin, and bonds. The possibility of tax relief and reduced regulations has particularly boosted stocks in sectors like banking and defense.
Tesla’s stock gains are a key contributor to Musk’s rising wealth. If the share price increase holds, Musk’s personal wealth is projected to grow by $15 billion, further solidifying his position as one of the wealthiest individuals in the world.
Musk’s backing of Trump has not been limited to financial support; he has been an outspoken advocate for the Republican Party, spending over $130 million to back Republican candidates and policies. Should Trump win a second term, Musk is expected to play a significant role in the administration, with some reports suggesting that he may be appointed to lead a government efficiency commission.
While Musk’s wealth is set to rise with Trump’s victory, other sectors are experiencing less favorable outcomes. Shares in renewable energy companies, such as NextEra Energy and First Solar, have fallen amid concerns that Trump could reverse climate regulations introduced under the Biden administration.
With input from Reuters, Bloomberg, Financial Times, and the Telegraph.
