Billionaire Elon Musk is set to benefit significantly from his close ties with U.S. President-elect Donald Trump, following Musk’s strong support during the 2024 campaign. Tesla shares surged by 14% after Trump’s victory over Vice President Kamala Harris, with Musk donating millions to the campaign and gaining influence as a potential head of a government efficiency commission designed to cut federal spending. Musk’s influence will be bolstered by his already significant role in U.S. defense through Starlink, as well as his leadership at Tesla.
While Musk benefited from policies Trump disliked, such as solar and electric vehicle incentives, the shift in administration may work in his favor. Tesla’s position is strengthened by Trump’s commitment to reducing EV mandates, a move likely to affect Musk’s competitors more than Tesla, due to its leading market share. The electric vehicle industry, including companies like Lucid Group and Rivian Automotive, faced setbacks, with shares falling in response to the shift in political dynamics.
Musk’s potential to secure favorable treatment under Trump could extend beyond EVs, as he also holds interests in space exploration, artificial intelligence, and carbon-free energy. Analysts predict that Musk will likely use his influence to navigate regulatory challenges more easily, especially regarding his space exploration venture, SpaceX, and autonomous driving technology. Despite regulatory uncertainties, Musk’s deep involvement in sectors that align with Trump’s agenda, including energy and deregulation, promises to solidify his position as a major player in U.S. policy shaping. However, concerns about conflicts of interest remain, especially as Musk continues to expand his reach across industries.
