After a massive financial endorsement of Donald Trump's presidential campaign, Elon Musk becomes the first individual to surpass $400 billion in personal wealth. At the same time, Tesla's shares hit an all-time high, adding $556 billion to its market capitalization or a 69 percent increase.
Strategic support for lucrative spinoffs
Elon Musk reportedly invested $277 million in the Trump campaign, according to Federal Election Commission documents. Although the president-elect has long been critical of electric vehicles, his alliance with Musk could transform the regulatory landscape. Some investors see the collaboration as an opportunity to reduce regulations and boost business.
Tesla shares soar after the election
Following Donald Trump's victory, Tesla shares climbed as high as $429 before stabilizing at $419.80, marking a spectacular 69 percent rise since the election. This rebound propelled Tesla to levels not seen since late 2021.
Major institutions such as Goldman Sachs, Bank of America and Morgan Stanley raised their price targets for Tesla. According to Craig Irwin, analyst at Roth MKM, “Musk’s authentic support for Trump likely doubled Tesla’s pool of enthusiasts and lifted credibility for a demand inflection.”
Growing influence in government
In return for his support, Musk will co-lead the new Department of Government Efficiency, alongside Vivek Ramaswamy. He will advise the President-elect on which agencies to streamline and which regulations to eliminate, changes that could directly benefit his companies.
Elon Musk is also pushing for a federal approval process for autonomous vehicles, currently managed at state level. This reform could accelerate the arrival of his flagship project, the Cybercab robotaxi.
A future shaped by favorable policies
With his growing influence on 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 automotive industry.