Asphalt 9: Legends
Early Wednesday, investors noted that Trump's victory would benefit Musk's significant public holding, Tesla (TSLA), causing its shares to rise by 13% at market open, according to CNN.
This increase boosted the value of Musk's 411 million Tesla shares by over $13 billion, yielding an impressive return of more than 11,000% on the $119 million he donated to Trump.
Musk was the most prominent business leader supporting former President Donald Trump's candidacy.
Musk has contributed nearly $119 million to a political action committee he established to back Trump, as per Federal Election Commission records. He has also appeared with Trump at rallies and conducted a flattering interview with him on X, his social media platform.
"He’s made a significant gamble here. He went all in on this election," said Daniel Ives, a tech analyst at Wedbush Securities.
A large portion of Musk’s substantial net worth is linked to the government support his companies, like Tesla and SpaceX, have received over the years. Even if Vice President Kamala Harris had won, much of that support would likely have continued.
However, even if government support for electric vehicles is reduced or eliminated, as expected with Trump's win, Musk's wealth will remain substantial. In fact, Tesla might benefit if government support for EVs is withdrawn.
Musk posted several tweets on X late Tuesday and early Wednesday celebrating Trump's victory.
"The people of America gave @realDonaldTrump a clear mandate for change tonight," he wrote in one tweet.
However, Trump's victory could also negatively impact Musk's investment. Trump has criticized electric vehicles, claiming they are too costly, have limited range, and will harm jobs and the American auto industry. Yet, what might seem like the biggest setback for Tesla from another Trump presidency—a reduction or end of federal support for EVs—might not be so detrimental for Tesla and Musk.
Other aspects of Trump's plans could pose significant challenges.
Trump has promised to end what he calls "Biden’s EV mandate," although no such mandate exists, and it is unclear what he means.
Under Biden, there has been substantial government support for building and purchasing EVs, including billions in loans to encourage automakers to invest in EV and battery factories in the U.S., support for charging stations, and a $7,500 tax credit for many electric car buyers.
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