HIGHLIGHTS:

• Elon Musk’s Wealth Surge: Musk’s net worth increased by about $13 billion after Donald Trump’s presidential win, driven by a 13% rise in Tesla’s stock.
• Significant Support for Trump: Musk strongly backed Trump’s campaign, donating nearly $119 million to a political action committee supporting him and publicly endorsing him through rallies and an interview on his platform, X.
• Potential Impact on Government EV Support: Trump’s win may lead to reduced federal support for electric vehicles, but analysts believe Musk’s wealth and Tesla could remain secure or even benefit from such changes.
• Musk’s Enthusiasm for Trump’s Victory: Musk celebrated Trump’s win on social media, calling it a “crystal clear mandate for change” from the American people.
• Uncertain Future for EV Policies: Trump’s plans include ending what he calls “Biden’s EV mandate,” though no such mandate exists. However, under Biden, the government invested heavily in EV production, which could face new challenges under Trump’s administration.

United States of America – Billionaire Tesla and X owner Elon Musk’s wealth surged by around $13 billion shortly after his ally, Donald Trump, won the U.S. presidential election.

On Wednesday morning, investors noted that Trump’s victory would likely benefit Tesla, Musk’s major public company. Tesla shares jumped 13% at the market’s opening, as reported by CNN, driving up the value of Musk’s 411 million Tesla shares by over $13 billion. This increase represents an impressive return on Musk’s $119 million donation to Trump.

Elon Musk has shown significant support for Trump’s campaign, donating nearly $119 million to a political action committee dedicated to backing him, according to filings from the Federal Election Commission. Musk has also publicly supported Trump at rallies and even interviewed him on X, his social media platform.

“He’s bet big here. He dove into the deep end of the pool on this election,” said Daniel Ives, a tech analyst at Wedbush Securities.

Where fundings come to Musk’s companies

Musk’s wealth is heavily tied to government funding that supports his companies, Tesla and SpaceX. While much of that support would likely continue if Vice President Kamala Harris had won, Trump’s victory may change the outlook for electric vehicles. Even if federal support for EVs is reduced or cut, Musk’s wealth is expected to remain strong, with Tesla potentially even benefiting from a decrease in government EV mandates.

On election night and into early Wednesday, Musk tweeted his excitement over Trump’s victory.

“The people of America gave @realDonaldTrump a crystal clear mandate for change tonight,” he wrote in one tweet.

Trump on Electric Vehicles

However, Trump’s win might also bring challenges for Musk. Trump has previously criticized electric vehicles, claiming they are costly, limited in range, and harmful to the American auto industry. While a reduction in federal EV support could seem like a setback, it might not be as damaging to Tesla as it appears on the surface.

Trump has also promised to end what he calls “Biden’s EV mandate,” though no such mandate officially exists. Under President Biden, the U.S. government has invested significantly in EV production, including loans for factories, support for charging infrastructure, and a $7,500 tax credit for electric car buyers.

The impact of Trump’s policies on Musk’s ventures remains uncertain, but Musk appears optimistic about navigating any shifts in the EV landscape.