Elon Musk, CEO of Tesla and owner of X (formerly Twitter), saw his fortune surge by around $13 billion just hours after his ally, Donald Trump, won the U.S. presidential election. Investors were quick to predict that Trump’s victory could bring favorable conditions for Musk’s primary venture, Tesla (TSLA), causing shares to jump by 13% at Wednesday’s market open, according to CNN.
This market response significantly boosted the value of Musk’s 411 million Tesla shares by over $13 billion, yielding an astronomical return on the $119 million he has reportedly donated to Trump’s campaign efforts.
Musk has shown strong support for Trump throughout the election, donating heavily and even interviewing the former president on X.
The Federal Election Commission notes that Musk has contributed close to $119 million through a political action committee aimed at backing Trump, making him one of Trump’s most high-profile supporters in the tech sector.
While Musk has historically benefited from government support for his ventures, including Tesla and SpaceX, some speculate Trump’s stance on electric vehicles (EVs) could create a more challenging environment.
Trump has expressed skepticism about EVs, calling them costly and job-threatening to the traditional auto industry. His pledge to repeal what he terms “Biden’s EV mandate,” despite no formal mandate existing, adds uncertainty.
Though Trump’s policies could impact federal incentives for EVs, analysts say Tesla might weather the changes, possibly even finding competitive advantage in a reduced-subsidy market.