Elon Musk, the billionaire behind Tesla and X (formerly Twitter), saw his wealth jump by approximately $13 billion after Donald Trump’s victory in the 2024 U.S. presidential election.
The surge came as investors reacted positively to the prospect of Trump’s leadership, particularly in relation to Musk’s flagship company, Tesla (TSLA).
Shares of the electric vehicle maker soared 13% when the market opened on Wednesday, CNN reported.
This increase in Tesla’s stock price translated into a substantial gain for Musk, who owns around 411 million shares.
The rise in his Tesla holdings more than offset the nearly $119 million he has invested in supporting Trump through a political action committee, yielding an extraordinary return of over 11,000%.
Musk has been a vocal supporter of Trump throughout his political career, contributing significant funds to PACs aligned with the former president’s agenda.
He has also appeared at rallies with Trump and conducted a glowing interview with him on X, Musk’s own social media platform.
“He’s gone all in on this election,” said Daniel Ives, a tech analyst at Wedbush Securities. “Musk’s bet has paid off big, especially with the market’s reaction to a Trump victory.”
While Musk’s personal wealth has been bolstered by his involvement in both Tesla and SpaceX, much of his fortune has also been shaped by substantial government support for his ventures.
This includes loans and grants that have helped fund Tesla’s growth and SpaceX’s ambitions.
Even if a Trump administration reduces some of these supports, Musk’s financial position seems secure, with some analysts speculating that Tesla could even benefit if federal incentives for electric vehicles (EVs) are scaled back.
Despite the overall positive market response, Trump’s victory could still pose challenges for Musk’s companies.
Trump has been a vocal critic of electric vehicles, claiming that EVs are expensive, impractical, and could harm American jobs in the auto industry.
If Trump moves forward with his promises to roll back support for EVs, it could initially hurt Tesla.
However, some believe that the reduction or elimination of government subsidies for EVs might not have a major long-term impact on Tesla’s growth or Musk’s wealth.
In a series of tweets celebrating Trump’s win, Musk expressed confidence in the outcome, calling it a clear mandate for change.
He also reiterated his belief that Trump’s policies will be favorable to businesses like his.
One key area of concern for Musk is Trump’s stance on what he has described as “Biden’s EV mandate.”
While no such mandate exists, the Biden administration has offered considerable support for electric vehicle production, including billions in loans, tax credits for EV buyers, and funding for charging infrastructure.
If Trump follows through on reducing or eliminating these policies, it could create uncertainty for the EV industry, though Musk remains optimistic about Tesla’s ability to thrive regardless.
