Elon Musk's fortune skyrockets as Tesla profits from Trump’s election

The fortune of Elon Musk, the founder of SpaceX and an outspoken supporter of Donald Trump, US President-elect, has increased by $26.5 billion after the shares of electric vehicle (EV) giant Tesla rose by nearly 15 per cent.

To speak in detail, on November 6, shares of Tesla surged by 14.8%, as investors anticipated that the return of Donald Trump to the White House would benefit the EV firm and its CEO, Elon Musk, Caliber.Az reports citing foreign media.

Tesla stands to gain significantly from a potential reduction in subsidies for electric vehicles, which could harm smaller competitors, and the likelihood of higher tariffs on Chinese imports, making it less likely that Chinese EVs (electrical vehicles) will flood the US market.

Wedbush analyst Dan Ives noted that Tesla's size and scale give it a competitive edge in a market with fewer subsidies while rising tariffs would push out cheaper Chinese EV manufacturers. Meanwhile, shares of rival electric vehicle makers such as Nio, Rivian, and Lucid saw declines.

Although Tesla has faced challenges this year, including a decline in sales and profit during the first half, its third-quarter profit rose by 17.3%. The company is also under investigation for its “Full Self-Driving” system following crashes, including one that resulted in a fatality.

Despite these hurdles, Tesla shares have gained 16.1% this year, bolstered by investor optimism regarding the political shift in Washington.

Elon Musk, renowned for supporting Donald Trump, played a crucial role in the US leader election win. Tesla owner’s involvement extended from financial backing to utilising his social media platform, X, for campaigning. Their shared views on tax cuts, free speech, and government roles could see Musk significantly contributing to Trump's administration. Musk made headlines in 2022 after acquiring Twitter and restoring Trump's banned account.

By Khagan Isayev