Elon Musk saw his fortune surge by around $13 billion just hrs 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 market open.
This market response significantly boosted the value of Musk’s 411m Tesla shares by over $13b, yielding an astronomical return on the $119m he has reportedly donated to Trump’s campaign.
Musk’s backing of Trump has been evident throughout the campaign. He contributed nearly $119 million to a political action committee (PAC) supporting Trump, as shown in Federal Election Commission filings.
Additionally, Musk has appeared at Trump’s campaign rallies and hosted a widely viewed interview with Trump on X, the social media platform he owns, solidifying his position as a prominent supporter in the business community, CNN reports.
“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, commenting on Musk’s outspoken support for Trump.
While much of Musk’s net worth was tied to Tesla and other ventures that have benefited from government support, including SpaceX, analysts suggest that even if Trump’s presidency leads to a reduction in federal backing for electric vehicles (EVs), Tesla may continue to thrive.
Though Trump previously criticised electric vehicles, stating they were too expensive, had limited range, and could harm jobs in the auto industry, some experts believed that a rollback of government incentives could favour Tesla, which became a dominant player in the EV market.