Elon Musk’s support for Donald Trump’s 2024 presidential campaign may be one of the boldest moves in his career—and one of the most financially rewarding.
In October, Musk contributed nearly $44 million to a super PAC supporting Trump’s presidential comeback, raising his total donations to nearly $119 million, according to recent campaign finance reports cited by CNN.
Beyond financial backing, Musk has actively endorsed Trump, even appearing on the campaign trail. As a result, Musk’s net worth has surged by over $70 billion, now exceeding $300 billion, a staggering 139,900% return on his election investment, as noted in the Kobeissi Letter.
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Trump’s regulatory stance: A “Dream” for Tesla’s autonomous tech
Dan Ives of Wedbush Securities, a noted Tesla (NASDAQ: TSLA) bull, recently suggested in a CNBC interview that Trump’s regulatory approach could serve as a significant catalyst for advancing Tesla’s full self-driving (FSD) and autonomous vehicle projects.
Ives describes this potential shift as a “dream” scenario for Tesla investors, predicting that Trump’s administration would prioritize rapid tech innovation, accelerating FSD development by a year due to fewer regulatory hurdles.
He anticipates this favorable climate could add $40 to $50 per share to Tesla’s stock, potentially boosting its market cap to between $1 trillion and $1.5 trillion.
“If Trump is elected, he’ll likely scale back EV tax credits, which, from a competitive perspective, is a positive for Tesla. And that’s huge—Trump would fast-track autonomous and FSD [full self-driving]; Cybertruck’s release could even be pushed forward by a year. For Tesla bulls, this scenario is ideal.” Dan Ives
Market rally: Tesla reaps immediate gains post-election
Tesla, Musk’s flagship company, has already seen significant benefits from Trump’s victory, surpassing a $1 trillion market cap for the first time since early 2022. Investors, optimistic about Trump’s pro-Tesla policies, drove the stock higher.
Ives highlights specific advantages a Trump presidency could bring—the possible rollback of federal EV tax credits, which would give Tesla a “clear competitive edge” over smaller rivals; tariffs on Chinese imports, limiting low-cost competition from Chinese EVs; and expedited approvals for Tesla’s self-driving technology, to name a few.
Valuation surges, but risks loom
Following Trump’s re-election, Tesla’s stock surged, opening 13% higher and closing with a nearly 15% gain, reaching a current price of $322.
This surge boosted the value of Musk’s 411 million Tesla shares by over $15 billion in a single day, securing his status as the world’s wealthiest individual. However, Trump’s presidency could also pose challenges for Tesla.
While Trump’s policies might favor Tesla by reducing support for smaller EV players, his hardline stance on China could bring risks. Tesla relies heavily on its Shanghai plant for over 40% of its global deliveries, and renewed trade tensions could disrupt its supply chain and impact profitability.
Musk’s $50 million election investment has yielded enormous financial gains, positioning Tesla for potential long-term success under Trump’s administration.
By strategically supporting Trump, Musk has taken one of the boldest risks of his career—a bet that could be remembered as his greatest trade ever.
Featured image via Shutterstock
