Elon Musk has made a series of risky bets throughout his career with companies like SpaceX and Tesla, which have paid off and made him the world’s wealthiest person. His latest gamble on supporting Donald Trump’s presidency is likely to further increase his influence and wealth, as Tesla shares surged following news of Trump’s victory. Trump has expressed interest in having Musk serve as a government efficiency advisor in his administration, suggesting that regulations on big companies may be less stringent.
Despite his previous frosty relations with Biden, Musk’s support for Trump has been significant, as he funneled about $120 million to Trump and Republican candidates through his America PAC and made public appearances at Trump rallies. This has led to some backlash from Tesla’s core buyer base, who are largely climate-conscious consumers. However, Musk’s motivations seem to be more focused on changing the future of humanity rather than solely profit-based interests.
Tesla is currently facing a series of ongoing reviews by federal regulators for accidents involving its Autopilot and Full Self-Driving features, as well as workplace hazards and industrial pollution. SpaceX has also been fined for violating groundwater rules. Despite these challenges, Musk’s focus on expanding Tesla’s offerings to include robotaxis, robotics, and AI is likely to benefit from a Trump administration that may push for fewer regulations overall.
Musk’s close relationship with Trump may make him a singularly influential figure in the next few years, as Trump’s policies could potentially benefit Tesla by limiting federal barriers to technology like autonomous driving. Equity analyst Dan Ives believes that Trump’s presidency could give Tesla a competitive advantage in the EV industry, even if EV rebates and tax incentives are pulled. Musk’s willingness to work with Trump and navigate complex international relationships, particularly with China, will be crucial in maintaining Tesla’s success.
While the partnership between Musk and Trump may have its benefits, there are also risks involved, as Trump is known for tiring of big egos quickly. Musk’s involvement in the new administration could be significant, especially in pushing for fewer regulations that could benefit his businesses. However, it remains to be seen how Trump’s policies on electric vehicles and trade tariffs will impact Tesla’s operations, which rely on imported parts and materials. Overall, Musk’s willingness to take risks and capitalize on opportunities could further solidify his position as one of the most influential executives in the new administration.
