- Elon Musk became the first individual to surpass $400 billion in net worth.
- Tesla’s shares have reached an all-time high, adding $556 billion to its market capitalization.
- Trump could scrap the $7,500 EV tax credit and ease regulations for self-driving cars.
After aligning himself with Donald Trump and pouring $277 million into his successful 2024 presidential campaign, according to Federal Election Commission filings, Elon Musk has seen his personal wealth skyrocket, while Tesla shares have reached an all-time high. This comes despite Trump’s long-standing opposition to electric vehicles. However, with Musk now in Trump’s ear—and seemingly at every event he hosts—investors are encouraged by the prospect of fewer regulations.
Tesla Shares Surge Following Election
On Thursday, Tesla shares reached as high as $429 before dipping to $419.80 at the time of posting, marking a remarkable 69% rise since the election. This surge has added $556 billion to the company’s market cap, pushing Tesla’s stock price to levels not seen since late 2021—and far above its January 2023 low of $108.10. The uptick is being hailed as the “Trump bump,” with analysts pointing to Musk’s vocal support of Trump as a catalyst for the renewed interest in Tesla.
Read: Tesla’s Sub-$30K Model Q And 2025 Product Plans; Key Insights From The Deutsche Bank Report
As Craig Irwin, an analyst at Roth MKM, told CNBC: “Musk’s authentic support for Trump likely doubled Tesla’s pool of enthusiasts and lifted credibility for a demand inflection.”And it’s not just Roth MKM—Goldman Sachs, Bank of America, and Morgan Stanley have also raised their price targets for Tesla in response to the stock’s impressive rally.
Musk’s Growing Influence in Government
In return for his significant backing of Trump’s re-election campaign, Elon Musk will co-lead the newly formed Department of Government Efficiency with fellow billionaire Vivek Ramaswamy. Musk is believed to be advising Trump on which agencies, budget items, and regulations should be trimmed down or eliminated altogether. This influence could pave the way for policy shifts that benefit Musk’s business interests.
Musk has also expressed interest in establishing a federal approval process for autonomous vehicles. As it stands, approvals happen at the state level, but if Musk can leverage Trump’s support to shift this to the federal level, his long-awaited robotaxi, the Cybercab, could see a major boost.
Additionally, Musk may push Trump to eliminate the current $7,500 federal EV tax credit—an action that could hurt Tesla’s competitors more than it impacts his own company, which is better positioned to absorb any short-term effects.
Musk’s Wealth Reaches Unprecedented Levels
With his newfound influence as Trump’s close ally, Musk’s personal fortune has skyrocketed—up by 77%, for those keeping track. According to the Bloomberg Billionaires Index, his wealth now stands at $447 billion, making him the first person in history to surpass the $400 billion net worth mark. In addition to the surge in Tesla’s stock price, SpaceX and other investors recently purchased $1.25 billion in shares from employees and insiders. This deal has boosted SpaceX’s valuation to $350 billion, adding an estimated $50 billion to Musk’s net worth.
