Elon Musk $22b richer following Trump victory
Elon Musk bet big on Donald Trump during the US election – and that gamble is already paying off handsomely.
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Elon Musk’s gamble on Donald Trump has paid off handsomely, with his personal stake in Tesla increasing by about $US15 billion ($22.5b) following the US election.
Tesla’s share price hit a year-long high on the back of Donald Trump’s victory in the Presidential election.
The company’s value rose by about $US120 billion ($180 billion) in the 24 hours following a decisive victory that saw Trump describe Tesla founder Elon Musk as a “super genius”.
MORE:Tesla EV vs Toyota Hybrid
Individual shares of the electric car brand led by Musk rose from $US243.52 the day before the election to $US284.78 shortly after Trump declared victory, and continued to $US299.75 on Thursday.
Prices for rival electric car brands including America’s Rivian and Lucid, and China’s BYD, fell following the result.
Trump says the tech mogul will lead a new department of government efficiency intended to cut red tape for businesses.
MORE:Self-driving Taxi tested in the US
Musk’s businesses, including the Starlink satellite internet service and SpaceX rocket launching and retrieval firm, could benefit from looser regulations and the potential for government contracts.
Musk is reported to have spent about $US130 million ($194.5m) backing Trump in the lead-up to the election.
His ownership of social media service X, formerly known as Twitter, could also benefit from changes to communications regulations in the US.
MORE: How a Trump Presidency could effect EVs.
As The Economist put it: “No CEO has ever bet so big on a commander-in-chief — and won”.
Reuters quoted an anonymous former SpaceX official as saying “Elon Musk sees all regulations as getting in the way of his businesses and innovation”.
“He sees the Trump administration as the vehicle for getting rid of as many regulations as he can, so he can do whatever he wants, as fast as he wants.”
Gita Johar, a Columbia Business School professor who researches consumer psychology, suggested to American radio network NPR that “government contracts would be given without much oversight to Musk”.
“And that’s lack of regulation, lack of oversight — all of which will serve to benefit Musk,” she said.
“Musk supported Trump so explicitly with unprecedented levels of support — not just financially, but in personally being there.
“And I think that the idea and the expectation was that ‘You take care of me and I’ll take care of you.’”
Originally published as Elon Musk $22b richer following Trump victory
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