Elon Musk, juggling multiple roles as CEO of Tesla, SpaceX, and X, has joined Donald Trump’s team as an advisor. This alliance could drive deregulation favorable to Tesla, boosting its stock and Musk’s fortune. However, his venture into social media and right-wing politics complicates his path, raising questions about future stability.
New Role with Trump: Elon Musk, CEO of Tesla, SpaceX, X, Neuralink, xAI, and the Boring Company, has taken an official advisory role with President-elect Donald Trump to help streamline government efficiency.
Increased Workload: Despite already juggling multiple companies, Musk adds another responsibility, potentially dividing his focus further from Tesla and other ventures.
Impact on Tesla:
- Tesla has faced declining sales, increased competition, and scrutiny over self-driving tech.
- Despite setbacks, Tesla stock surged 31% post-election due to optimism about Musk’s influence on deregulation under Trump, which could benefit Tesla in AI, autonomous driving, and tariffs.
Investor Sentiment: Analysts suggest Musk’s advisory role may be beneficial for Tesla shareholders, anticipating regulatory changes that could remove obstacles for Tesla and its technologies.
Musk’s Financial Gain: Musk’s personal fortune grew by $55 billion following Tesla’s stock increase after Election Day.
Potential Benefits Under Trump:
- Musk’s influence could lead to reduced regulations on Tesla and SpaceX.
- Trump’s opposition to electric vehicle tax credits may inadvertently benefit Tesla by reducing competition that relies on them.
SpaceX Growth: SpaceX remains strong, gaining a valuation of over $200 billion and continuing to outpace competitors like Boeing.
Challenges with X: Musk’s acquisition of X (formerly Twitter) has led to a significant value drop (80%), as advertisers pull back due to increased content issues on the platform.
Path to Influence: Musk’s controversial $44 billion acquisition of X and his active presence on the platform have drawn him into Trump’s circle, enhancing his influence and connection in MAGA-aligned spaces.
Future Uncertainty: Musk’s relationship with Trump could be pivotal but also uncertain, as Trump has previously distanced himself from allies.
Elon Musk’s partnership with Donald Trump marks a new phase in his career, blending business influence with political strategy. While this alliance could bring regulatory benefits to Tesla and SpaceX, Musk’s growing entanglement in political spheres could impact his ventures in unpredictable ways. As he balances business and ideological shifts, the long-term effects of Musk’s journey into political influence remain to be seen.