NEW YORK – Billionaire Elon Musk stands to benefit greatly from his ties with US President-elect Donald Trump after the Tesla CEO became one of Trump’s most important supporters during the 2024 campaign.
Tesla shares jumped 14 per cent on Nov 6 after Trump defeated Vice-President Kamala Harris.
Mr Musk donated millions of dollars to Trump’s campaign. Trump has said he will establish a government efficiency commission headed by Mr Musk to cut federal spending.
His influence is expected to be significant at a time when Mr Musk already holds considerable power owing to his role as a major contractor with the US Department of Defence through his ownership of the Starlink satellite broadband system and as CEO of Tesla.
Mr Musk was a beneficiary of some policies Trump disliked, including the solar and electric-vehicle credits included in the Inflation Reduction Act passed by President Joe Biden in 2022.
Trump’s desire to reduce EV mandates may hurt Mr Musk’s competitors more than it hurts Tesla due to its volume of sales.
A group representing the EV industry said on Nov 6 it was ready to work with Trump, who has vowed to reverse many pro-EV policies of his predecessor.
‘Hedged his bets’
“Musk basically hedged his bets by his association with Trump and likely will get favourable treatment from the Trump administration,” said Mr Dennis Dick, trader at Triple D Trading.
Regulatory approval for Full Self Driving is going to be a big hurdle for Tesla, but Mr Musk is likely to get regulatory approvals more quickly with Trump on his side, Mr Dick said.
Tesla is set to add more than US$110 billion (S$144 billion) to its market value, if gains hold.
Shares of EV companies Lucid Group and Rivian Automotive fell 7.5 per cent and 9.4 per cent,