Elon Musk’s wealth soars amid market response to Trump’s win
Musk’s financial boost comes in the wake of Trump’s win, which has already started to shift investor sentiment across the markets. While exact market dynamics remain complex, analysts point to Musk’s significant holdings in Tesla and other tech-driven ventures that have historically responded positively to business-friendly policies.
Tesla Shares Surge
Tesla’s stock surged on Wednesday as investors anticipated that the company and its CEO, Elon Musk, would benefit from Donald Trump’s return to the White House. Under a Trump administration, Tesla is expected to make substantial gains, especially as smaller competitors face challenges from potential cuts to subsidies for alternative energy and electric vehicles. Additionally, Trump’s proposed tariffs on Chinese imports make it less likely that Chinese electric vehicles will flood the U.S. market.
While Tesla’s shares rose 14.8%, stocks of competing electric vehicle makers declined. Nio, based in Shanghai, saw a 5.3% drop, while Rivian’s shares fell 8.3%, and Lucid Group’s shares dropped by 5.3%.
Tesla leads the U.S. electric vehicle market, holding a 48.9% market share as of mid-2024, according to the U.S. Energy Information Administration.
Bezos, Ellison also see gains
Other tech billionaires also witnessed substantial gains following Trump’s victory. Amazon founder Jeff Bezos and Oracle co-founder Larry Ellison both saw their wealth increase significantly. This reaction among top billionaires highlights a larger trend of tech sector growth and investor confidence in the wake of Trump’s return to office.
Experts weigh in on the economic impact
As economic observers analyze the response, questions remain about how Trump’s policies will affect the technology and business sectors.