Elon Musk's support for Donald Trump's campaign has garnered him significant political influence. Musk utilized his wealth and public image effectively, with his political action committee, "America PAC," continuing its operations to prepare for future elections. Musk plans to play a major role in upcoming elections, including the House, Senate, and local elections.
Market observers are curious about Musk's ability to convert his support for Trump into tangible policy influence. Questions arise about whether Musk could persuade Trump to avoid trade conflicts or to push for national approval of autonomous vehicles.
Republican strategists note that while wealthy donors often shape political landscapes with financial power, Musk stands out with his control over a major social media platform and his intent to engage in politics. His influence as a billionaire and owner of the online political platform X makes him a notable figure in the Republican sphere.
Despite some skepticism about Musk's long-term political involvement, certain strategists eagerly anticipate his contributions to Trump's administration and the MAGA movement. However, former congressional candidate Blake Masters doubts Musk will become a predictable political player, suggesting that Musk tailors his involvement to specific situations.
Musk's backing has been favorable for him, as Wedbush Securities analysts highlight that Trump's potential policies might unexpectedly benefit Tesla (TSLA, Financial). Although Trump's administration might withdraw electric vehicle incentives, Tesla's rivals rely more heavily on these incentives. Recently, Tesla's stock surged by 14.75%.
Moreover, Musk's companies are already major federal contractors, with the potential to secure more lucrative contracts under Trump's leadership. Tesla's push for fully autonomous taxis without steering wheels or pedals also hinges on federal approval.
Musk's recent ventures have repeatedly yielded success, from campaigning for Trump's presidency to acquiring Twitter, and negotiating executive compensation and government contracts for his businesses.
