Elon Musk, CEO of Tesla (TSLA, Financial) and SpaceX, has expressed support for presidential influence over Federal Reserve policies. This endorsement came as President Trump won the election, with Musk showing alignment with Trump's economic stance, which could lead to tension between the Federal Reserve and the new administration. Musk's agreement was made apparent through a supportive emoji on a social media post by Utah Senator Mike Lee, who advocated for the Fed to operate under presidential direction.
Fed Chair Jerome Powell asserted his independence, stating that neither President Trump nor any political figure has the authority to dismiss him from his role. Despite recent inflation reports exceeding expectations, Powell indicated that the election results are unlikely to directly impact monetary policy.
Following Trump's victory, Tesla's stock surged by 8.19%, raising its market value above $1 trillion for the first time since 2022. This increase significantly boosted Musk's wealth, marking it over $300 billion for the first time in three years. Tesla's stock has climbed 29% in one week, enhancing Musk's fortune by $50 billion to approximately $313.7 billion.
Trump has publicly voiced support for actions beneficial to Musk's businesses, including revisiting the transition to electric vehicles and backing SpaceX's Mars mission. These developments have further catalyzed Tesla's market performance.
On November 11, Tesla-related stocks rallied strongly. Companies like Tuopu Group and Huagong Tech hit limit-up levels, with Tianqi Mould achieving a four-day surge. The boost followed Musk's announcement of improvements to the Optimus robot, addressing production bottlenecks. The humanoid robot industry involves listed companies such as Tuopu Group, Sanhua Intelligent Controls, and Qin Chuan Machine Tool.
