Elon Musk, CEO of Tesla (TSLA, Financial) and SpaceX, has seen a significant financial boost, with his net worth increasing by nearly $60 billion recently. This surge follows a remarkable 29% rise in Tesla's stock price, bringing Musk's total assets to approximately $330 billion. Investors are optimistic that Donald Trump's potential return to the White House could benefit Tesla, possibly through relaxed regulations for autonomous vehicles or reduced support for other electric vehicle manufacturers.
Though Tesla does not receive substantial subsidies from the federal government, it benefits from general policies like electric vehicle purchase tax credits. Additionally, Tesla earns significant revenue by selling Zero Emission Vehicle (ZEV) credits to other manufacturers, although these credits mainly come from states adhering to California's emissions standards. Analysts suggest that Trump might attempt to revoke California's regulatory powers again, which could negatively impact electric vehicle makers like Tesla.
Musk's SpaceX, a leading aerospace and defense company with an estimated valuation of $210 billion, has received around $20 billion from federal contracts since 2008. These include contracts to transport astronauts to the International Space Station (ISS) and provide lunar lander and defense launch services. SpaceX's close relationship with the federal government, compared to Musk's other ventures like X (formerly Twitter) and Neuralink, is noteworthy and could further benefit from Trump's leadership.
Concerns about possible conflicts of interest between Musk's business interests and presidential policies are anticipated to arise, with calls for Congressional oversight. Nonetheless, investor focus remains on the potential opportunities presented by a favorable government-business relationship.
