Hours before Donald Trump’s return to the White House was made official, his greatest supporter was already inside the Oval Office.
Elon Musk, who has been a key supporter of Trump’s return to the presidency, was in his default wind-up mode as he used his X platform to post a superimposed photo of himself, holding a sink, inside the American seat of power.
“Let that sink in,” he wrote.
Let that sink in pic.twitter.com/XvYFtDrhRm
– Elon Musk (@elonmusk) November 6, 2024
“}}”/>
It was amateurish, but Musk’s contribution to Trump’s victory has been serious and will reap benefits for the richest person in the world.
Trump acknowledged Musk in his victory speech on Wednesday, even if it required the audience to ask for it, and indicated that Musk will be well treated under his administration.
“We have to protect our geniuses, we don’t have that many,” Trump said.
Musk, who is worth $264bn (£205bn), can easily afford the more than $100m he has donated to his fellow billionaire’s campaign through his Super Pac.
There were immediate signs of a return on that investment Wednesday morning. Shares of Tesla, the electric car maker he leads as CEO and in which he owns a 13% stake, rose about 15% in early trading on Wall Street, implying a wealth gain of $15 billion. dollars.
There could be more to come. Dan Ives, an analyst at US financial firm Wedbush Securities, said a Trump victory could add up to $200 billion to Tesla’s value, increasing Musk’s wealth by about $26 billion in total, including the increase in Wednesday.
“The biggest positive of a Trump victory would be for Tesla and Musk,” Ives wrote in a note to investors, citing possible benefits such as the possibility of Trump imposing tariffs – or import taxes – on electric vehicles made in China.
Musk also owns SpaceX, a rocket company that has a number of contracts with the US government. Last month alone it secured contracts worth more than $700 million from the United States Space Force. SpaceX and Tesla have received at least $15.4 billion in government contracts over the past decade, according to a recent New York Times analysis.
Since Musk received Space Force contracts under the Biden administration, the expectation is that the flow of federal deals will not slow under Trump. Richard Pierce, a law professor at George Washington University and a specialist in government regulation, said he was “confident” Musk’s companies would benefit from more contracts.
Trump’s victory has also underscored the soft power of Musk’s ownership of social media platform Twitter (the “sink photo” is from when Musk walked into the Twitter office carrying the aforementioned sink.)
X has experienced a shift to the right under Musk’s ownership and has contributed to Trump’s campaign. Musk has reinstated incendiary right-wing figures such as conspiracy theorist Alex Jones.
Musk’s control over the network has allowed him to amplify his own pro-Trump messages on the platform. His is the largest account, with more than 200 million followers. He’s been very active during the campaign, sometimes posting more than 100 times a day with huge engagement: the “sinkhole” post alone has been viewed 50 million times. X has been a key player in a media ecosystem that has supported Trump, including podcasters like Joe Rogan.
Bruce Daisley, Twitter’s former head of European operations, said that during Musk’s ownership of X, the billionaire had refused to compromise for short-term financial gain.
“By introducing a more aggressive algorithm, you have definitely changed a space used by commentators, journalists and politicians into a place that favors right-wing voices, including yours. It has had an impact on the things that people consume,” Daisley said.
Musk is also likely to have a role in the Trump administration. In September, Trump said he would form a government efficiency commission, headed by Musk. A full-time government job would require Musk to trust his companies, but a part-time government efficiency role would not require such action.
“In theory, Musk can’t take a full-time government job without trusting his companies,” said Brian Quinn, a professor at Boston College Law School. “However, you can participate as a part-time member of a presidential commission, etc. without doing so.”
after newsletter promotion
Musk has already indicated that a government efficiency body would help SpaceX, stating in
He added in a post on X: “The Department of Government Efficiency is the only path to extending life beyond Earth.”
Federal regulations may be a problem for Musk. For example, it has made clear its frustration with the Federal Aviation Authority, warning in September, after another confrontation with it, that the company “will file a lawsuit against the FAA for regulatory overreach.”
Musk’s other companies include artificial intelligence startup xAI, which is reportedly headed for a $40 billion valuation, and brain implant company Neuralink, which is reportedly worth $8 billion.
The broader US tech sector is also expected to benefit in terms of regulation. There is a widespread expectation that Lina Khan, head of the Federal Trade Commission and an advocate of a tough approach toward major tech companies, will be replaced.
“It’s all positive for Musk and the U.S. tech sector,” said Neil Wilson, chief analyst at brokerage Finalto.
Musk is already a figure of global fame and power, but Trump underlined that on Wednesday.
“We have a new star, a star is born: Elon.”
That star is likely to become brighter and more powerful under the Trump administration.
Read more of The Guardian’s 2024 US election coverage