If the biggest winner in the U.S. election was Trump, then the second biggest winner was Musk.
On November 6, with Trump announcing victory, the 2024 U.S. election officially came to an end.Musk, who "spent money and contributed" in this election, made the right bet.On Wednesday, Musk concept stock Tesla closed up 14.75% at $288.53, setting a new high in more than a year.
Riding on the soaring stock price of Tesla, Musk's worth soared by US$20.9 billion overnight, and his total wealth increased to nearly US$286 billion, firmly establishing his position as the richest man in the world.
For the billionaire, soaring stock prices and increased personal wealth are just appetizers.In Trump's victory speech, the new U.S. president mentioned Musk as many as 11 times, calling him "a genius we need to protect carefully."When talking about the successful recycling of the starship caught by chopsticks, Trump vividly said,"It's like having your baby in your arms.""Only Musk can do such a thing," and his words were full of "doting".It is foreseeable that Trump will definitely support this teammate who works side by side.
So, let's have another game. What other benefits will be welcome to Musk after Trump comes to power?
First of all, it has become a consensus on Wall Street that Tesla will continue to drive wildly.
Although Trump's coming to power, who intends to support traditional energy, is not good for the entire electric vehicle industry, Tesla's share price will not be affected.Analysts said Trump's victory will help speed up regulatory approval of Tesla's autonomous driving technology.On Wednesday, CFRA Research senior analyst Garrett Nelson raised Tesla's price target to $375 from $265, meaning the stock still has more than 30% room to rise.
Other electric vehicle stocks are not so lucky.Rivian and Nikola, for example, fell more than 8% and nearly 2% respectively on Wednesday, indicating that investors are constantly flowing out of non-Tesla electric vehicle tracks.
Second, Musk will have more say in politics.
Before being elected, Trump promised that if elected, he would appoint Musk as chairman of the Government Efficiency Committee, whose responsibilities are to supervise the government budget and improve the efficiency of the use of government funds.After learning of the "appointment," Musk said he could cut the $6.75 trillion federal budget by at least $2 trillion.
The United States 'debt problem is a cliché.According to data from the U.S. Treasury Department, as of July 26, 2024, the size of the U.S. federal government debt has exceeded the US$35 trillion mark, and these huge amounts of debt are distributed to every American, equivalent to nearly US$104,000 per person in debt.Many economists believe that the U.S. debt is unsustainable.After Trump takes office, how to effectively control and manage the budget will be one of the important challenges facing the new government.
In this regard, Musk has already warned,"Your money has been wasted, and the government efficiency department will solve this problem," Musk said,"We will stop the government from pestering you and emptying your wallets.”
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Finally, regulatory restrictions faced by Musk's industries could be repealed.
The most typical example may be SpaceX. In the past four years, the company has been subject to liquid-style reviews many times due to its disagreement with the Democratic government: first, the Department of Justice sued SpaceX for discrimination in the recruitment process, then the Aviation Administration imposed a fine on SpaceX for violating regulations, and finally, the Federal Communications Commission directly cancelled the subsidy to Star Chain.It can be said that in the past four years, although SpaceX has made many amazing achievements, from a micro perspective, the company's life has not been easy.
But now, the situation will be completely reversed. After the Republican government takes office, it may not only lift regulatory restrictions on SpaceX, but may even help SpaceX develop.A typical hint was that Trump spent a lot of space in his victory speech emphasizing Musk's achievements at SpaceX, and praised SpaceX rocket launch and "Starlink"'s performance in providing Internet in the disaster area.
On the same day, Musk also responded on X,"The future will be beautiful," accompanied by a photo of the rocket launch.
