After last week’s presidential election that saw former President Donald Trump return to power, one of his closest allies tech mogul Elon Musk experienced a sharp spike in his net worth as Tesla stocks soared at what some experts are calling “unstoppable” rates.
Investors are continuing to bet big on Tesla and stocks attached to the South African’s other companies after Trump won the election, and that could result in massive windfalls for the electric vehicle maker.
The betters are reportedly counting on stocks taking off during a Trump presidency, citing a close relationship between the administration and the success of the tech mogul’s company.
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During the campaign cycle this year, Musk reportedly contributed at least $119 million to a pro-Trump political action group, federal records indicate, and it now appears that Musk’s investment resulted in a large payday for the SpaceX owner.
According to Forbes, Tesla’s shares jumped over 9% on Monday, extending a winning streak that’s now five sessions long, beginning after the presidential election on Nov. 5. All of the companies stocks together surged over 40%, it was reported, and created an additional $300 billion in market capitalization, FirstPost reported.
Tesla stocks altogether passed $1 trillion in market value for the first time in two years, it was reported, and, if gains continue, stocks could rise to $348.30, pushing the company’s value to nearly $87 billion.
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As a result of the stock increases, Musk’s own net worth rose significantly, placing him at over $320 billion. That’s $90 billion ahead of Oracle founder Larry Ellison, the world’s second-richest person.
Musk has dedicated much of his time, energy and large portions of his wealth to a campaign designed to register swing-state voters who lean to the right as he did everything in his power to elect Trump.
He authorized controversial $1 million giveaways to registered voters who signed one of his America PAC petitions, then faced a lawsuit for that that accused him of running an illegal lottery in Pennsylvania. He also used his social media platform X, formerly known as Twitter, to promote support for Trump users became frustrated after requesting that ads about the former president be taken down using a broken feature on the website that didn’t do what it promised to do.
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Musk had a vested interest in electing Trump given that Teslas, SpaceX rockets and his Neuralink brain chips all depend heavily on government regulation, subsidies or policies for him to be able to manufacture and sell them. Trump supports many of those policies that would help Musk.
After the election, Musk was selected alongside biotechnology entrepreneur Vivek Ramaswamy to lead the new Department of Government Efficiency under Trump’s administration.
But the tech mogul’s payday might be coming to an end, with the stock price spikes possibly being foreshadowing for a drop to come. Tesla’s 14-day relative strength index, which is a gauge of how bullish or bearish price momentum is, meaning whether it could rise or fall, closed at 81. FirstPost reported that anything above a 70 is considered foreshadowing for a drop that could soon be in store.
