Winning Bizness Desk
Mumbai. Following the recent U.S. presidential election win by Republican candidate and former President Donald Trump, Elon Musk, one of Trump’s strongest supporters, saw a significant increase in his net worth. Musk’s wealth reportedly surged by approximately ₹2.27 lakh crore (about $26.5 billion) over just four days, rising from ₹22.31 lakh crore on November 5, 2024, to ₹24.58 lakh crore by November 7. As the owner of Tesla, SpaceX, and Starlink, Musk was one of the primary backers of Trump in the 2024 election.
Tesla's stock rose by 22% in just four days
Reports indicate that Musk invested $119 billion (around ₹10 lakh crore) into Trump’s campaign and promoted him on his social media platform, X, formerly known as Twitter. This substantial support helped Musk capitalize on the momentum surrounding the election results, as it had a positive impact on his companies, particularly Tesla. According to the Bloomberg Billionaires Index, Musk’s net worth climbed due to an increase in Tesla’s stock value following the election outcome. The company’s stock rose by 22% in just four days. On November 4, Tesla shares closed at $242.84. By November 8, they had surged to $296.95, reflecting a 21.92% rise. The stock saw notable increases each day after the election, with a 3% gain on November 8 alone. Musk's recent financial gains have solidified his position as the world’s wealthiest person. As of November 7, Forbes’ Real-Time Billionaire list reported Musk’s net worth at ₹24.58 lakh crore, though it saw a slight
What is the reason behind this surge ?
* Market Optimism and Business-Friendly Policies: Investors generally anticipate that Trump’s administration will favor policies that support Musk's business growth and deregulation. These policies may be seen as beneficial to large corporations like Tesla, which operates in complex industries that can be affected by government regulations.
* Tax Policy Expectations: Trump's administration is expected to maintain or introduce corporate-friendly tax measures, which could improve profit margins for high-revenue companies like Tesla. This anticipation drives up stock prices as investors foresee potential increases in company earnings.
* Energy and Technology Sector Boost: Musk’s companies, such as Tesla and SpaceX, stand to benefit from anticipated policies in favor of American technology and energy independence. This sentiment encourages investments in Tesla, pushing up its stock price and Musk’s net worth as the largest Tesla shareholder.
* Investor Confidence in Musk’s Alignment with Trump: Musk's open support for Trump during the election campaign may have strengthened investor confidence, believing his companies could receive favorable treatment or contracts under the new administration.
