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Best deal ever! Investment returned 69.900%, increasing Elon Musk's fortune by $70 billion 

Published 12/11/2024 às 09:07
Updated 13/11/2024 às 18:02
Elon Musk's fortune
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Historic investment yields 69.900% and adds $70 billion to Elon Musk's fortune

In recent times, the increase in Elon Musk's fortune has been the subject of much debate and speculation. Since Donald Trump's recent victory, the businessman's wealth has risen by around $70 billion, a staggering increase driven by the appreciation of shares in Tesla. But what led to such a significant increase, and what are the implications of this growth for Musk, his business and even for American politics? Let's take a look.

The impact of Trump's victory on Tesla shares

With Donald Trump’s return to the presidency, many companies have seen their stocks rise, and Tesla is no exception. Just four days after the election, Tesla’s stock rose by about 39%, bringing the company’s market value to over $1 trillion. This growth has had a direct impact on Musk’s net worth, which now stands at around $320 billion, putting him well ahead of other billionaires such as Oracle founder Larry Ellison.

It’s interesting to note that Tesla’s stock rally isn’t just a matter of the market. Trump’s presidency is associated with deregulation policies, which could benefit Musk and his businesses, which operate in areas that involve strict regulations, such as the auto industry, defense and even artificial intelligence.

Elon Musk's strategy to influence the political landscape

For Musk, Trump’s election was not just a political victory, but also a strategic opportunity. He has invested millions to support Trump’s campaign and ensure a business-friendly administration. Musk has even funded voter registration campaigns in key states and even led rallies in support of the former president.

Additionally, Musk used the X, the social media platform formerly known as Twitter and acquired by him in 2022, to promote Trump and his ideas. This included everything from spreading information favorable to the candidate to sharing content that reinforced his views on issues such as immigration and national security.

This active role by Musk raises questions about the use of economic power and social media to influence the political landscape and even shape the future of a country.

Experts suggest that Elon Musk invested $100 million in Donald Trump's campaign, resulting in an immediate return of $70 billion. This strategic move would have generated a staggering profit of 69.900% for the billionaire.

The relationship between politics and business in Elon Musk's fortune

Musk’s various companies — Tesla, SpaceX, xAI, Neuralink and The Boring Company — operate in highly regulated industries and frequently face federal investigations. With Trump back in office, Musk can expect less regulatory interference and a more favorable environment to expand his business.

By removing regulatory barriers, Musk would have more freedom to innovate and expand, especially in the field of artificial intelligence with xAI. For example, a Trump administration may be less stringent on environmental regulations, which would directly impact Tesla and other tech companies that have to deal with environmental regulations. With reduced regulatory pressure, Musk could speed up product launches, explore new technologies, and even lower operating costs.

Betting on the future: SpaceX and the new administration

Another point of concern is the impact on SpaceX. During the first Trump administration, SpaceX was one of the largest beneficiaries of contracts with the US government, especially when it came to space launches and defense projects. With Trump back in office, SpaceX could benefit from this relationship again.

Additionally, Musk would have an ally at the Federal Communications Commission (FCC), with free-enterprise advocate Brendan Carr a possible choice to lead the agency. This could help Musk expand X and face fewer constraints on the operation of his companies.

The challenges and risks of this strategic bet

While this political alliance could bring many benefits, it also carries risks. Musk’s reliance on a specific administration to ensure a favorable business environment could leave his companies vulnerable to future changes in government. In a scenario where a new government opposed to these policies takes power, Musk could once again face regulatory hurdles, which could impact his business and fortune.

A practical example would be the Senate’s control over appointments to key government positions. Musk even ran a poll on X to find out who his followers think should be Senate Majority Leader, publicly supporting Rick Scott, a Republican senator from Florida, for that position. This direct involvement shows Musk’s interest in ensuring that the Senate also aligns with his vision for a more flexible regulatory environment.

Musk and the growth of the cryptocurrency sector

Another sector that has seen a significant increase is cryptocurrencies. Since the election, the value of bitcoin has risen to over $88.000, and Coinbase, the leading cryptocurrency exchange, has seen its shares rise by 67%. Musk, who has previously invested in bitcoin, also has an interest in the rise of cryptocurrencies, as Tesla holds a significant stash of digital assets.

Trump's victory could mean a softer stance on the cryptocurrency sector, benefiting both Musk and other companies operating in this market.

Elon Musk is an example of how entrepreneurs can use their influence to shape the political landscape and advance their businesses. His support for Trump and deregulation shows a calculated strategy to protect and expand his empire, from Tesla and SpaceX to X and xAI.

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Ivette Fenton
Ivette Fenton
12/11/2024 12:49

BEAUTIFUL TESLA, I LOVED IT, SIR, AND YOU DESERVE IT SO MUCH.

claudioitaliamedicina@gmail.com
claudioitaliamedicina@gmail.com
12/11/2024 15:57

Billionaire saw Donald Trump as a window of opportunity

Dr. Lemos
Dr. Lemos
13/11/2024 09:35

And when Globo uses its media to promote the nine fingers aka LULA? IS IT POSSIBLE?

Cristiane
Cristiane
13/11/2024 15:22

He deserves it, it's not for nothing that he's a billionaire and he didn't need to rob the poor, no, he Trump and Bolsonaro are going to take away this **** system that sucks the poor
And especially the media that gives fake news, get ready
Now it's time for good to turn things around

Fabio Lucas Carvalho

Journalist specializing in a wide range of topics, such as cars, technology, politics, shipbuilding, geopolitics, renewable energy and economics. I have been working since 2015 with prominent publications in major news portals. My degree in Information Technology Management from Faculdade de Petrolina (Facape) adds a unique technical perspective to my analyses and reports. With over 10 thousand articles published in renowned media outlets, I always seek to bring detailed information and relevant insights to the reader. For story suggestions or any questions, please contact me by email at flclucas@hotmail.com.

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