How Trump’s ‘new star’ Elon Musk stands to benefit from his presidency

Just hours before it was officially confirmed that Donald Trump was back in the White House, his most loyal supporter had already taken up residence in the Oval Office.

Elon Musk, a strong supporter of Trump’s comeback to the presidency, was in his typical playful mood as he shared a photo on his X platform. The image showed him holding a sink while sitting in the Oval Office.

"Take a moment to really absorb that," he wrote.

Although it lacked polish, Musk's role in Trump's win was significant and is likely to bring rewards for the world's wealthiest individual.

In his victory speech on Wednesday, Trump recognized Musk, albeit after some encouragement from the crowd, and suggested that Musk would receive favorable treatment during his presidency.

"We need to safeguard our exceptional minds; we don't have many like them," remarked Trump.

Musk, with a net worth of $264 billion (£205 billion), can comfortably cover the over $100 million he has donated to his fellow billionaire's campaign through his Super PAC.

On Wednesday morning, there were quick indications that the investment was paying off. Tesla's stock, which the CEO oversees and in which he has a 13% ownership, saw an increase of around 15% during early trading on Wall Street. This surge translated to a wealth increase of $15 billion.

There may be additional developments ahead. Dan Ives, an analyst from the American financial company Wedbush Securities, stated that a Trump win could boost Tesla's value by as much as $200 billion, potentially raising Musk's total wealth by around $26 billion, factoring in Wednesday's gains.

According to Ives in a message to investors, the most significant advantage of a Trump victory would be for Tesla and Elon Musk. He pointed out potential benefits, including the chance that Trump might introduce tariffs on electric vehicles manufactured in China.

Musk is also the owner of SpaceX, a company that designs rockets and has numerous contracts with the US government. Just last month, it landed contracts totaling over $700 million with the US Space Force. A recent analysis by the New York Times found that SpaceX and Tesla have both garnered at least $15.4 billion in government contracts over the last ten years.

Since Musk has secured contracts with Space Force during Biden’s presidency, it's likely that federal contracts will continue under Trump as well. Richard Pierce, a law professor at George Washington University and an expert in government regulation, expressed his confidence that Musk's companies would see an increase in contracts.

Trump's win has highlighted Musk's influence over the social media site X, despite the fact that it seems improbable he will be able to recover the inflated $44 billion he paid for it in 2022, when it was still called Twitter. (The "sink" image shows Musk entering Twitter's office while carrying a basin.)

Under Musk's ownership, X has moved towards a more conservative direction and has influenced Trump's campaign. Musk has also brought back controversial rightwing personalities, including conspiracy theorist Alex Jones.

Musk's takeover of the platform has allowed him to boost his pro-Trump messages significantly. With the biggest account boasting over 200 million followers, he has been extremely active in the campaign, often sharing more than 100 posts daily, each attracting strong engagement; for instance, his "sink" post received 50 million views. X has played a crucial role in a media landscape that backs Trump, featuring prominent voices like podcaster Joe Rogan.

Bruce Daisley, who previously led Twitter's European operations, stated that during Elon Musk's tenure as the owner of X, the billionaire has consistently chosen not to make compromises for immediate financial benefits.

"By implementing a more forceful algorithm, he has certainly transformed an environment that features contributions from commentators, journalists, and politicians into one that promotes right-leaning perspectives, including his own. He has influenced what people are engaging with," Daisley noted.

Musk might also have a position in the Trump administration. Back in September, Trump mentioned his plan to create a commission aimed at improving government efficiency, and Musk is expected to head it. If Musk takes on a full-time government role, he would need to place his companies in a trust. However, if it’s only a part-time position focused on government efficiency, he wouldn't have to take that step.

"In principle, Musk is unable to hold a full-time position in the government unless he places his businesses in a trust," explained Brian Quinn, a professor at Boston College law school. "That said, he can still engage as a part-time member on a presidential commission or similar roles without needing to do that."

Musk has suggested that an organization focused on improving government efficiency could benefit SpaceX. He mentioned on X that his company could reach Mars faster "as long as it isn't hindered by red tape."

In a post on X, he stated, "The Department of Government Efficiency is the sole route to achieving life beyond our planet."

Federal rules can be a source of annoyance for Musk. For example, he has openly expressed his displeasure with the Federal Aviation Administration. After yet another conflict with the agency in September, he warned that the company plans to "sue the FAA for overstepping its boundaries."

Pierce from George Washington University mentioned that Musk might face less scrutiny from federal regulators and prosecutors.

"He pointed out that all federal regulators and prosecutors are employees of the president. This means the president can instruct them to take action or refrain from doing so, knowing that they could be dismissed if they don't comply."

Other companies associated with Musk include the AI startup xAI, which is rumored to have a projected valuation of $40 billion, and Neuralink, the brain implant company, which is said to be valued at around $8 billion.

Musk is already a well-known and influential figure worldwide, but Trump emphasized this point on Wednesday.

"We have a new shining talent: Elon has arrived."

That star is expected to shine more brightly and become stronger if Trump takes office again.

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