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Elon Musk, the ‘super genius’ behind Trump's election win, set to face pros and cons under 47th US president
Elon Musk, the owner of SpaceX, Tesla, and social networking platform X, has become the focus of attention with Donald Trump's US presidency.
Elon Musk, the owner of SpaceX, Tesla, and social networking platform X, has become the focus of attention with Donald Trump's US presidency. In his first victory address in Florida's Palm Beach, Trump expressed his gratitude to the richest man in the world. Hailing him as a “new star”, he acknowledged the overwhelming support he received from Musk throughout his campaign.
“Elon is a new star; a star is born,” he declared. He went him to label him as a “super genius”, adding that “We have to protect our geniuses.”
Musk contributed at least $119 million to Trump's campaign, making him a significant player in the US presidential election. In addition to providing financial support, Musk boosted pro-Trump rhetoric on X. He is now all set to become a part of Trump's cabinet under his second presidency.
Here are pros and cons for Musk following Trump's victory
Musk, the business magnate who contributed the most to the campaign of Trump, likely faces both advantages and disadvantages when it comes to his business empire under Trump's presidency.
In premarket trade on Wednesday, shares of Musk's electric vehicle manufacturer, Tesla (TSLA), surged 12% as investors bet that Trump's victory would also benefit Musk's largest public holding. This resulted in a more than $12 billion increase in the value of Tesla shares that Musk regulates, more than 10,000 times the $119 million he gave to Trump. However, Tesla still faces risks even with Trump's win.
A significant portion of Musk's enormous wealth can be attributed to the government assistance that his businesses, like SpaceX and Tesla, have gotten over the years. However, Musk's fortune will not be affected even if some government assistance for electric cars is now reduced or eliminated, which is probably the case under Trump's presidency. Tesla may profit in case government backing for EVs declines.
Also Read: ‘Deeply sorry’: Donald Trump's estranged niece Mary breaks silence on his historic win
Trump promised to end ‘Biden’s EV mandate’
Trump has publicly opposed electric cars, claiming they are too costly, have a short range, and will ruin American auto industry and jobs. He has pledged to remove what he calls “Biden's EV mandate” that offers government support for manufacturing and buying EVs.
According to several industry experts, Trump will terminate such programs. The availability of the tax credit might be significantly reduced if Trump orders the Treasury Department to alter the regulations governing when auto buyers are eligible for the benefit. Alternatively, Trump might enact legislation to completely abolish the credit if he gets complete control over Congress.
However, Musk has stated that he is not concerned about the tax credit's termination because Tesla views it as a benefit to established manufacturers' attempts to enter the EV market and increase competition.
“Take away the subsidies. It will only help Tesla,” Musk wrote on X in July.
Trump in favour of robotaxis?
Daniel Ives, tech analyst at Wedbush Securities, stated that Trump may approve Musk's vision of fully autonomous cars and a fleet of so-called “robotaxis” that can provide rides without a driver on board, CNN reported.
Trump to begin trade war with China?
Given the significance of its Shanghai factory to its worldwide sales and profitability, Ives stated that the greater issue facing Tesla following Trump's victory is the possibility of a resumption of the trade war with China.
"With Trump’s victory, “he’ll be much harsher on China, and then the negatives could outweigh the positives for Tesla,” Ives said. The Chinese market accounts for more than 40% of deliveries, he continued with a warning that Tesla would find itself in the middle of the conflict.
Trump's win to have an impact on SpaceX and X?
Musk's major tech firm, SpaceX, probably wouldn't have had many different ties with the federal government. Boeing, its main rival, is experiencing severe issues with the spaceship that NASA has leased to transport humans to and from the International Space Station.
Additionally, Musk's ownership of X has drawn a lot of criticism, particularly from Democrats, for disseminating false information.
However, even under Biden, the government has not taken any steps to stop it or hinder it, and the next Trump administration is probably not going to do anything either.
