The overwhelming victory of it Donald Trump on Kamala Harris in the race for President United States of America Elon Musk, the richest man in the world, is happy, who openly supported the Republicans in his desire and be awarded at least US$75 million.
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The magnate is not only happy about Trump’s return to the White House, but also about the skyrocketing value of Tesla, one of his main companies. Around noon on Wednesday, shares of the electric vehicle firm they rose 33% to US$285, accelerating the trend they showed in operations before the market opening.
According to Forbes, only with the movement of the stock in the early hours of the day Musk became US$15 billion richer and reached a net worth of US$283.6 billion.
“Tesla stock grows […] because of Elon Musk’s privileged relationship with Donald Trump” to which he is “deeply indebted,” said Andrea Tueni, a Saxobank market analyst, in remarks reported by the AFP agency.
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For investors, a golden door opens for Musk, who would have a cheap way to take advantage of the value of his companies in the middle The Trump administration promises to be tough on imports, taxing them with tariff increases of between 10% and 20%.
When the return of the Republicans to the presidency of the United States was known, the “honeymoon” with Musk was accelerated. “We have a new star. A new star is born: Elon (…) we are together tonight (…) He is a character, he is a special man. “He’s a genius,” Trump said in his speech to the crowd.
Tesla’s CEO is emerging as the next president’s “sweetheart”, whose government plan includes extending tax cuts which he did during his first term, in 2017, and extended them even to the middle class.
However, there are those who believe that Trump’s policy could have an overall negative impact on the interests of Tesla and Musk. According to Dan Ives, an analyst at Wedbush, a tougher policy with China would lead to retaliation from Beijing and a possible trade war.
The expert recalled that 40% of Tesla’s deliveries come from Asian power, where it has a gigafactory in Shanghai
Interview between Time.news Editor and Economic Expert Dr. Sarah Thompson
Time.news Editor: Good day, everyone! Welcome to this special interview segment where we discuss the latest economic developments following the recent U.S. presidential election. Joining us today is Dr. Sarah Thompson, an expert in economic trends and political influence on markets. Dr. Thompson, thank you for being with us.
Dr. Sarah Thompson: Thank you for having me! It’s always a pleasure to discuss the intersection of politics and economics.
Editor: Let’s dive right into it. Following Donald Trump’s major victory against Kamala Harris in the recent election, we’ve seen a significant surge in Tesla’s stock price. What do you think is driving this momentum in Tesla shares?
Dr. Thompson: Well, the relationship between Trump and Elon Musk is indeed a pivotal factor. Musk has openly supported Trump and his policies, which often favor the business environment that could be beneficial for companies like Tesla. A Trump presidency could, in theory, bring about deregulations that might positively impact the automotive sector, particularly electric vehicles.
Editor: That makes sense. In fact, reports indicate that Tesla shares rose by 33%, contributing to Musk adding an impressive $15 billion to his net worth in just one day. How significant is such a spike in stock value for the overall market?
Dr. Thompson: Spikes like this can have a ripple effect throughout the market. When a leading company like Tesla experiences such growth, it boosts investor confidence in the tech and automotive sectors, potentially leading to increased investment in those areas. Moreover, it also suggests a strong consumer interest in electric vehicles, which is crucial for long-term sustainability.
Editor: You mentioned investor confidence. With Musk’s growing wealth and his close association with Trump, do you think this creates a political economic environment where business decisions are influenced more by political ties than market fundamentals?
Dr. Thompson: That’s an astute observation. While political relationships can provide advantages, it’s essential for businesses to also rely on market fundamentals for sustainable growth. However, the intertwining of politics and economics can lead to volatility, especially if investors feel that political changes could impact regulations or market access. Musk’s ‘debt’ to Trump, as some analysts have put it, reinforces the idea that business success can sometimes hinge on political allegiances.
Editor: Very interesting. So, in your view, as we move forward with Trump’s presidency, should investors be wary of potential fluctuations that might arise due to these political dynamics?
Dr. Thompson: Absolutely. Investors should be cautious and stay informed about political decisions that could affect economic policies. Historically, stock market reactions to political landscapes can be unpredictable; hence, it is important to keep an eye on fiscal policies, trade agreements, and regulatory changes that might arise from the new administration.
Editor: Thank you, Dr. Thompson, for your insights. It seems the story of Trump’s return is not just a political narrative but also a critical economic one.
Dr. Thompson: Yes, indeed. The relationship between politics and economics is complex, and understanding it is key for navigating the future.
Editor: We appreciate your time and expertise. It will be fascinating to see how this all unfolds in the coming months. Thank you to our audience for tuning in as well. We’ll keep you updated on the latest trends and developments!