Tuesday, December 24

Elon Musk is $70 billion richer since Trump victory due to Tesla stock surge

Elon Musk spent

$44 billion

to buy Twitter, now known as X, and

at least $130 million

to help get

Donald Trump

elected president.

It’s a combination that’s paid off handsomely. Since Trump’s victory last week, Musk is about $70 billion richer on paper.

Most of Musk’s wealth is wrapped up in his holdings of

Tesla

, and in the four trading days since the election, the electric vehicle maker’s stock has soared by about 39%. That’s lifted the company’s market cap well past $1 trillion.

Musk’s net worth has swelled to $320 billion, according to

Forbes

, putting him close to $90 billion ahead of

Oracle

founder

Larry Ellison

, the world’s second-richest person. Ellison, a close friend of Musk’s and a former Tesla board member, is a longtime Republican donor who’s seen his own Trump bump, with Oracle’s 10% increase lifting his net worth by about $20 billion.

For Musk, getting Trump back into the White House became another full-time job. He funded a

swing-state operation

to register right-leaning voters, and he led rallies as a surrogate for his favored candidate. He started $1 million giveaways to registered voters who signed one of his America PAC petitions, and he faced

a lawsuit

over running an illegal lottery in Pennsylvania.

Musk also used X

,

the social media platform he acquired in 2022, to constantly tout his support for Trump while frequently spreading misinformation about his opponent,

Vice President Kamala Harris

, as well as topics like immigration and voter fraud.

Now, Musk is trying to make sure he cashes in on his investments.

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After the election last week, Musk briefly joined Trump’s phone call with Ukrainian President Volodymyr Zelenskyy,

NBC News

reported. Other outlets, including

The New York Times

and ABC, have reported that Musk has been weighing in on staffing decisions for the next administration, and he’s spent a lot of time since the election at Trump’s Mar-a-Lago resort in Florida. Brendan Carr, who is likely to be Trump’s choice to run the Federal Communications Commission, is seen as a longstanding Musk ally.

Musk ran a

straw poll

on X for his 200-million plus followers asking who should be Senate majority leader, and he’s personally

endorsed

Florida Republican Sen.

Rick Scott

for the position. He also reposted a comment from Trump about the need for the majority leader to support recess appointments for his nominees so they don’t need Senate confirmation.

“Without recess appointments, it will take two years or more to confirm the new administration!”

Musk wrote

.

Benefiting Musk’s empire

Musk has long sought to reduce regulatory authority so that he can eliminate impediments to his sprawling business empire, which includes Tesla and X, as well as defense contractor SpaceX, artificial intelligence startup xAI, brain computer interface company Neuralink and tunneling venture Boring Co.

Those companies are currently embroiled in a range of probes and lawsuits from federal agencies pertaining to matters including alleged securities law violations, workplace safety, labor and civil rights violations, violations of federal environmental laws, consumer fraud and vehicle safety defects.

Given the executive branch’s outsized control over federal regulatory bodies, Musk can look forward to regulators and intelligence agencies winding down some or all of the 19 known ongoing federal investigations and lawsuits against Tesla, SpaceX and X.

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“He’s got the golden touch right now and has the ear,” said Deepwater Asset Management’s Gene Munster, a longtime Tesla bull, in an interview with CNBC on Wednesday.

In addition to Tesla, SpaceX is also a “clear beneficiary” of a Trump presidency, Munster said. He added that xAI could be rewarded as the new administration considers AI regulations.

“I’m stretched to try to find out how this could play out negative for Elon,” Munster said.

Musk didn’t immediately respond to a request for comment.

More from CNBC

  • Mattel pulls thousands of ‘Wicked’ dolls off shelves after printing adult web address on packaging

  • Bitcoin tops $89,000 as crypto euphoria over Trump win shows no sign of waning

  • Dow jumps 300 points to close above 44,000 for the first time as Trump enthusiasm continues

Musk owns 411.06 million Tesla shares, as of the latest filings, and about 304 million performance-based options. In January, Judge Kathaleen McCormick of the Delaware Chancery Court

voided

Musk’s historic pay package from 2018 that included the options, calling it “unfathomable” in part because Musk controlled the board. Shareholders then voted in June to retroactively ratify the package. McCormick has said a final ruling on whether to restore Musk’s compensation will

come soon

.

Musk and Ellison aren’t the only two billionaire tech executives to see a post-election windfall.

Coinbase

CEO Brian Armstrong has

added

about $4.5 billion to his net worth since Trump’s victory. Coinbase shares soared 20% on Monday, bringing their gains since Tuesday to 67%.

The crypto exchange was a major contributor to pro-crypto candidates up and down the ballot, largely through a PAC called Fairshake. Most of its preferred candidates were victorious, setting the stage for the likelihood of a more

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favorable regulatory environment

for the industry.

That’s a win for Tesla as well. At the end of the third quarter, the company reported “digital assets” with a

fair value

of $729 million. Cryptocurrencies have rallied since the election, with bitcoin jumping about 29% to a record of over $88,000 on Monday.

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