One of the key factors that Tesla continues to benefit from under President Donald Trump is the tariff policy on electric vehicles manufactured in China. If this becomes a reality, Tesla will have a big advantage when competing with other electric car companies in the global market.
This is one of the reasons Musk has been able to receive huge financial and political support from the Trump administration.
In addition to Tesla, Musk also owns SpaceX, an aerospace company with which he has secured numerous contracts with the US government, including recent contracts worth hundreds of millions of dollars from the US Space Force. In addition to SpaceX, Musk owns a number of other companies such as xAI (an artificial intelligence startup) and Neuralink (a brain implant company), both of which are growing strongly and will likely continue to attract investment under Mr. Trump.
Last month alone, the company secured more than $700 million in contracts from the U.S. Space Force. According to a New York Times analysis, SpaceX and Tesla have received at least $15.4 billion in government contracts over the past decade. With Trump as president, it’s safe to assume that those contracts will continue or increase, especially in the defense and space sectors.
Another important factor is that Mr Trump could create a more favorable environment for Musk's companies, helping to reduce administrative barriers.
Richard Pierce, a law professor at George Washington University, said Musk would “certainly” receive significant support from government agencies, given his close relationship with the new president. Federal regulators and prosecutors would likely have an easier time handling requests from Musk’s companies under Trump’s leadership.
In addition to financial benefits and government contracts, Musk is also leveraging the X platform to increase his soft power in the political world.
X, under Musk’s ownership, has become a key media vehicle for Trump’s campaign. Musk’s X account, with more than 200 million followers, has helped him amplify pro-Trump messages and right-wing views.
Under Musk’s leadership, X has shifted to the right, resurrecting the accounts of controversial figures like Alex Jones and encouraging Trump supporters to engage in political discussions.
Bruce Daisley, Twitter's former European CEO, said Musk had created a "right-wing space" on X where Trump's ideas could flourish. This helped make Musk one of the most influential people in the US political environment.
At the end of Tuesday night's X Spaces show, billionaire Musk said his super PAC is "preparing for the midterms and any runoff elections, as well as looking at district attorney level elections."
Experts say that Elon Musk, with the wealth and power he possesses, will continue to take advantage of President Donald Trump's victory to consolidate and expand his influence.
From government contracts, to the rise of Tesla stock, to the soft power of the X platform, Musk is building a powerful force in both politics and business. Under President Trump, Elon Musk's star will likely shine brighter and stronger, continuing to be an important figure in future US policy decisions.
