With investors positioned in favor of new American presidentDonald Trump, the market is confident in the influence of the founder of Tesla and owner of
Trump promised the South African-born businessman during the election campaign to be the new “cost reduction secretary”which would give him the power to reduce the weight of civil servants in the country’s public administration. “He’s dying to do it,” Trump said in his final messages.
And this very night, in the speech in which Trump proclaimed his victorythe Republican dedicated a long thank you to Musk, who, before the speech, accompanied him to the Mar-a-Lago club, where he resides, to see the election results.
The Republican exalted the Musk’s visits to Pennsylvania in recent weeksa state that gave him a big boost this evening, and highlighted the help the businessman is providing with his Starlink satellites to, for example, restore internet services in areas recently hit by a hurricane like North Carolina, another of the states in which Harris won.
“The future will be fantastic,” Musk wrote. on the networks with the image of the company’s Starship rocket taking off from a launch tower.
However, the trade policy announced by Trump during the campaign, which promotes the imposition of higher customs duties on product imports clashes head-on with Musk’s interests. Tesla’s CEO said in a podcast last Monday that he was not in favor of imposing large tariffs all at once, but rather preferred “measured and specific” taxes.
Musk invested $119 million (110.59 million euros) in the election campaign of the Republican through a super PAC (political action committee). Additionally, his proximity to Trump influenced, among other decisions, the election of JD Vance as vice president.
Influence in the White House
If he ultimately enters the next Republican administration, Musk would have the power to recalibrate federal laws to favor the activities of his two companies, Tesla and SpaceXwith several contracts in force with the American administration.
Over the past decade, both companies they would have received more than 15.4 billion dollars (14.312 million euros) of public moneyaccording to documents from the car manufacturer seen by Europa Press. According to the latest information from the ‘New York Times’, Tesla and SpaceX have opened 20 investigations into possible illegalities in their operations.
At the same time, ‘Rolling Stone’ magazine assures that Elon Musk could get a tax break ‘worth tens of billions of dollars’ over the next four years depending on the outcome of the income and billionaire tax cuts announced by Trump in recent months.
Specifically, the exemption would be granted by current regulations promulgated by the U.S. Office of Government Ethics that prohibit a government employee – possibly Musk if he enters the federal government – from participating “personally and substantially” in private affairs in which he has “a financial interest” and has the ability to force her to “give up the company’s interests.”
Therefore, and by applying a provision of the tax code inserted 35 years ago, the authorities can indefinitely save all capital gains taxes on such divestment, a potential profit for Musk of “billions of tens of millions of dollars.
Stock markets react positively
For now, Tesla Stock listed on the Frankfurt Stock Exchange (Germany) they climbed almost 14% at the start of the session on the stock market this Wednesday, to exceed 261 euros per share.
And futures on Wall Street are pointing to a similar rally when trading begins on the New York Stock Exchange.
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