How Elon Musk's ‘Twilight Zone jigsaw puzzle' Twitter purchase got him a Trump job - and richer
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Elon Musk, the world's wealthiest individual, is set to assume an advisory position aimed at aiding President-elect Donald Trump in enhancing governmental efficiency. This role adds to the growing list of responsibilities Musk manages as a CEO and business leader.
Musk's portfolio extends across various ventures, including Tesla, SpaceX, Neuralink, xAI, and the Boring Company. His new advisory role with Trump's administration becomes another task that diverts his focus from his primary business operations.
Recently, Tesla has encountered challenges in maintaining its lead in the electric vehicle market, facing sales slowdowns due to stiff competition and ongoing federal investigations related to its self-driving technology. Despite these issues, Tesla's stock has risen by 31% post-Election Day, fueled by investor optimism about Musk's potential influence to promote deregulation, benefiting technologies crucial to Tesla.
Analysts suggest that Musk's governmental involvement could bring advantages, such as easing China tariffs and fast-tracking autonomous driving regulations. Musk, as Tesla's primary shareholder, has significantly benefited financially from the stock surge, increasing his wealth considerably.
While Trump has expressed a negative stance on electric vehicles, this might inadvertently benefit Tesla by reducing market competition that depends heavily on tax credits. Any federal investigations on Tesla might also diminish under Trump's administration.
SpaceX, meanwhile, continues to eclipse competitors, bolstered by a potential deregulation era. Despite challenges, the company has sustained high valuations, showcasing innovative advancements, such as catching rocket boosters with precision.
X, however, has struggled, losing significant value, attributed to advertisers withdrawing from a platform witnessing an uptick in controversial content. Musk's active engagement on X aligns with his increasingly right-wing perspectives.
The $44 billion acquisition of Twitter, now X, in 2022, marked a shift for Musk, positioning him deeper within the political sphere and enhancing his stature. Tesla's market valuation has soared past $1 trillion, underscoring its status on the stock market.
There's anticipation surrounding Musk's evolving journey, despite uncertainties about future dynamics with Trump. The relationship's continuity will hinge on their alignment, with Trump ultimately holding presidential authority.