Elon Musk’s political gamble is paying off.
Since endorsing Donald Trump in July 2024, Musk’s net worth has grown by $170 billion, reaching $419 billion as the world’s richest person according to Forbes.
While Tesla’s stock has dropped 20% since Trump returned to office, it remains up 35% since Musk’s endorsement.
SpaceX’s valuation has nearly doubled to $350 billion. His AI and social media conglomerate, xAI Holdings, recently merged in a $113 billion deal, tripling in value over the past year.
Musk, who spent $290 million to support Trump’s 2024 campaign, the largest individual donor, said at the Qatar Economic Forum this week that he’ll scale back political donations. “I think I’ve done enough,” he said.
In return, Musk is seeing reduced regulatory pressure and increased federal support. Multiple investigations into his companies have stalled or been dropped.
The Justice Department ended a discrimination lawsuit against SpaceX. The Labor Department backed off an inquiry into Tesla’s hiring practices. The National Labor Relations Board abandoned a wrongful dismissal case involving SpaceX employees.
Some context
SpaceX is now a front-runner for Trump’s proposed $175 billion “Golden Dome” missile defense project. It already holds $16 billion in federal contracts, including $6 billion from the Pentagon in April.
Starlink, a key SpaceX unit, is receiving quiet support from the U.S. State Department. Diplomats have reportedly pressured foreign governments to expedite regulatory approvals for the satellite internet service, especially in Africa and Asia.
At home, the FAA is testing Starlink for possible use in a nationwide aviation safety upgrade. While the agency says no decisions have been made, Musk’s satellite network could become a central player in modernizing U.S. air traffic communications.
Still, not all signs point up. Tesla’s sales are down globally, partly due to backlash from Musk’s involvement in DOGE, the Department of Government Efficiency, which aims to dismantle federal agencies. Tariffs on Chinese imports have raised Tesla’s supply chain costs. And a majority of Americans, 58%, according to a recent Reuters/Ipsos poll, hold an unfavorable view of Musk.
Some reports in Congress warn that Musk’s influence poses conflicts of interest. A House Democratic report argued Musk is now shaping the very government that regulates his businesses.
Trump and Musk deny wrongdoing. “If there’s conflict, then we won’t let him get near it,” Trump said in February. Musk insists he has no role in his companies’ government dealings.
Despite public backlash and reputational damage, analysts say Musk’s ventures are thriving under Trump. “The federal regulatory spiderweb is clearing, Tesla’s AI and autonomous opportunity alone is worth at least $1 trillion,” said Dan Ives of Wedbush Securities.
