PENNSYLVANIA

Musk's strong support for Trump during the 2024 presidential campaign has paid off, as evidenced by the nearly 15% surge in Tesla's stock price on Wednesday following Trump's victory. The company's market value jumped by around USD 120 billion, reflecting investors' belief that Musk will now have considerable sway with the new administration.

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Musk's influence is expected to be far-reaching, given his role as a major contractor with the U.S. Department of Defense through his ownership of the Starlink satellite broadband system, as well as his position as CEO of Tesla. The incoming Trump administration has already indicated that it will establish a government efficiency commission headed by Musk, further expanding the billionaire's reach.

The potential benefits for Musk extend beyond just Tesla. Trump's desire to reduce electric vehicle (EV) mandates may hurt Musk's competitors more than it hurts Tesla, given the company's significant sales volume. Additionally, Trump's promise to levy heavy tariffs on Chinese imports, particularly on EVs, could further shield Tesla from competition.

However, Musk's close ties to the Trump administration have raised concerns about potential conflicts of interest, as the billionaire has businesses spanning various industries, including auto, space, health, construction, and artificial intelligence. Experts warn that Musk may try to leverage his influence to reduce regulatory oversight of his businesses, which could have far-reaching consequences.

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The EV industry has acknowledged the importance of the next four years in ensuring the development and deployment of these technologies, and the Zero Emission Transportation Association, which includes Tesla, Rivian, Lucid, and battery maker LG, has stated its readiness to work with the Trump administration. However, the industry as a whole is bracing for a shift away from the pro-EV policies of the previous administration.

As Musk's influence grows, the future of Tesla and the broader automotive landscape in the United States remains uncertain. The industry will need to navigate a complex web of new trade policies, regulatory shifts, and evolving consumer preferences under the Trump presidency, with Musk poised to play a pivotal role in shaping these changes.