WASHINGTON — WASHINGTON (AP) — Elon Musk, clad in tuxedo and black tie, took the stage at President-elect Donald Trump’s Mar-a-Lago resort shortly after the election with all of the swagger of the profitable candidate himself.
“The general public has given us a mandate that would not be extra clear, the clearest mandate. The folks have spoken. The folks need change,” Musk informed the viewers of Trump’s greatest donors, marketing campaign leaders and appointment seekers. “We’re going to shake issues up. It will be a revolution.”
Musk’s attachment to Trump has created an alliance between America’s strongest politician and its richest businessman — and roughly the identical percentages of People have favorable views of every, in keeping with a brand new ballot from the AP-NORC Heart for Public Affairs Analysis.
Consultants are break up on whether or not that overlap in public opinion is an effective or unhealthy factor for Musk’s companies or for Trump’s politics. Nevertheless it may have far-reaching results in each realms.
Musk, whose internet value tops $400 billion, oversees six companies whereas persevering with to work carefully with Trump: electrical automotive producer Tesla, the X social media platform, house expertise firm SpaceX, mind hyperlink firm Neuralink, the startup xAI and tunneling operator The Boring Co.
“Though there’s a destructive impression, when it comes to probably alienating a few of their prospects which may not be followers of Trump, the advantages far outweigh any negatives relating to having a right-hand seat subsequent to Trump within the White Home,” stated Dan Ives, an analyst at Wedbush Securities.
Ross Gerber, CEO of Gerber Kawasaki Wealth and Funding Administration, recognized himself as an investor in Musk’s Tesla and a driver of Tesla’s new Cybertruck, the futuristic pickup that has gotten enormous quantities of consideration but in addition been the topic of security considerations and multiple recalls.
“Having your CEO not working at your organization and dealing on the job of getting to fireside authorities staff … as a shareholder, I’m paying somebody to not work for my firm,” he stated. “As a Cybertruck proprietor with self-driving that sucks and doesn’t work, I’m like, ‘Dude, this isn’t truthful.’”
However regardless of his skepticism, Gerber stated he received’t cease investing in Musk’s companies.
“I’ve made some huge cash with Elon,” he stated. “I’m not within the enterprise of investing primarily based on the recognition of CEOs.”
Musk doesn’t seem to offer Trump a lot increase with individuals who don’t again the incoming president.
He’s no extra standard with the U.S. public than the president-elect himself, and considered unfavorably by about half of People, in keeping with the AP-NORC ballot.
About 4 in 10 People have a considerably or very favorable view of the world’s richest individual, similar to the proportion who view Trump positively. Likewise, about half of adults have a considerably or very unfavorable view of Musk — once more, much like Trump.
As a substitute, stated one political strategist, Musk is the perfect validator for somebody who cultivates a picture of success in enterprise and who has stocked his Cupboard and key adviser roles with billionaires.
“Trump has at all times pushed this narrative that he’s a profitable developer and a really profitable businessman. I feel having Musk with him is his double-down on this enterprise success, good-for-the-economy, good-for-everybody-making cash type of persona,” stated Christine Matthews, a nationwide political pollster who has labored for Republicans. “On this case, Musk is seen as this profitable, progressive, tech entrepreneur, frontier-buster.”
Musk additionally has at his disposal X, the social media platform previously often known as Twitter that he purchased and was a megaphone for conservative concepts. And having spent an estimated $250 million to assist Trump within the election, Musk has signaled he’s keen to again Republican major challenges to GOP members within the Home and Senate in search of reelection in 2026 who waver on Trump’s appointments and agenda.
Trump has tasked him with leading a group to scale back the dimensions of the federal authorities and cut back the rulemaking authority of the federal paperwork.
Tesla stands to make vital good points underneath a Trump administration with the specter of diminished subsidies for different vitality and electrical autos doing essentially the most hurt to smaller rivals. Trump’s plans for in depth tariffs on Chinese language imports make it much less doubtless that Chinese language EVs might be bought in bulk within the U.S. anytime quickly.
Some analysts consider the billionaire’s function will create a really pleasant panorama for Tesla over the approaching years. Ives, the analyst at Wedbush Securities, stated Musk’s relationship with Trump may “revolutionize the Tesla story, particularly round robotics, AI and autonomous.”
Traders, he stated, are betting on Musk and see his political ascent as a “champagne second.” In contrast to Gerber, Ives believes that ending the EV credit score and taking subsidies from Detroit carmakers, Hyundai and different corporations will create solely alternative for Tesla.
“I feel Wall Avenue is beginning to absolutely digest the potential advantages from Musk,” Ives stated.
Tesla shares closed at a document excessive on Tuesday, with a lot of the corporate’s current good points coming after Trump’s victory. However Gerber feels that leap is as a result of traders consider Tesla may have a bonus relating to autonomous driving as a result of Trump may grant the corporate a nationwide autonomy license.
Nonetheless, he thinks Tesla would be the “huge loser” of Musk’s companies due to Trump’s promise to finish the EV tax credit score for carmakers.
“For Tesla, I don’t see a ton of profit from this,” he stated. “Elon is deceptive folks to say it hurts the competitors if the credit score goes away.”
Musk’s different corporations — together with his synthetic intelligence firm, xAI — may reap the advantages of working inside the Trump administration, he stated.
“AI is a transformative funding that can create plenty of regulatory and governmental points, particularly round security and data,” Gerber stated. “There’s a whole lot of profit, from an AI perspective, to having Elon the place he’s.”
The connection between the 2 males has no parallel in U.S. historical past, stated David Nasaw, biographer of American enterprise tycoons Andrew Carnegie and William Randolph Hearst. He famous that Musk, to a stage not like different tycoons, has relied on subsidies and favorable authorities selections for his success from Tesla to SpaceX.
“He’s a unicorn,” Nasaw stated of Musk.
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Beaumont reported from Des Moines, Iowa, and Parvini reported from Los Angeles.
