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 might not be extra clear, the clearest mandate. The individuals have spoken. The individuals need change,” Musk advised the viewers of Trump’s greatest donors, marketing campaign leaders and appointment seekers. “We’re going to shake issues up. It’ll 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 Individuals have favorable views of every, in keeping with a brand new ballot from the AP-NORC Heart for Public Affairs Analysis.
Specialists are break up on whether or not that overlap in public opinion is an efficient or dangerous factor for Musk’s companies or for Trump’s politics. But it surely may have far-reaching results in each realms.
Musk, whose web 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 know-how firm SpaceX, mind hyperlink firm Neuralink, the startup xAI and tunneling operator The Boring Co.
“Though there’s a detrimental impression, by way of doubtlessly alienating a few of their clients which may not be followers of Trump, the advantages far outweigh any negatives with regards to having a right-hand seat subsequent to Trump within the White Home,” mentioned 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 additionally 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 workers … as a shareholder, I’m paying somebody to not work for my firm,” he mentioned. “As a Cybertruck proprietor with self-driving that sucks and doesn’t work, I’m like, ‘Dude, this isn’t honest.’”
However regardless of his skepticism, Gerber mentioned he gained’t cease investing in Musk’s companies.
“I’ve made some huge cash with Elon,” he mentioned. “I’m not within the enterprise of investing primarily based on the recognition of CEOs.”
Musk doesn’t seem to present 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 seen unfavorably by about half of Individuals, in keeping with the AP-NORC ballot.
About 4 in 10 Individuals have a considerably or very favorable view of the world’s richest individual, similar to the share who view Trump positively. Likewise, about half of adults have a considerably or very unfavorable view of Musk — once more, just like Trump.
As a substitute, mentioned one political strategist, Musk is the best 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 all the time pushed this narrative that he’s a profitable developer and a really profitable businessman. I believe having Musk with him is his double-down on this enterprise success, good-for-the-economy, good-for-everybody-making cash sort of persona,” mentioned Christine Matthews, a nationwide political pollster who has labored for Republicans. “On this case, Musk is seen as this profitable, modern, tech entrepreneur, frontier-buster.”
Musk additionally has at his disposal X, the social media platform previously often called Twitter that he purchased and was a megaphone for conservative concepts. And having spent an estimated $250 million to help Trump within the election, Musk has signaled he’s prepared 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 scale of the federal authorities and cut back the rulemaking authority of the federal forms.
Tesla stands to make important beneficial properties beneath a Trump administration with the specter of diminished subsidies for various vitality and electrical autos doing probably the most hurt to smaller rivals. Trump’s plans for intensive tariffs on Chinese language imports make it much less probably that Chinese language EVs can be offered in bulk within the U.S. anytime quickly.
Some analysts imagine the billionaire’s position will create a really pleasant panorama for Tesla over the approaching years. Ives, the analyst at Wedbush Securities, mentioned Musk’s relationship with Trump may “revolutionize the Tesla story, particularly round robotics, AI and autonomous.”
Traders, he mentioned, are betting on Musk and see his political ascent as a “champagne second.” Not like Gerber, Ives believes that ending the EV credit score and taking subsidies from Detroit carmakers, Hyundai and different firms will create solely alternative for Tesla.
“I believe Wall Road is beginning to absolutely digest the potential advantages from Musk,” Ives mentioned.
Tesla shares closed at a report excessive on Tuesday, with a lot of the corporate’s current beneficial properties coming after Trump’s victory. However Gerber feels that leap is as a result of traders imagine Tesla could have a bonus with regards to autonomous driving as a result of Trump may grant the corporate a nationwide autonomy license.
Nonetheless, he thinks Tesla would be the “large 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 mentioned. “Elon is deceptive individuals to say it hurts the competitors if the credit score goes away.”
Musk’s different firms — together with his synthetic intelligence firm, xAI — may reap the advantages of working throughout the Trump administration, he mentioned.
“AI is a transformative funding that can create plenty of regulatory and governmental points, particularly round security and knowledge,” Gerber mentioned. “There’s loads 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, mentioned 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 mentioned of Musk.
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Beaumont reported from Des Moines, Iowa, and Parvini reported from Los Angeles.
