Elon Musk bet big on Trump. Here's what he stands to gain — and lose — from his win

Elon Musk played a pivotal role in supporting Donald Trump's presidential campaign, investing heavily in political action and demonstrating public endorsement. Notably, Musk contributed close to $119 million to a committee formed to back Trump and appeared at rallies alongside the former president. As Trump returns to presidency, Musk's ventures like Tesla see a share price surge of 13%, owing partly to investor optimism about reduced federal intervention in the electric vehicle sector.

Musk has expressed approval of Trump's victory, predicting beneficial regulatory changes for Tesla's autonomous vehicle goals. Analysts speculate that Trump's administration might expedite approvals for Musk's envisioned self-driving vehicles and robotaxis. Despite potential risks posed by Trump's stance on electric vehicle support, such as dismantling existing incentives, Musk remains confident about Tesla's competitive edge without subsidies.

Concerns about a possible trade conflict with China could impact Tesla due to its reliance on the Shanghai plant. Furthermore, any engagement Musk might have with Trump's administration aimed at reducing government expenditure could divert his focus from running Tesla. Meanwhile, Musk's other major business, SpaceX, maintains a stable trajectory, and his ownership of X, despite criticism, remains unchallenged.

The automotive industry as a whole continues to drive forward with electric vehicle initiatives to comply with global environmental regulations. Even if U.S. emission standards shift, the push towards EVs persists due to consumer demand and international policy alignment. Traditional automakers are committed to expanding EV offerings, focusing on profitability and sustainability.

Overall, Musk's alignment with Trump's administration presents a complex mix of opportunities and challenges for his companies, potentially reshaping the electric vehicle landscape in the U.S. and influencing Tesla's global strategy.