No one has likely seen their personal net worth gain as much following Donald Trump’s election win than Elon Musk. In just the first few days after Nov. 6, the billionaire entrepreneur saw his net worth exceed $300 billion for the first time since 2022 on the strength of gains made byTesla(NASDAQ:TSLA) stock.
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- Tesla(TSLA) makes up the vast bulk of Elon Musk’s $300 billion net worth, but his ownership ofSpaceXcould yield greater gains for the billionaire.
- SpaceX receives tens of billions of dollars from NASA and the Defense Dept. that could significantly grow over the next four years.
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Following the election, though, TSLA has continued to pour on the gasoline and shares have gained 39% since the markets closed last Tuesday.Bloombergestimates Tesla accounts for about three-quarters of Musk’s vast fortune. It notes no person other than Musk has ever had a net worth north of $300 billion.
There are likely more gains to come for Tesla since Musk has Trump’s ear on a number of issues. He has said he wants the federal government to develop a formal approval process for autonomous cars and Trump has recanted some of his attacks on EVs since Musk’s endorsement and support for his campaign. He told supporters at one rally, “I’m for electric cars. I have to be, because Elon endorsed me very strongly.”
If Trump also follows through on his plan to end subsidies for EVs, a position Musk supports because he says it will hurt his competition more than Tesla, the stock could rise more. But its Musk’s stake in SpaceX that could financially benefit him more.
Reaching for the stars could send Musk’s fortune to the Moon
SpaceX only represents about 25% of Musk’s wealth, but it could send his fortune soaring
An estimated $82 billion worth of Musk’s net worth is derived from his ownership stake in the rocket company, or about a quarter of the total. He also owns social media platformX, artificial intelligence outfitxAI, and theBoring Company.
Yet SpaceX has been a big winner of government contracts over the years, withThe New York Timesreporting the space company has garnered over $15 billion worth from NASA and the Defense Dept. That could significantly grow over the next four years.
Musk, of course, has made no secret of his desire to reach the planet Mars. Much of the research and development SpaceX has been performing is for building rockets that could eventually carry humans to the Red Planet.
Earlier this year, Musk shared that his Starship will be the world’s biggest rocket standing 500 feet tall, or some 20% larger than its already massive Falcon Heavy rocket. SpaceX recently launched a Starship rocket and then caused a sensation when its Mechazilla launch tower caught mid-descent the reusable Super Heavy booster rocket. The sixth Starship launch is scheduled for next week.
However, Musk’s relationship with the Federal Aviation Administration has been rocky at times. The agency proposed fining SpaceX over $633,000 in civil penalties related to two Falcon 9 launches last year. The FAA previously fined SpaceX $175,000 for a separate launch violation.
Musk has called for the regulatory agency’s head to resign and a Trump presidency could see a reduced regulatory environment across all government agencies.
Connecting rural America to the internet
SpaceX’s Starlink satellite broadband internet could reap billions of dollars in new contracts to connect rural America
In addition to the rocket side of the business, SpaceX also operates Musk’sStarlinksatellite broadband internet business. After the Federal Communications Commission awarded Starlink $885 million in contracts in 2020, it revoked them in 2022 claiming the satellite company could not deliver the promised service.
It upheld the decision last December despite Starlink assisting in helping Ukraine remain connected during its war with Russia and providing connectivity to rural Americans whose traditional broadband connections had been disrupted due to natural disasters.
Trump could greatly expand Starlink’s reach if it becomes the centerpiece of his plan for $42 billion in future broadband funding.
No matter what, Musk will get richer
Tesla will always be the primary portion of Musk’s wealth, but SpaceX in particular could enjoy massive growth over the next four years that outshines the EV maker’s gains.
It’s not particularly easy to invest alongside Musk in SpaceX, though there are pathways to do so, but using them to bet on the rocket company isn’t a bad investment strategy.
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