Published By: Soham Halder

Elon Musk's Bet on Donald Trump: Visionary Support or PR Disaster?

Any election is incomplete without allies, influence of affluent people.

The affluence of the tech giants and venture capitalists in Silicon Valley always play an important role in presidential election. One of the wealthiest persons in this world, Elon Musk supported Donald Trump in 2024 presidential election. Will this bold move backfire or bring more wealth to him? Let's understand.

Support from Silicon Valley for Donald Trump:

The tech titans are already divided into two groups for supporting president contenders. Elon Musk has been vocal about his support for Donald Trump. Other prominent figures supporting him are Craft Ventures cofounder David Sacks, Social Capital founder Chamath Palihapitiya, Andreessen Horowitz cofounder Ben Horowitz, cofounder of Paypal Ken Howery, cofounder of Winklevoss capital management and Gemini Cameron Winklevoss.

Reasons behind Tech Titans’ Support for Trump:

The tenure of Donald Trump was far different from Biden’s administration. Investors in Sillicon Valley received lots of support, even in crypto sector from him. However, the situation has changed during Joe Biden administration. Currently, the global economy is facing a slowdown. In the first quarter, the real GDP growth has witnessed a slow progression in America.

Rob Haworth, senior investment strategy director at U.S. Bank Wealth Management said: “If Republicans win, there is likely to be more of a push for development of fossil fuels, while a Democratic win might further promote renewable energy development.” 

“Ironically, businesses tied to renewable energy saw their stocks perform better under the Trump administration, while stocks of oil companies and other traditional energy companies have performed better under the Biden administration,” added Haworth.

During campaign, Trump has already threatened to raise tariffs, which might lead to price rise. He even talked about curtailing immigration.

The Conflict & Scope of Partnership:

Once Donald Trump shared his views against Electric Vehicles (EV) by announcing to end ‘major tax breaks’ along with subsidies for this  sector. The major reason behind this announcement was his idea about climate change. The former president claimed climate change is nothing but a ‘hoax’. If he becomes President again, will it impact one of the largest EV manufacturers in the world, Tesla? If so, then why Elon Musk is supporting Trump?

(Credit - @elonmusk X handle)

Analysts are predicting Musk’s support for Trump is purely based on business reasons. He probably wants lesser competition from other automobile companies like Ford and General Motors. If there is any reduction in the subsidies, it might also hamper the growth of these companies.

Further, China has already launched low-cost EV vehicles using the US-Mexico-Canada Trade Agreement. As per few reports, the Chinese companies are currently building factories in Mexico to export cheap EV vehicles at a cheap rate to the US. As Trump is planning to “levying tariffs on import of EV vehicles” and “Chinese products”, this partnership might help Tesla owner in this competition.

Since the assassination attempt on Donald Trump during campaign, the CEO of SpaceX has extended his support for the Republicans and wrote on X: “I fully endorse President Trump and hope for his rapid recovery”.

(Credit - @iam_smx X handle)

Musk’s open support for Trump is reflective of embracing rightwing leaders across the globe. He prefers those countries with enormous resources along with supply chains to extend his buisnesses. Previously, Musk has supported Argentina’s president, Javier Milei. He even gave Milei a personal tour of his Tesla factory in Texas. The major reason behind this support is Argentina’s lithium reserves, which is largest in the world. Meanwhile, this rare mineral is required to produce electric cars. Musk prefers to build such symbiotic relationships with global leaders.

What History Reveals about Such Endorsements?

Previously, TIME founder Henry Luce promoted the campaign of General Dwight Eisenhower, which even gave him an access to the White House. However, this full-throated endorsement ultimately led to decrease in TIME’s journalistic reputation on a long-term.

Similar thing may happen to Elon Musk as his ownership of X since has seen a loss of engagement on this renowned social media platform. Currently, X has 300 million global users including 50 million Americans. Of course, Musk wants to expand his businesses, however, any Unfavorable result in November election can immediately lead to detrimental consequences.

“I love Elon Musk ... we have to make life good for us smart people. And he’s as smart as you get,” Trump said at a Bitcoin Conference in Nashville. “He gives me $45 million a month! C’mon. Not $45 million. He gives me $45 million a month.”

He continued, “I mean other guys, they give you $2 and you got to take them to lunch, you got to wine ‘em and dine ‘em.”

However, Musk refused by saying to podcaster Jordan Peterson “What’s been reported in the media is simply not true. I’m not donating $45 million a month to Trump.”

Meanwhile, Democrat candidate Kamala Harris has touted this Elon Musk and Donald Trump combo as “self-obsessed rich guys.”