Imagine if a business tycoon, holding a brilliant jewel in the tech world, is willing to spend hundreds of millions of dollars just to bet on a leader who might rewrite his business fate—what secrets lie behind this? Indeed, this business tycoon is none other than Elon Musk, the head of Tesla and SpaceX, and the object of his bet is none other than the newly elected Trump.
On November 7, a report by Fortune magazine detonated like a bomb, causing a stir in the cryptocurrency and tech communities. Musk not only spent over $130 million to support Trump's campaign but also received abundant praise during Trump's victory speech. Trump not only highly praised Musk's SpaceX and Starlink satellite internet project but also hinted that these businesses might receive government contracts and even, at Musk's request, establish a new position for 'government efficiency' in his administration.
Is this just simple promotional support? Not at all! In my view, Musk's actions are undoubtedly aimed at seeking broader horizons for his business empire.
First, relaxing regulations. Trump has consistently promised to reduce regulations, which is undoubtedly good news for Musk. After all, both Tesla's autonomous driving technology and SpaceX's rocket launch business face strict regulations. Once regulations are relaxed, Musk's companies will undoubtedly gain a significant advantage.
Secondly, obtaining government contracts. Over the past decade, SpaceX and Tesla have secured at least $15.4 billion in government contracts. With Trump's support, the quantity and quality of these contracts may very well rise to new heights in the future.
Furthermore, influencing policy making. In fields such as rocket launches, autonomous driving, and artificial intelligence, regulatory policies are crucial for the development of companies. Musk's support for Trump undoubtedly aims to secure more voice for himself, in order to occupy a favorable position in policy making.
Finally, protecting subsidies. For electric vehicle companies like Tesla, subsidies such as electric vehicle tax credits are crucial. Musk's actions may also be aimed at securing more policy benefits for his company.
As expected, the stock prices of Musk's companies have already risen. Tesla's stock price soared by 15% after Trump's victory speech. This is undoubtedly a positive market reaction to Musk's actions.
So, how do the friends at mlion view this event? In milon’s opinion, this is not only Musk's personal political choice but also a wise move for him to seek a more lenient regulatory environment and more government subsidies for his companies. For us investors, this is undoubtedly a signal worth pondering.
In this rapidly changing cryptocurrency world, following the footsteps of the big players may help us avoid detours. But remember, investing carries risks, and decisions should be made cautiously.
For more WEB3 & AI analysis, please visit: mlion.ai
The above content is for informational sharing only and does not constitute any investment advice! Investing carries risks, and one should be cautious when entering the market!
Follow me for daily updates on market news!
