The Rise of the Musk Trade: A Look at Elon Musk’s Impact on the Financial World

Move over Trump trade, it's all about the Musk trade now. Elon Musk, the world's richest person, has been making waves in the financial market during the Trump era.

Elon Musk's Soaring Star

Since Trump's election victory in November, assets tied to Elon Musk have experienced significant growth. Companies like Tesla, xAI, and SpaceX have all seen their valuations skyrocket in recent months. Musk's net worth has surged by an impressive $135 billion, solidifying his position as a key player in the financial world.

The Trump Trade vs. The Musk Trade

While Trump's election victory initially led to a surge in various assets, including stocks and crypto, the momentum has not been sustained. The president's indecisiveness, particularly concerning tariffs, has caused the Trump trade to lose steam. In contrast, assets associated with Elon Musk have continued to gain appeal and value, making the "Musk trade" a favorable choice for investors.

The Impact Across Musk's Ventures

Elon Musk's influence can be seen across his array of companies, both public and private. From Tesla's ambitious plans for the future to the success of meme cryptocurrency Dogecoin, Musk's ventures have been thriving since November.

Positive Outcomes of the Musk Trade

Here are five notable ways in which the Musk trade has delivered positive results:

Tesla

Despite fluctuations in returns, Tesla's stock has surged by 42% since the election. Musk's strategic plans for the electric vehicle maker, including the introduction of automated Cybercabs in Austin, Texas, have sparked optimism among investors.

Dogecoin

The meme cryptocurrency Dogecoin, a favorite of Musk, has seen a 60% increase since Trump's election win. The rise of meme coins has contributed to Dogecoin's success, driven by the influence of both Trump and Musk.

X

Formerly known as Twitter, X has experienced a resurgence, with banks successfully selling off previously unattractive debt. The platform's financial performance has improved, attracting advertisers like Apple and Amazon.

xAI

Musk's xAI, a competitor to OpenAI, has garnered investor interest and is in talks to raise $10 billion at a $75 billion valuation. The company's focus on AI technologies has proven to be a lucrative move.

SpaceX

SpaceX, Musk's space exploration company, has seen a significant increase in valuation, with deals being struck for its Starlink satellite internet division. The company's success extends globally, with agreements in place with entities like the Italian government.

Elon Musk's impact on the financial world continues to grow, with his ventures proving to be key players in the market. The Musk trade has emerged as a viable alternative to the Trump trade, attracting investors with its promise of substantial growth and innovation.

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By: mfox@businessinsider.com (Matthew Fox)
Title: The Rise of the Musk Trade: A Look at Elon Musk’s Impact on the Financial World
Sourced From: www.businessinsider.com/elon-musk-company-valuations-donald-trump-election-impact-tesla-x-2025-2
Published Date: Fri, 21 Feb 2025 09:05:02 +0000