In a stunning twist of political alliances, Elon Musk, one of the world’s wealthiest and most influential tech entrepreneurs, has thrown his full support behind former President Donald Trump in his bid to reclaim the White House in 2024.
With hundreds of millions of dollars on the line and the potential for major government contracts, Musk’s endorsement isn’t just a simple show of support – it’s a calculated gamble with vast implications for both tech and politics.
A Declaration of Victory Before the Race Is Called
In the early hours of Wednesday morning, America PAC, a political action committee closely linked to Tesla and SpaceX CEO Elon Musk, declared victory for Donald Trump in the 2024 presidential election, even though no major news outlets had confirmed the results. This announcement, posted on Musk’s social media platform X (formerly Twitter) at 1:26 a.m. ET, read, “BREAKING: Donald Trump has won the 2024 Election.”
At the time of the post, Trump had gained an edge by securing key swing states, including North Carolina and Georgia, with Fox News also projecting a Trump victory in Pennsylvania. These wins put Trump tantalizingly close to the electoral threshold needed to secure the presidency. Nonetheless, votes were still being counted in critical states like Michigan and Wisconsin, making the early declaration a bold, and potentially controversial, move.
Despite the uncertainty surrounding the final tally, prediction markets began to price in a near-certain Trump victory. The anticipation even rippled across financial markets, causing a spike in the U.S. dollar, Treasury yields, and Bitcoin. Tesla’s stock also surged, underscoring Musk’s significant stake in the outcome. With Musk’s America PAC spending over $132 million in support of Trump’s campaign, it’s clear that this is more than just political posturing.
Musk’s Million-Dollar Gamble on Trump
Elon Musk’s unprecedented financial backing of Donald Trump’s campaign reflects more than just ideological alignment. Musk has reportedly donated at least $132 million to support Trump’s bid, cementing his status as one of the former president’s largest financial supporters. But for Musk, the investment appears to be driven by business interests just as much as political beliefs.
Sources close to Musk suggest that a Trump presidency could yield tangible benefits for his business empire, spanning Tesla, SpaceX, Starlink, and his newly acquired platform, X. Trump has already hinted at a potential role for Musk in his administration, promising him the leadership of a new government efficiency commission if he wins. In a recent speech at a Trump rally, Musk himself claimed he could trim $2 trillion from the federal budget, portraying himself as a champion for fiscal responsibility and government reform.
Such a position could give Musk unprecedented influence over federal spending and policy – a lucrative proposition for a tech tycoon whose businesses rely on government contracts. Political analyst Bradley Tusk explains that Musk’s interests align with Trump’s policies, as the tech billionaire is counting on a Trump administration to support NASA contracts for SpaceX, federal contracts for Starlink, incentives for Tesla, and Section 230 protections for X.
However, this high-stakes bet comes with potential risks. “If Kamala Harris wins, the downside for Musk is a lot greater than had he just done nothing,” Tusk noted. Musk’s all-in approach contrasts with the typical tech industry strategy of hedging bets by contributing to both sides of the political spectrum.
From Libertarian to Trump Loyalist: Musk’s Political Transformation
Musk’s support for Trump marks a significant shift from his earlier, more centrist political stance. Historically, Musk has described himself as a centrist or even a “Silicon Valley libertarian,” expressing skepticism of both extremes on the political spectrum. During Trump’s first term, Musk was notably cautious, aiming to influence rather than overtly support the president’s policies.