The article examines the economic implications of Elon Musk's political associations, particularly with Donald Trump. It highlights a correlation between Musk's public political alliances and the fluctuations in Tesla's stock value. Following Trump’s election, Tesla's stock initially saw a significant increase, attributed to market optimism. However, Musk's recent public support of Trump, particularly amid controversies, led to a notable drop in stock. The narrative underscores the 'corruption premium' investors were willing to pay based on Musk's political influence, signifying the intertwined dynamics of politics and corporate valuation.
In the first trading session after Donald Trump's election, Tesla shares gained 14 percent, but after Musk's association with Trump was made public, the stock fell 14 percent.
Musk's public messaging indicated a backing away from his domination of the federal government, attempting to emphasize a 'back to business' narrative.
Collection
[
|
...
]