Elon Musk's endorsement of Donald Trump's 2024 presidential campaign might seem surprising to some, especially given Musk's past political inclinations.
Once a supporter of Democratic candidates — he voted for Barack Obama in 2008, 2012 and Hillary Clinton in 2016 — Musk publicly soured on the party in recent years, and turned his focus to Trump's bid to retake the White House.
Musk's shift might seem ideological on the surface, but a closer look suggests his motivations may be less about politics and more about money.
Musk's support for Trump — and his fierce rejection of Vice President Kamala Harris — aligns closely with the performance of his biggest asset: Tesla Inc. TSLA.
Tesla: Thriving under Trump, Lagging under Biden
To understand Musk's motives, it's crucial to examine Tesla's stock performance during Trump's presidency compared to Biden's.
During Trump's term from November 2016 to November 2020, Tesla stock surged by an astounding 987%, yielding an annualized return of roughly 84%.
This staggering growth propelled Musk's net worth from $8 billion in 2016 to $107 billion by the end of Trump's presidency — a more than 13-fold increase, according to data from the Bloomberg Billionaires Index.
Under Joe Biden’s presidency, Tesla's performance has been notably more modest. Since November 2020, Tesla shares have gained about 86.5%, or roughly 16.2% on an annualized basis.
While this is still a respectable performance, it pales in comparison to the growth Tesla saw during Trump's tenure. Musk's wealth has continued to rise, reaching an estimated $262 billion in November 2024, but the rate of increase has slowed significantly
Given that Musk's fortune is heavily tied to Tesla's stock price — he owns 22.3% of Tesla's 3.21 billion outstanding shares his wealth has become increasingly sensitive to the company's performance in the stock market.
According to the Economic Times, roughly three-quarters of Elon Musk’s wealth is tied directly to Tesla shares.
| Metric | Trump Presidency (Nov. 2016 – Nov. 2020) | Biden Presidency (Nov. 2020 – Nov. 2024) |
|---|---|---|
| Tesla Stock Price Increase | +987% | +86.5% |
| Annualized Return | ~84% | ~16.2% |
| Musk’s Net Worth (Start) | $8 billion | $107 billion |
| Musk’s Net Worth (End) | $107 billion | $262 billion |
| Net Worth Growth | 13-fold increase | 2.5-fold increase |
Musk’s Major Threat Is Jensen Huang and Nvidia's Meteoric Rise
While Tesla's growth cooled, Nvidia surged ahead, setting up Jensen Huang, NVIDIA Corp.’s NVDA CEO, as a real challenger to Musk's status as the world's richest person.
Nvidia shares have skyrocketed by 958% during Biden's presidency, curiously mimicking Tesla's returns during the preceding four years.
This rally has driven Huang's wealth from $11.8 billion in November 2020 to $118 billion in November 2024, a nearly 10-fold increase that echoes Musk's meteoric rise during the Trump years.
Huang, who currently ranks 11th on Bloomberg's Billionaires Index, is not yet close to Musk's wealth level.
But if Nvidia's stock continues its upward trajectory, Huang could quickly close the gap, especially if Tesla's performance remains moderate.
For Musk, seeing the AI giant experience the kind of exponential growth Tesla once enjoyed might underscore the need for a return to Trump-era policies, which he may perceive as more business-friendly for Tesla and his wealth.
Chart: Tesla (Nov. 2016-Nov.2020) vs. Nvidia (Nov. 2020-Nov. 2024)
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