Tesla Inc. (NASDAQ:TSLA) and Space Exploration Technologies Corp. (NASDAQ:SPCX) CEO Elon Musk has not been one to shy away from politics, with the billionaire being instrumental in President Donald Trump‘s re-election bid in 2024 against Democratic Presidential candidate and former Vice President Kamala Harris.
A Brief Summary of Musk’s Trump Admin Sojourn
Musk, in the run-up to the 2024 Presidential Election, spent close to $250 million in donations to the Trump campaign, endorsing Trump at several public events. Once Trump was elected into office for a second term, Musk became involved with the White House when he led the short-lived Department of Government Efficiency, or DOGE, a non-governmental organization established to streamline excess government spending.
However, relations with the Trump administration turned sour within months after public attacks via social media posts over policy disagreements ultimately led to his departure from the White House. Since then, DOGE has shut down and Musk’s ties with Trump, as well as conservative politics, have only grown deeper.
Now, a report by the New York Times on Thursday said that the billionaire is planning to spend $100-$120 million to back at least eight GOP candidates in the upcoming midterm elections through his Super Political Action Committee, America PAC, according to anonymous sources familiar with the matter.
Elon Musk, America PAC and the GOP did not immediately respond to Benzinga‘s requests for comment.
While the report says the figure could change, Musk is targeting Senate races in at least five states: Alaska, Ohio, Iowa, Maine and Michigan, while also holding talks about the races in Texas, Georgia and North Carolina, the report said. House races in California, Wisconsin and Washington are also being targeted, the report said.
How Musk’s Politics Have Affected Tesla
Musk received considerable backlash for his affiliations with Trump as well as other right-wing political ideologues, with Tesla sales going down significantly across multiple markets throughout the globe last year. Musk himself acknowledged that he might have gotten “too involved” with politics in a recent interview with The Economist.
Cathie Wood, the CEO of ARK Invest and a known Tesla Bull, acknowledged that Musk’s political activities had caused brand damage for Tesla. Musk’s political activities were also criticized by investor Ross Gerber of investment firm Gerber Kawasaki.
Reports of vandalism targeting Tesla vehicles and infrastructure also came to light following Musk’s backing of Trump. While Dan Ives, another bullish Tesla investor, had said that the billionaire needed to leave politics and focus on the EV giant.
Meanwhile, BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF), Tesla’s rival from China, recorded triple-digit surges in the European market, coinciding with Tesla’s decline in the same region. BYD’s rise illustrated the advent of Chinese automakers expanding into Europe.
Tesla Rebound
Since then, Tesla sales have rebounded, with Tesla’s Model Y emerging as a sales-topping vehicle across multiple markets. The company has recorded sales boosts in Europe as well as China. However, Musk’s political endorsements have also gotten further right.
Musk has shared strong opinions on immigration and gender identity, among other topics. The Tesla CEO had also made headlines recently for his vocal criticism of director Christopher Nolan and his film, “The Odyssey.” Musk took issue with Nolan’s decision to cast Lupita Nyong’o, a Mexican-born actress of Kenyan descent, as Helen of Troy, as well as trans actor Elliot Page in the movie.
It remains to be seen if Musk’s current political push will affect Tesla sales or not, but in one of the U.S.’s largest electric vehicle markets, Tesla could stand to lose out on potential customers to rivals like Rivian Automotive Inc. (NASDAQ:RIVN) and Lucid Group Inc. (NASDAQ:LCID).
The company has not yet confirmed if it will participate in Gov. Gavin Newsom‘s (D-CA) MyFirstEV program targeting first-time EV buyers in the state with a $3,000 discount on new EVs and a $1,750 discount on used ones. Lucid and Rivian have both confirmed participation in the program, which will offer discounts on EVs priced below $50,000.
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