The market was abuzz with excitement following the presidential election. It has been dubbed the “Trump Trade” as all assets, from stocks to cryptocurrency, experienced an initial rise.
The initial excitement waned as the policies and tariffs were uncertain.
Elon Musk seems to have captured the attention of investors.
The “Musk Trade” could be more lucrative than the Trump trade in today’s market.
Musk’s Midas Touch: A $135 billion increase in Net Worth
Musk’s own personal wealth is the most convincing evidence that this change has occurred.
Bloomberg Data reveals his net worth to have risen by $135 billion in the past year.
The “Musk Trade” is not limited to Musk’s personal wealth. It also includes his public and private companies and assets which act as gauges for sentiment towards the Tesla CEO, who can be polarizing.
Tesla’s electric rise: Navigating policy headwinds
Tesla’s stock is up 42% in the last year.
Investors are encouraged by Musk’s ambitious 2025 plans, which include the launch of an automated Cybercab network in Austin, Texas and a return of vehicle sales growth.
Many Wall Street analysts see Trump’s proposal to reverse the tax incentives for electric cars that were in place under Biden as an opportunity for Tesla and a threat for its competitors.
Dogecoin resurgence – riding the meme wave
Since the victory of Donald Trump, Dogecoin has risen by approximately 60%.
Musk’s love for Shiba Inu coins is widely known, and he even named the Department of Government Efficiency Shiba Inu coin.
Musk, who is a prominent figure in public debate, has fueled the recent boom in meme coin sales. This allowed Dogecoin to take advantage of the excitement generated.
X’s financial turnaround: From debt burden to market darling
X (formerly Twitter) has seen a financial resurgence over the past few months.
The banks that funded Musk’s purchase of social media have sold off a large portion of their previously unappealing loans they held since 2022.
Last week, the latest installment of this $4.74 billion debt was sold at its face value.
Morgan Stanley, along with other banks, increased the sales from their initial planned $3 billion.
The recent data shows that X will generate EBITDA in the amount of $1.2 billion by 2024. This is roughly equivalent to the time period prior to Musk’s acquisition.
Advertisers are also returning, as major companies like Apple, Amazon and Robinhood have been among the most active in the month of January.
xAI valuation soars
Elon Musk’s xAI is a direct rival to OpenAI and also benefits from a surge in investor interest.
Bloomberg reports that the company is in negotiations to raise $10 Billion at $75 Billion valuation.
It would be an 88% jump from the $40 billion it was valued at in December when they raised $6 billion as part of a Series C round.
SpaceX orbital trajectory
SpaceX, Musk’s spaceflight firm, has also seen its value soar in the wake of the recent election.
The company’s shares were sold in December at $350 billion, an increase of 67% from the previous $210 billion.
SpaceX has been actively working to secure deals with T-Mobile and other companies for Starlink, its satellite internet business.
International governments also show interest. The Italian government is reportedly considering an $1.6 billion Starlink deal to secure phone and internet services.
The market’s increasing reliance on Musk and his diverse projects is evident in the surge of interest across all of Musk’s ventures.
The “Musk Trade” is just beginning.
The post Forget Trump and bet on Musk : decoding market’s favourite new play could be updated as the updates unfold.
