The Elon Effect & US Election: Unpacking Trump’s “X-Factor” through the lens of business and politics

The United States has just witnessed one of the most surprising election outcomes in recent
memory. For months, exit polls hinted at Donald Trump’s likely defeat. Analysts and media
predicted a blue wave, but in a stunning twist, the results painted a very different picture, with
Trump emerging as the victor. Several factors drove this unexpected turn, with inflation and
increasing polarization playing substantial roles. However, one unexpected element that appears to have swayed the results is what can be called the “X Factor” — or perhaps more accurately, the “Elon Musk Factor.”

The Tesla Boss has been vocal about his support for Trump and was able to reach out to many
people through his platform, which became a crucial factor behind the Republican’s victory in
the age of hyperactivity. In the victory speech by Donald Trump, Elon Musk got a special
mention, “Let me tell you, we have a new star. A star is born, Elon”. While Mr. Musk has often
called himself a “politically moderate” person on multiple occasions, he failed to depict the
same, at least in the Presidential elections in 2024. Soon after the assassination attempt on Trump in July this year, Musk more openly shared that he would be supporting the 78-year-old’s
candidature. This was witnessed through several posts and actions that Musk carried out in the
past couple of months.

After the assassination attempt, a user on X highlighted how Trump had become the target of his enemies time and again. While the “politically moderate” Musk could have shared a neutral or at least a thoughtful view, he decided to draw a comparison. Responding to the post, the Tesla CEO wrote, “And no one is even trying to assassinate Biden/Kamala,” which signified the extent to which he wished Trump to win the polls. Another sensational example of his support was witnessed by his unique initiative to motivate more voters in the battleground states.

Musk announced that he would give away $1 million daily to registered voters in battleground
states until the elections are over, making a significant financial contribution. “We want to try to
get over a million, maybe 2 million voters in the battleground states to sign the petition in
support of the First and Second Amendment. … We are going to be awarding $1 million
randomly to people who have signed the petition every day, from now until the election,” he said
in Harrisburg, Pennsylvania. While this was challenged for its legality, a judge later gave a go-
ahead to Musk. With him supporting Trump, the voters were also expected to be swayed
similarly.

Surprisingly, regions like Wisconsin, Michigan, and Pennsylvania leaning toward the
Democratic Party voted in large numbers for the Republicans this time, which surprised the
psephologists.

Musk’s extent of help did not end there. He donated over $119 Million to fund a Super PAC
working to re-elect Trump in the Polls. And interestingly, the duo spent the election night
together at Trump’s Mar-a-Lago Resort in Florida! This help would have also resulted in Musk

gaining remarkable backlash for his over-involvement in politics, which was eventually the case.
However, Musk seemed focused on only one goal: Driving Trump to victory. Now, the elephant
in the room is a short and simple question: “Why?” Why did Musk extend such vehement
support to the Republican Candidate? While the ulterior motives may be many, the prima facie
and immediate reason is nothing but business, which drives both Musk and Trump similarly.

Donald Trump’s re-election immediately impacted Elon Musk, and a financial benefit was
witnessed. Soon after Trump’s victory, the share price of Tesla Motors soared by around 15%,
and now, Musk’s total net worth stands at around $290 billion, estimated. Well, throwing name,
fame, and money behind someone cannot come without an objective, right? And the objective
for Musk can be widespread.

Another significant impact that Musk might witness through Trump’s victory is in his ownership
of SpaceX. The company is a leading market player in sending government satellites to space;
now, Trump will seek to capitalize more through his bond with Trump. SpaceX has also started
to manufacture spy satellites, and the legalities surrounding this can be minimized with Trump’s
intervention in the long run.

Besides, Musk’s Tesla can also witness an increased benefit, mainly because Trump has
announced that his administration would ensure the “lowest regulatory burden”, which would
economically help the world’s richest person. However, there is one more way Musk can gain
more power.

Trump’s re-election will likely include Elon Musk in the cabinet, where he might take up the
duty to cut costs, reform regulations, and improve what he calls a "massive, suffocating federal bureaucracy". Musk has called this a “Department of Government Efficiency”, the playful
acronym of DOGE, a cryptocurrency that Musk popularised. Note the financial angle there as
well!

Now, with a direct involvement in policy making and politics, and increased benefits in his
business, Musk has more than sufficient reasons to continue backing. It’s clear that Trump’s so-
called “New Star” and “Super Genius” is working tirelessly to reshape politics — traditionally
meant to serve the public — into a platform that advances business interests, particularly his
own. This shift highlights a concerning trend where financial power increasingly overshadows
ideas, turning political arenas into a marketplace where business interests drive the agenda,
making elections a politics of business.