On Wednesday, November 6th local time, Republican presidential candidate Trump won more than half of the electoral votes, securing victory in this year's US presidential election. He also announced his victory in the 2024 presidential election.

Impacted by this news, the US stock market surged significantly in pre-market trading, with the three major index futures all rising by nearly 2%, almost 13%. Analysts believe that due to Tesla CEO Musk's support for Trump, this electric car manufacturer will be one of the main beneficiaries of Trump's return to the White House. $Tesla (TSLA.US)$ Up nearly 13%. Analysts believe that due to Tesla CEO Musk's support for Trump, this electric car manufacturer will be one of the main beneficiaries of Trump's return to the White House.

In this election cycle, Musk can be described as the most high-profile supporter of Trump, not only providing over $0.13 billion in funding to Trump and other Republicans, but also frequently campaigning for the Republicans on his social media network X, attacking Democrats.

Earlier in the day, Musk posted a photo on X of himself and Trump waiting for the election results at Mar-a-Lago. After Trump secured the victory, Musk posted a photo of a rocket launch with the caption 'The future (of America) will be great'.

Although Musk does not fully represent the entire Silicon Valley, and often makes controversial statements, his significant influence in space exploration, as well as in the fields of electric vehicles, AI, etc., has helped Trump attract key industry leaders in driving innovation and technology development.

Wedbush Securities analyst Daniel Ives said: "Trump's victory is the biggest bullish for Tesla and Musk." He pointed out that if the US government reduces tax incentives for electric cars, Tesla will have a competitive advantage over other auto manufacturers. "A Trump victory could increase Tesla's stock price by $40-50."

Other analysts predict that this election will bring more car sales for Tesla and more advertising orders for social media platform X. In addition, other parts of Musk's "business empire" are expected to receive significant rewards, including lower corporate tax rates, more lenient labor laws and environmental regulations, and even SpaceX may have the opportunity to receive more government contracts.

Earlier this year, Richard Pierce, the Lyle T. Alverson Chair Professor at the George Washington University Law School, told the media, "Under the Trump administration, Musk would face much less trouble, as both men are hostile to regulatory institutions."

Each of the six companies under the Musk Group has complicated relationships with the federal government. Angela Aneiros, Assistant Professor of Law at Gonzaga University Law School, previously predicted, "If Trump is re-elected, federal agencies will shift their focus of investigations away from regulatory compliance issues."

Regarding SpaceX, Musk previously mentioned that the "Mars colonization plan" is only possible under Trump's administration. In September, he posted on X, "US laws and regulations are deteriorating year by year," "If Harris wins, we will never reach Mars."

Furthermore, Musk may play an influential role in the Trump administration, as Trump had previously promised to appoint Musk to lead the "Government Efficiency Committee" once elected. Last week, Musk pledged to find $2 trillion in budget cuts within the government.

Several investment banks have previously speculated on the scenario of 'Elon Musk entering the White House'. Piper Sandler's strategy team believes that a basket of stocks most sensitive to government spending may underperform.

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