With Trump back in the White House, Elon Musk seems set to play a big role in the new administration. The crypto market jumped on the news, with one token standing out: Dogecoin, Musk’s favorite. The coin shot up 24% as Trump’s win became clear.
At Trump’s victory party in West Palm Beach, he took a few minutes to praise Musk, calling him a “special guy” and a “new star.”
“He’s a super genius. We have to protect our geniuses. We don’t have that many of them,” Trump said.
Dogecoin, the Shiba Inu-themed memecoin tied to Musk, spiked early Wednesday morning, reaching $0.20—its highest since April. By Thursday, it settled around $0.19, a big jump from last year when it was struggling at $0.07. Musk, a vocal Trump supporter, gave over $118 million to his campaign and often attended his rallies in a “dark MAGA” hat. Now, as Trump’s ally, Musk’s influence in the administration is expected to be substantial.
What The Dogecoin Community Thinks About Trump’s Victory
Dogecoin fans are thrilled with Trump’s win, seeing it as a boost for the coin. They’re especially excited about Musk’s proposed “Department of Government Efficiency,” or DOGE—a clear nod to Dogecoin.
Trump even said he’d put Musk in charge of the DOGE department to cut government waste and stop fraud. When asked about it at a Pennsylvania town hall, Musk just laughed and said, “Yeah, D.O.G.E.” That comment alone sent Dogecoin up by 15%.
I fully endorse President Trump and hope for his rapid recovery pic.twitter.com/ZdxkF63EqF
— Elon Musk (@elonmusk) July 13, 2024
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Dogecoin’s been on a roll, up 157% this year after Musk endorsed Trump following a July assassination attempt on the former president. After Musk voiced his support on X, Dogecoin jumped another 24%. Musk’s influence on Dogecoin is nothing new. In 2021, after he hyped it up—calling himself the “dogefather” on SNL—the coin’s market cap hit $88 billion. Though a lawsuit later accused him of inflating Dogecoin’s price, it was dismissed in August. Today, Dogecoin stands as the eighth-largest cryptocurrency, with a market cap of over $28 billion.
How Elon Musk Stands to Cash in on Donald Trump’s Victory
In the early hours of Wednesday morning, as Donald Trump celebrated his victory in the presidential race, Elon Musk was right there in support. Over the past few months, Musk has committed heavily to Trump’s campaign, reportedly putting in around $130 million. It’s been almost like a second full-time job for him—he’s backed a swing-state push to register voters and used his social media platform, X, to rally support for Trump, sometimes sharing inaccurate information to sway public opinion.
Even though Trump won’t officially be in office until January 20, Musk’s investment seems to be paying off. On Wednesday, Tesla’s stock surged 15%, boosting Musk’s net worth by around $15 billion. Yet, Tesla isn’t without challenges. It’s facing tough competition from Chinese automakers, weaker sales in Europe, and some consumer backlash against Musk’s political stances.
Despite these hurdles, Musk’s close alliance with Trump—and Trump’s plans to roll back regulations that Musk opposes—has Wall Street betting that, overall, Tesla might come out ahead.
Trump’s Win Goes Beyond Tesla and Dogecoin
For Elon Musk, the stakes are much higher than just Tesla. In his victory speech, Trump took a moment to praise Musk’s SpaceX, thanking him for providing Starlink Wi-Fi terminals to areas in the U.S. hit by hurricanes. This goodwill gesture has Musk hopeful that a second Trump administration could work in his favour, possibly benefiting him and his companies in big ways.
Right now, Musk’s businesses are facing a host of challenges. Federal agencies have multiple investigations and lawsuits against them, touching on serious issues. These include alleged violations of securities laws, concerns about workplace safety, questions around labour and civil rights, environmental law infractions, accusations of consumer fraud, and vehicle safety defects.
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