Elon Musk can help accelerate your stocks

Elon Musk, with a fortune of $400 billion, is already the richest man in the world – even though he chooses to live in a small $50,000 prefab house.

But there has been speculation that this embattled tech entrepreneur, an increasingly close ally of newly-elected President Donald Trump and supporter of Reform UK, could become a trillionaire in the next four years.

This rise in fortunes would be fueled by growth at his main business, Tesla, the world’s largest electric car maker, and by expansion at his other key business, Space X, the $350 billion designer and manufacturer of advanced rockets and spacecraft. The colonization of the planet Mars is one of the objectives.

Do the odds presented by Musk’s mix of talent and friends in high places mean that now is the time to bet on this ‘free speech absolutist’?

After all, Trump’s presidential acceptance speech even mentioned a Space

Cathie Wood, US fund manager at Ark Invest, says Musk is equipped with a unique insight into the “current technology landscape”, where artificial intelligence (AI), energy storage and robotics converge. These insights are one reason why Tesla’s board is fighting to give him a $56 billion pay package, even though a court has rejected the reward.

Another justification for this pay increase is the enormous benefit that could potentially come from Musk’s role as co-head of the new US Department of Government Efficiency (Doge).

If this body cuts red tape, it should boost Tesla, Space the social media site X. formerly known as Twitter, which has declined in value under his ownership.

But despite the rewards that could come from the Trump alliance, investors should consider the views of those who are not members of the Musk fan club.

They don’t doubt his extraordinary intellect and capacity for seemingly endless innovation, but argue that the new political position will test even Musk’s constitution, even though he likes to work 100 to 120 hours a week.

David Coombs, head of multi-asset investments at Rathbones, is among the skeptics, saying he would never put customers’ Isa and pension money into Tesla, arguing it is ‘a cult-like investment’.

Coombs also says the bromance with Trump could end.

Ben Barringer, technology analyst at asset manager Quilter Cheviot, also says it is worth waiting to see how the relationship between the president and the erratic Musk unfolds. “The CEOs of the largest technology groups have met with Trump and Musk in an effort to determine what the future looks like for the regulation of their industry,” Barringer said.

“These discussions are taking place behind closed doors, but it is an area where significant progress can be made next year.”

The prospects look interesting, possibly exciting, but also uncertain. If that fills you with excitement rather than fear, these are your options.

TESLA

Early in the year, Tesla was seen as the lagging member of the ‘Magnificent Seven’ tech stocks: Alphabet, Amazon, Apple, Meta, Microsoft and Nvidia make up the rest of the gang. But Tesla has advanced in the past month, rising 108 percent to $476. The price is now 1,777 percent higher in five years – and 3,557 percent higher than ten years ago.

In the summer, the focus was on the company’s rising costs and the challenge posed by cheaper Chinese BYD cars for the various car models. Now there is growing belief that Trump’s victory will allow Tesla to pursue its autonomous vehicle ambitions in a more unfettered manner.

Under current rules in the US, there are barriers to the production of large numbers of cars without pedals or steering wheels. A deregulatory move by the Doge could recognize these obstacles

include detailed reporting of crashes – relaxed. The result could be $1 trillion in additional sales for Tesla, brokers Wedbush estimate.

Meanwhile, it is believed that Trump would take steps to protect Musk if Beijing retaliated against US tariffs by imposing its own tariffs on Tesla cars.

Wedbush has set a target of $515 for the stock, adding that “in a best-case scenario” the price could rise to around $650 by the end of 2025. Other analysts are more skeptical about the self-driving car revolution, but rate the stock as a “respite.”

SPACE

It is not possible to buy shares in Space X directly as it is a privately held company. Musk owns about 54 percent of the shares, while the rest is owned by institutions and venture capitalists.

However, you can gain exposure to the company through three investment trusts from the Baillie Gifford management group: Scottish Mortgage, Edinburgh Worldwide and Schiehallion.

Lawrence Burns, the group’s deputy manager, calls Space

Founded by Musk in 2002, Space The collaboration with NASA includes taking two astronauts to the International Space Station and back.

Musk would like to spend his retirement on Mars. But Space X Chief Operating Officer Gwynne Shotwell has no such dreams.

She is more interested in attracting more terrestrial customers to Starlink, Space X can go public. The company was valued at $210 billion in June. The subsequent jump to $350 billion makes it an irresistible proposition.

Currently, however, tech companies see more benefit in staying private. Perhaps deregulation can change this view.

Scottish Mortgage, part of the FTSE 100, backs all types of technology companies, including Amazon, Nvidia and Tesla. Space

Scottish Mortgage is my personal bet on Tesla and Space X, but it’s a high-risk vehicle despite its solid-sounding name.

Schiehallion, named after one of the Munro mountains, is another trust suitable only for those with a taste for a gamble.

However, excitement over the Space