Financial Shockwave: What the Election Fallout Means for Elon Musk's Empire

The political landscape has shifted, and the ripple effects are already being felt across Elon Musk's business ventures. From Tesla's bottom line to SpaceX's government contracts, here's a breakdown of the financial drama unfolding.

Tesla: A $2 Billion Hit?

Tesla is facing a major challenge with the elimination of a key financial lifeline: EV subsidies. These incentives weren't just a bonus—they made up a staggering 38% of the company's 2024 profits. That's a massive hole to fill, potentially impacting everything from vehicle pricing to future R&D. Will Tesla's innovation be enough to overcome this multi-billion dollar hurdle?

SpaceX: From Scrutiny to a Surprising Victory

SpaceX, with its deep reliance on government contracts, was put under the microscope. Early reports suggested potential cuts, but a review deemed most of the company's work "critical," sparing it from major financial damage.

Then, a stunning turn of events. Despite a history of public tension, a surprising executive order was signed in August 2025 that eases regulations for SpaceX's commercial rocket launches. This move is a huge win for Musk's space company, effectively clearing the path for faster, more frequent launches and cementing its dominance in the commercial space race.

The future is anything but certain, but one thing is clear: in this new political era, both Tesla and SpaceX are in for a wild ride.