Elon Musk Reportedly Pledges $100 Million To Trump-Linked Political Groups Amid Billion-Dollar Losses In His Net Worth

Tesla (NASDAQ:TSLA) and SpaceX CEO Elon Musk, who also serves as a consultant to the White House, has reportedly indicated plans to donate $100 million to organizations aligned with the Trump political network.

What Happened: Three insiders have confirmed Musk’s plans, as reported by the New York Times. This move is unusual, as it’s uncommon for a White House staffer to make this massive political donation, according to the report. However, Musk, who is leading President Trump’s ambitious initiative to reduce the size of the federal government through the Department of Government Efficiency (DOGE), is an exception.

Tesla did not immediately respond to Benzinga’s request for comment.

Musk was seen with President Donald Trump on Air Force One en route to Florida over the weekend. He later shared a post about a dinner with Secretary of State Marco Rubio on his social media platform, X.

While Musk has previously made significant donations to his own super PAC, America PAC, he now reportedly plans to donate to an external entity associated with the president. Trump’s political team has established two organizations: MAGA Inc., a super PAC, and Securing America’s Greatness, a political nonprofit. The specific recipient of Musk’s donation is yet to be determined.

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Why It Matters: This development comes at a time when Elon Musk’s net worth plummeted by $185 billion from its December peak. Notably, Musk lost $29 billion in a single day as Tesla’s stock plunged 15% on Monday, marking its worst decline since a 21% drop in September 2020. This move could be seen as an effort to demonstrate his commitment to the Trump administration, despite criticism that he is catering to his own interests.

Amid global protests against Musk’s electric vehicle company, Tesla Inc, President Trump endorsed and purchased a Tesla car at ‘full price’ on Tuesday at the White House with Musk in attendance. According to Gary Black, Managing Partner of The Future Fund LLC, the President’s recent acquisition of a Tesla Model S Plaid for use by White House staff could significantly increase the electric vehicle manufacturer’s sales. He wrote on X that “President Trump's endorsement of Tesla today is potentially HUGE.”

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.