As the U.S. presidential election approaches, Elon Musk spends one million dollars a day to support

Elon Musk, a well-known American entrepreneur, has recently attracted global attention again. According to reports, he fully supports Republican presidential candidate and former president Donald Trump in this year’s U.S. presidential election. In key “swing states” such as Pennsylvania, he has launched a “big move” - randomly selecting a voter who participates in the petition activity he initiated every day and giving one million dollars for free. This news has shocked the market, and Musk’s support for Trump has also triggered discussions about whether Tesla stocks are still worth buying. Tesla’s market value is often closely related to Musk’s personal words and deeds. Therefore, for investors, understanding the potential impact behind this event is particularly important.

This article will discuss Musk’s support for Trump from multiple angles and its potential impact on Tesla stocks, so as to provide some decision-making references for investors.

Background: Musk’s million-dollar “lottery” activity

According to reports, Musk launched an online petition activity through the “American Political Action Committee” he established, calling for support for freedom of speech and the right to bear arms. According to the activity rules, from October 19 until the presidential election voting day on November 5, voters in seven key “swing states” of Pennsylvania, Arizona, Georgia, Michigan, Nevada, North Carolina, and Wisconsin will have a chance to win one million dollars every day. In the first three days of the activity, the lottery qualification is limited to voters in Pennsylvania.

On October 19 and 20, a voter in Harrisburg and Pittsburgh, Pennsylvania, respectively, received a one-million-dollar check. In addition to the million-dollar grand prize, Musk also launched an activity in Pennsylvania where “participating in the petition can get 100 dollars, and referring one more person can get another 100 dollars.” In other “swing states”, petition participants can also get a reward of 47 dollars. What is Musk’s motivation behind such a generous support for Trump? What kind of impact will this move have on Tesla’s stocks?

Motivation behind Musk’s support for Trump

First of all, it is necessary to understand why Musk would choose to support Trump so publicly. In fact, Musk has always been known for his wavering political stance. He has supported environmental protection policies, criticized excessive regulation, and even publicly supported a lax policy on the COVID-19 pandemic. The move to support Trump can be seen as his recognition of free economic policies.

During Trump’s tenure, he has always advocated tax cuts and reduced government intervention, which coincides with the corporate freedom concept that Musk has always advocated. In addition, Trump’s “America First” policy may coincide with some of Musk’s business interests. Especially in the manufacturing field, Tesla has benefited from many encouraging measures of the Trump administration when building factories in the United States and increasing local employment.

Another reason for supporting Trump may be that Musk wants to protect his business empire from the impact of certain policies by influencing politics. With the continuous adjustment of American new energy policies, Musk hopes to ensure that the future development of Tesla will not be limited by government regulatory policies. Especially when the Republican Party may regain power again, Musk’s move can bring a certain degree of policy protection to him.

Market performance of Tesla stocks: Risks and opportunities

Musk’s behavior has always had a direct impact on the performance of Tesla stocks. It can be said that Tesla’s stock price is not only linked to its electric vehicle sales and profits but also closely connected to Musk’s personal image and behavior. And this time Musk’s public support for Trump has brought greater uncertainty to the market’s outlook for Tesla.

Risk factors: Uncertainty brought by Musk’s personal behavior

First of all, Musk’s political support may cause fluctuations in Tesla’s brand reputation. One of Tesla’s main customer groups is those consumers who value environmental protection and sustainable development concepts. Trump’s stance on environmental protection policies is relatively lax and he even withdrew from the Paris Climate Agreement at one point, which is contrary to Tesla’s corporate mission. Therefore, Musk’s behavior may cause some potential customers to lose their favor for Tesla.

In addition, Musk’s public statements in politics may also attract the attention of regulatory authorities. In some countries, overly close political-business relations are often subject to strict scrutiny, which may bring additional compliance risks to Tesla. For example, the Biden administration has launched a large number of incentive policies in the new energy field. At this time, Musk’s support for his opponent may to a certain extent affect Tesla’s priority in policy support in the future.

Opportunity factors: Policy inclination and corporate freedom

Although there are certain risks, Musk’s move may also bring potential opportunities. If the Republican Party wins in the future elections, tax cut policies and measures to relax regulation may benefit Tesla’s production and sales in the United States. In addition, Trump advocates relaxing environmental protection requirements for enterprises, which also means that Tesla can reduce some compliance expenditures. Especially in the process of new product research and development, it can have greater experimental freedom.

Musk has always had an adventurous spirit. His public support for Trump can be regarded as his bet on the future macroeconomic and political environment. If this strategy works, Tesla may be able to obtain better development opportunities in a policy-relaxed environment. Especially in the highly competitive American market with other automakers, policy inclination may become a key factor for Tesla to continue to maintain its leading position.

How should investors respond?

For investors, Musk’s political statements and Tesla’s stock price fluctuations are already a familiar story. Investors need to realize that although Musk’s personal behavior will affect market sentiment, Tesla’s long-term investment value still mainly comes from the performance of its core business. Here are some suggestions to help investors better deal with the current situation:

Focus on company fundamentals

Tesla’s core competitiveness lies in its technological innovation and capacity expansion. From breakthroughs in battery technology to the continuous improvement of autonomous driving systems, Tesla’s leading position in technology is still the basis for the company’s long-term value. Investors should pay more attention to company fundamental data such as quarterly deliveries, profit margins, and cash flow, rather than being influenced by short-term political factors.

Avoid overreacting and rationally allocate investment portfolios

Tesla’s stock price fluctuations are often large, and Musk’s remarks have exacerbated this volatility. Therefore, investors should remain calm and avoid making impulsive decisions due to momentary market sentiment. If you are worried about the fluctuation risk of Tesla’s stock price, appropriately diversifying investments in other industries or competitors in the new energy field can reduce the risk of the overall investment portfolio.

Long-term holding vs. short-term arbitrage

For long-term investors, Tesla’s market positioning, innovation ability, and strategic layout in the new energy field still have strong appeal. Therefore, Musk’s political stance may bring fluctuations in the short term, but in the long run, as a leader in the electric vehicle industry, Tesla still has stable growth potential.

For short-term investors, they can take advantage of the stock price fluctuation opportunities brought by political news for arbitrage operations, but this strategy requires a higher risk tolerance and an accurate grasp of market rhythms.

Is Tesla stock worth buying?

The news that Musk spends one million dollars a day to support Trump has indeed caused quite a stir in the market. But for investors, the key is still to return to Tesla’s fundamentals. Tesla is still a company with leading advantages in the fields of electric vehicles, energy storage, and autonomous driving, with a huge technological moat and brand effect.

Musk’s political behavior may affect market sentiment in the short term and bring certain uncertainties, but this risk is not uncontrollable. When evaluating Tesla’s investment value, investors should comprehensively consider its technological strength, market prospects, and the impact of Musk’s personal behavior on the company’s image. If you are sensitive to short-term risks, you can choose to wait and see and make a decision after the market sentiment stabilizes. If you are optimistic about Tesla’s long-term growth potential and are willing to bear certain fluctuation risks, then now can still be regarded as a reasonable entry point.

For Tesla, Musk’s personal touch undoubtedly brings unlimited topicality to the company. But it is precisely this controversial and innovative leadership style that makes Tesla unique in the market. For investors, rational evaluation and not being influenced by emotions are the best ways to deal with Musk’s behavior and Tesla’s stock price fluctuations.

How to buy Tesla stocks without a U.S. dollar bank account?

You can buy Tesla stocks through various channels even without a U.S. dollar bank account. Charles Schwab and BiyaPay are two different financial service platforms with their own characteristics. Here are the detailed introductions:

Charles Schwab

Charles Schwab is a well-known online securities brokerage company in the United States. It mainly provides securities trading, financial consulting, and investment management services for individual investors and institutions. Even if you don’t have a U.S. dollar bank account, Charles Schwab can help you invest in U.S. stocks.

Characteristics:

International account support: Charles Schwab provides users with a bank account with the same name.

How to operate: Even if you don’t have a U.S. dollar account, you can transfer funds to the bank account with the same name provided by Charles Schwab for users through the foreign currency transfer function of other local banks, and then you can buy Tesla stocks.

BiyaPay

BiyaPay is a multi-asset trading wallet. BiyaPay uses USDT as the medium and supports recharging USDT to exchange for dollars. It covers the mutual exchange of more than 20 legal currencies and more than 200 digital currencies, providing users with safe and fast international remittance services.

BiyaPay also supports direct trading of U.S. stocks and Hong Kong stocks using USDT. Users can participate in real-time stock trading without applying for an offshore account and realize real-time deposit and withdrawal of funds. With one account and one sum of money, users can easily invest in the global market, including U.S. stocks, Hong Kong stocks, and digital currencies.

Through its integrated multi-functional platform, BiyaPay combines U.S. and Hong Kong stock investment with digital currency trading to provide users with comprehensive and convenient financial services.

Characteristics:

Convenient international remittance and U.S. and Hong Kong stock trading: BiyaPay uses digital currency as the medium and supports recharging digital currency such as USDT to exchange for dollars, Hong Kong dollars and other legal currencies to the user’s bank account. It also supports recharging USDT to trade U.S. stocks and Hong Kong stocks.

How to operate: You can recharge digital currency usdt on BiyaPay, and then directly transfer the exchanged dollars to Charles Schwab or your own bank account to conduct U.S. stock trading. Or conduct stock trading directly on BiyaPay.

Against the background of Musk’s public support for Trump, Tesla’s stock price may face fluctuations in the short term, but its long-term investment value still depends on its technological innovation and market strategic layout. Investors should analyze rationally and avoid overreacting due to market sentiment. When facing the risks brought by Musk’s personal behavior, it is important to pay attention to Tesla’s fundamentals and technological advantages. Tesla’s leading position in the electric vehicle and energy fields makes it maintain strong market competitiveness. Therefore, for investors with high risk tolerance and who are optimistic about the long-term prospects of new energy, Tesla is still one of the targets worthy of attention. Whether through traditional Charles Schwab accounts or digital platforms such as BiyaPay, investors have the opportunity to participate in Tesla, a company full of vitality and future potential.