Autonomous vehicles, robotics, space, and AI – these are the industries that Elon Musk cares about most. And for that reason, we think the stocks therein could succeed enormously in 2025 and ‘26.
That’s because the world’s richest man has allied himself very closely with President-elect Donald Trump. And as a result, he has been named the head of the soon-to-be Department of Government Efficiency. His sphere of influence, if you will, seems likely to grow significantly to arguably unprecedented levels in 2025.
What will he do with that authority?
Probably a lot. But among some of the things he’s likely to do is support the industries in which he does a lot of business.
Indeed, this appears to already be happening with Tesla (TSLA), his biggest company.
With the reveal of its Cybercab and Cybervan – the firm’s two self-driving models – Tesla has recently pivoted toward becoming an autonomous vehicle company. Now Musk’s big vision is for Tesla to operate its own fleet of robotaxis to autonomously transport folks all over the place.
And just this past weekend, reports leaked that the Trump administration is considering easing regulations on self-driving cars to make it easier for companies like Tesla to roll out such self-driving fleets.
Of course, if those regulations are reduced, we’ll see rapid growth across the whole autonomous vehicle industry, including at Tesla, Musk’s crown jewel.
And we think that is merely a microcosm of what could happen in 2025 and ‘26.
The Elon Musk Playbook for 2025
Here’s what we anticipate as Musk assumes a position of power within the next administration.
He’ll likely exert his sphere of influence to help pass legislation that benefits the various industries in which he does business. Those industries will experience rapid growth, and many of the businesses therein will see enormous success.
So… maybe the best investment strategy for 2025 is to just follow Elon Musk.
What does that strategy entail?
Well, beyond Tesla, Musk is also the founder of SpaceX – the world’s largest private space firm. And we think it’s entirely possible that over the next few years, we’ll see a push to increasingly privatize space travel and exploration. In turn, that could lead to an increasing number of space business contracts for companies like SpaceX, Rocket Lab (RKLB), Planet Labs (PL), AST SpaceMobile (ASTS), and others.
That means those space stocks could see huge success in 2025.
Then there’s X, formerly known as Twitter. The company has been in financial mayhem ever since Musk acquired it. But pro-free-speech policies to be enforced in the coming years could bring users and advertisers back to the platform.
And returning to Tesla… Elon Musk is also focused on developing a humanoid robot called Optimus, which he thinks could be the firm’s most valuable product at scale. As such, it’s possible we’ll soon see some legislation that promotes robotics adoption. That could result in a major boost for related stocks, like Symbotic (SYM), PROCEPT BioRobotics (PRCT), and more.
The Final Word
But, perhaps above all else, we expect that the U.S. government will pass legislation to further incentivize spending on artificial intelligence.
That’s because arguably Elon Musk’s most important and promising business is his AI startup, xAI, which is designing a ChatGPT-like bot called Grok.
That company just closed a new fundraising round valuing it at $50 billion. That company was founded in early 2023 – meaning it took xAI less than two years to be worth more than Ross Stores (ROST), BMW (BMWKY), Electronic Arts (EA), Discover Financial Services (DFS), Ford (F), and 7-Eleven.
Given xAI’s success, the AI Boom, Musk’s closeness to Trump, and more – we think it’s highly likely that the stage is set for xAI to grow tremendously in 2025.
Now, of course, xAI isn’t a publicly traded company. It’s not one you’ll be able to add directly to your portfolio.
But as it happens, we’ve found a “backdoor” way to invest in the promising new startup.
Click here to learn all about that play right now.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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