Elon Musk has a history of stirring up strong reactions. He has personally caused big swings in the cryptocurrency and stock markets through posts on social media and interviews. As a result, some investors watch his moves closely, hoping to secure profits or avoid losses.
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Here are a few potential ways Musk could shake up the stock market in 2025.
Musk has often talked about turning X into something that does more than just social networking. Doing so could result in X becoming more like China’s WeChat, which lets users do nearly everything from chatting with their friends to paying their bills.
Musk wants to let users handle transactions — maybe through a built-in wallet or with a new digital coin. X has said it’s partnering with Visa to establish a payment platform, and while crypto is not a part of that, according to CNET, there’s a chance that could be coming.
Musk has influenced the crypto market before. For example, he caused the price of Dogecoin to go up after one tweet. If Musk does make Bitcoin or other cryptocurrencies a core part of X’s payment system, it might push their value higher. If payments on X manage to be cheap and fast, they could also affect rival companies like PayPal and Block, whose stock prices could slip if they begin to lose users.
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The price of Tesla’s stock has soared over the years. Tesla’s market capitalization adds up to almost half of the global car industry, per Visual Capitalist.
Many view Tesla like a tech company, not a car company. Some may think the profits will eventually catch up to the stock price when the company becomes the top dog in an electric vehicle (EV) world. However, as competitors from both the U.S. and China continue to move into the EV space, and Tesla’s sales decline, Musk has had to promise more and more to keep the stock price up. In recent earnings calls, he’s promised that autonomous robots will eventually become the company’s main product instead of EVs, and that they’ll bring massive profits.
If investors begin to doubt Musk’s promises, it could have a serious effect on the price of Tesla’s stock. If they eventually choose to value Tesla with the same rationale as other car manufacturers, the share price could fall significantly.
