US Markets
Monday, October 7th, 2024 4:48 pm EDT
Key Points
- Trump Media shares soared by 15% on Monday following a rally in Butler, Pennsylvania, where former President Trump appeared with Elon Musk, who endorsed Trump and called himself “Dark MAGA.”
- Elon Musk has become a key supporter of Trump, forming a pro-Trump PAC and proposing a government efficiency commission that Trump said he would establish if elected, with Musk potentially leading it.
- Trump Media has faced challenges including a declining stock trend, the resignation of COO Andrew Northwall, and a legal ruling requiring the release of nearly 800,000 shares to an early investor after breaching an agreement.
Shares of Trump Media surged by approximately 15% on Monday, following former President Donald Trump’s rally in Butler, Pennsylvania, with Tesla CEO Elon Musk. This rally, marking Trump’s return to the site of his July 13 assassination attempt, saw Musk publicly support Trump’s presidential bid. Musk not only expressed his backing but referred to himself as “Dark MAGA,” emphasizing the importance of Trump’s victory to preserve the Constitution and democracy in America. Since the assassination attempt, Musk has been an active advocate for Trump’s campaign, even creating a political action committee, America PAC, which was previously under investigation but faced no further action.
Trump, in return, mentioned plans to create a government efficiency commission proposed by Musk, should he be elected president, with Musk potentially leading it. Trump Media’s success remains heavily reliant on the former president’s popularity and his active engagement with Truth Social, a platform where Trump holds a 57% ownership stake.
Despite this recent rally in share prices, Trump Media has faced financial and internal challenges. Shares of the company had previously hit a 52-week low on September 23 after a period of decline following Trump’s assassination attempt. The company has also been dealing with internal turbulence, most notably the resignation of chief operating officer Andrew Northwall in late September. Moreover, a Delaware judge ruled that Trump Media must release nearly 800,000 shares to an early investor after breaching an agreement, adding further complications for the company. Nonetheless, the recent rally highlights the strong influence of Trump’s public appearances and endorsements, which have helped the company recover from its earlier financial setbacks.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/10/07/djt-trump-media-elon-musk-butler-rally.html
