Analyzing The Financial Impact Of The Trump-Musk Interview Gateway For Research In Finance Dissertation Writing
Analyzing The Financial Impact Of The Trump-Musk Interview Gateway For Research In Finance Dissertation Writing
On August 12, 2024, Elon Musk hosted a prominent interview with former President Donald Trump on X’s Spaces, a live audio chat platform that attracted around 1.3 million listeners. The two-hour discussion covered inflation, immigration, energy policies, and the U.S. economy. Despite the high-profile nature and extensive media coverage of the interview, the immediate effect on Tesla Inc. (TSLA) and Trump Media & Technology Group (DJT) stock prices was minimal, raising concerns among economists and investors about the financial impact of such high-profile discussions.
Our Finance Dissertation Writing Services identify that this situation serves as a valuable gateway to finance dissertation research in both the United States of America (USA) and global intellectual dimensions. It offers unique insights for finance dissertation writing services to explore how high-profile media events influence market dynamics and investor sentiment.
Radical Instantaneous Market Reactions
Following the interview, Tesla Inc. (TSLA) saw a notable decline in its stock price. On August 13, 2024, Tesla’s shares dropped by 3.7%, continuing a broader downward trend from a peak of $271 on July 11, 2024, to a 26% decrease. This decline suggests a significant immediate impact, albeit not substantial, highlighting the need for further analysis.
Research Gaps and Future Scope:
- Quantitative Impact Assessment: More rigorous quantitative analysis is needed to understand how high-profile events influence short-term stock price fluctuations. Future research should use econometric models to measure these effects.
- Longitudinal Analysis: Studies should investigate whether such declines are temporary or contribute to longer-term trends to better understand stock resilience to media events.
Trump Media & Technology Group (DJT)
In contrast, the stock of Trump Media & Technology Group (DJT), which includes the Truth Social platform, fell by 3.6% on August 13, 2024. This drop continued a trend of losses, with DJT’s stock value halving since its March debut. Despite various external factors, the company's financial performance has been disappointing, with recent revenue reports indicating less than $1 million.
Research Gaps and Future Scope:
- Platform Viability Analysis: Detailed research into the financial health and business model of emerging media companies like DJT is necessary to assess their long-term viability. Future studies should focus on revenue streams and business models of similar platforms.
- Effect of Media Strategy on Stock Performance: Researching the impact of media strategies on stock performance could shed light on how different platforms influence investor sentiment.
Economic Management and Inflation
During the interview, Trump criticized U.S. inflation, describing it as a severe crisis that has "decimated" American consumers. He argued that inflation results from excessive government spending. Musk countered by attributing inflation to unchecked government spending and proposed a “government efficiency commission” as a solution, suggesting that increased money supply drives up prices.
Research Gaps and Future Scope:
- Evaluation of Policy Proposals: Empirical research is needed to evaluate the effectiveness of proposals like Musk’s “Government Efficiency Commission” in managing inflation. Future studies could assess historical precedents and practical implications.
- Impact of Political Discourse on Inflation Perceptions: Research could explore how political discourse shapes public perceptions of inflation and how these perceptions affect investor behavior.
Energy Policies
Trump advocated for reducing energy prices by increasing domestic oil production and supporting nuclear power, proposing new oil pipelines and drilling in areas like the Alaskan National Wildlife Refuge (ANWR). In contrast, Musk emphasized sustainability and the need for continued use of fossil fuels during the transition to greener energy sources. He warned that over-regulation could lead to shortages and increased costs. These divergent views impact investor interests in traditional versus renewable energy sources.
Research Gaps and Future Scope:
- Impact of Energy Policy Debates on Market Volatility: Future research could explore how debates on energy policies affect market volatility, especially in energy-related stocks.
- Long-Term vs. Short-Term Effects of Energy Policy: Studies should investigate the long-term versus short-term effects of different energy policies on stock performance and industry health.
Immigration and Economic Impact
Trump’s discussion on immigration focused on securing borders and addressing illegal immigration, suggesting that improved immigration policies could benefit legal residents economically. These statements impact stock performance and investor sentiment, particularly about U.S. labor markets and economic stability. The decline in DJT’s stocks and Tesla’s share volatility following the interview highlights the influence of political discussions on market conditions.
Research Gaps and Future Scope:
- Link Between Immigration Policy and Market Performance: More research is needed to understand how political statements on immigration impact stock performance and investor confidence. Historical data could be examined to establish this relationship.
- Investor Sentiment Analysis: Future studies should explore how changes in immigration policy affect investor sentiment and stock volatility, especially in labor-dependent sectors.
Futuristic Investigations
The interview’s subdued immediate impact on DJT and Tesla stock prices suggests a complex relationship between political discourse and financial markets. The discussions on economic management, energy policies, and immigration have opened avenues for deeper research into the interplay between political events and market dynamics. To understand these impacts fully, interdisciplinary research combining political science, economics, and finance is essential. Longitudinal studies could provide insights into the long-term effects of media events and public figures' statements on financial markets.
Research Gaps and Future Scope:
- Interdisciplinary Research: Research combining political science, economics, and finance is needed to understand the impact of high-profile public discussions on stock market performance.
- Longitudinal Studies on Media Influence: Conducting longitudinal studies to assess the long-term impact of media events and public figures' statements on financial markets could offer deeper insights into their true effects.
The second, non-consecutive term for President Donald Trump, which began on 20 January 2025, is being coordinated with the economic strategies of Elon Musk for the period 2026 to 2030. Both expect an acceleration of economic growth and an increase in the efficiency of government. However, their approaches are focused on trade protectionism, fiscal restraint, deregulation, and spending cuts, which will significantly affect growth, inflation, confidence in the markets, and the performance of various sectors.
Economic Growth and Fiscal Policy
Trump’s Tariffs and Trade Policies:
The current estimates suggest that the imposition of the trade policies of Trump would result in the addition of $399 billion to the revenues of the US, and the appropriation of the economic system of the opponent in a manner that the OECD has downgraded the projections of the growth of the US GDP from about 2.8% in 2024 to about 1.5% to 1.6% in 2025-2026 on account of the higher costs of trade which adversely affect consumption and investment.
The imposition of such policies increases the likelihood of disruption in the supply chains, an increase in consumer prices and a decrease in growth of the overall economy. Government reports suggest that the costs associated with cross-border trade and the import of goods such as energy and manufactured goods are becoming increasingly volatile.
Cuts in Taxes:
Modest fiscal stimulus policies which broaden the length of and the Tax Cuts and Jobs Act have been discussed along with cuts in the regulations for the financial sector and the protection of the environment. Economists have lowered the current US GDP growth projections by under 0.2%, hence in 2026 the estimates will be $2.2 trillion.
The growing concerns of inflation and frugal immigration policies might somewhat attenuate the realisation of gains by stanching labour force growth.
From Musk Influence Spending Cuts and Budget Efficiency:
Directly under the guidance of Elon Musk, the Department of Government Efficiency (DOGE) advocates for the reduction of the federal budget by at least $2 trillion in an effort to control the growth of the national deficit, while slashing what is deemed as wasteful spending.
This spending, solely directed across federal programmes, has culminated in expenditure savings in the regions of some federal functions and even the slashing of USAID, leading to debates on the social defence as well as the programmes auxiliary to the core of national priorities.
There is considerable political and academic scepticism about the practicality and effects of such swift fiscal tightening on the economy’s instability.
Inflation and Monetary Policy
The amalgam of tariffs, deregulation, and conflicting signals of fiscal policies is expected to sustain inflation well above the target at about 2.5%–3% for the years up to 2026, posing challenges to the Federal Reserve’s growth and price stability dual mandate.
The Fed expects interest rates to be cut three times in 2025 and would like to ease as slowly as possible afterwards to avoid the risk of growth and inflation exceeding the desirable limits.
Trade Data
With the commencement of the Trump administration in 2025 and the efficiency of the Musk government, the second term becomes the period of the complex policy of the protective trade system, the fiscal stimulation of growth, the stimulation of expenses to the aggressive bottom line, and lowering regulatory control.
With optimism in control of the financial markets, the tax and regulation relief will bring growth and an increase in market sentiment, and the sustained headwinds will include stimulants, fiscal austerity, tariff impacts, and inflationary pressures.
Volatility will heighten during the period of 2026 to 2030, reflecting the impacts of the net effectiveness and sustainability of the policies and the US economy in regulating the global economy.
Summary Table of Key Economic Effects
| Effect | Projection / Impact | Source |
| US GDP Growth (2025–26) | 1.5%–1.6%, down from 2.8% in 2024 | OECD |
| Inflation Rate | Elevated near 2.5%–3% through 2026 | Fed Outlook |
| Financial Market Volatility | Increased due to tariff and policy uncertainty | Market Reports |
| Energy Storage Deployment | Potential 15% reduction risk due to tariffs | Industry Report |
| Global Trade Volume | Drop 7% by 2030 from pre-tariff baseline | Trade Data |
References
- OECD Economic Forecast on Trump Tariffs (2025)
- Musk's Government Spending Cuts Initiative (2024)
- Reuters: Market Impact of Trump Tariffs & Musk Plans (2025)
- Aberdeen Investments: Trump 2.0 Economic Analysis (2024)
- Utility Dive: Energy Sector Risks Under Trump Policies (2024)
- JPMorgan: Market Impact of Trump Economic Agenda (2023)
- Future Market Insights: Trump’s Economic Revival (2025)
- JPM: Market Reactions to Trump Policies (2025)
- Peterson Institute: Economic Effects of Tariffs (2025)
- Yahoo Finance: Musk Federal Budget Initiative (2025)
- Times of India: Market Volatility Under Trumponomics (2025)
- Peterson Institute: Tariff Economic Impact (2025)
- GripInvest: Global Market Impacts of Tariff War (2025)
- Baker Institute: Fiscal Policy and Debt Impact (2025)
- Times of India: Trump Tariff Shock and Fitch Warnings (2025)
- Holland & Knight Report on Trump Executive Orders (2025)
Thus, our company identifies that the aforementioned research gaps are crucial for financial researchers from the USA and around the globe. For a finance dissertation, addressing these gaps involves examining their impacts on stock prices, inflation, energy policies, and immigration, as well as short-term market reactions and investor sentiment. Utilizing our finance dissertation writing services can help in conducting rigorous quantitative and longitudinal analyses, leading to more accurate predictions and better financial strategies. Thus our finance dissertation writing services are inclined to reveal the influence of political discourse on market conditions and investor confidence can also enhance financial models and decision-making for future events.
