Bitcoin Boom and 2 More Ways Elon Musk Could Impact the Stock Market in 2025
Written by
Chris Ozarowski
Edited by
Jenna Klaverweiden
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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.
Here are a few potential ways Musk could shake up the stock market in 2025.
Cryptocurrencies Coming to X’s Payment Platform
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.
Tesla Stock Dropping If Investors Lose Confidence
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.
DOGE Budget Cuts Affecting Companies With Government Contracts
The White House’s Department of Government Efficiency, or DOGE, aims to reduce federal spending by cutting contracts that it considers wasteful. Led by Musk in a temporary government role, DOGE focuses on expenses that it believes do not align with current policy goals.
If DOGE cancels or scales back many existing federal contracts, companies that depend on these contracts could lose a big slice of their income. Smaller tech firms that support government agencies with software or human resource services might feel the impact first. Larger corporations with ongoing federal deals — such as defense, transportation or infrastructure projects — could also see long-term damage if enough of their contracts face cancellation or delays.
If companies signal that their government revenue has dropped, investor confidence may weaken, leading to falling share prices. Some contractors could try to pivot to private-sector deals, but sudden changes in their income streams can still unsettle shareholders.
For investors, understanding a company’s exposure to government contracts and keeping tabs on DOGE’s decisions may be an important part of managing market risks going forward.
Careful Research and a Balanced Approach
Musk’s plans and public statements may grab headlines, but they also remind us how swiftly markets can shift. Investors who stay alert to potential policy changes, new technologies and sudden pivots stand a better chance of protecting their money.
As always, careful research and a balanced approach to risk remain the best ways for everyday people to handle potential surprises in 2025 and beyond.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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