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

Introduction

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.

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.