Tesla’s stock surged dramatically following Donald Trump’s victory in the US presidential election, propelling the company’s market cap past the $1 trillion mark and cementing Elon Musk’s status as one of the world’s richest individuals. The surge, which sent Musk’s personal fortune soaring past $300 billion, is widely attributed to the CEO’s unwavering support of Trump and the potential for accelerated growth in the autonomous vehicle sector under a Trump administration.
Analysts, like Wedbush’s Dan Ives, believe Musk’s support for Trump was a strategic move, a “poker move for the ages.” Ives predicts a fast-tracked development of the autonomous vehicle sector, a market that could be worth $1 trillion for Tesla’s AI segment alone. “Autonomous is going to get fast-tracked in our opinion, and that is significant,” Ives said on Yahoo Finance, emphasizing the potential windfall for Tesla.
The optimism surrounding Tesla’s future isn’t limited to Wedbush. Gene Munster, managing partner at Deepwater Asset Management, highlighted Tesla’s impressive 44% rally over the past 12 trading days on the social media platform X, formerly Twitter. “This is more than just a meme stock,” Munster wrote. He attributed the rally to Tesla’s accelerating delivery growth and the long-term potential of the autonomous vehicle market, which he believes will drive future price appreciation.
The connection between Tesla’s stock rise and Trump’s victory is undeniable. Investors are bullish about the potential for a Trump administration to favor the electric vehicle industry, particularly with Musk’s prominent role in the campaign. Trump’s victory speech even included a dedicated four-minute tribute to Musk, praising him as a “super genius” and highlighting his achievements with SpaceX and Starlink.
Beyond his role in the campaign, Musk has expressed interest in leading a proposed Department of Government Efficiency, aimed at reducing federal waste. Trump has even suggested Musk for the position of “Secretary of Cost-Cutting,” underscoring the potential for a close relationship between the two figures.
While Tesla’s third-quarter revenue of $25.18 billion reflected an 8% year-over-year increase, it fell slightly short of Wall Street’s expectations. However, the stock’s meteoric rise in the wake of Trump’s victory clearly indicates that investors are confident in the company’s future under a Trump administration. Tesla shares closed Friday’s session with an 8.19% gain, reaching $321.22, and continued to climb in after-hours trading.
The relationship between Elon Musk, Tesla, and Donald Trump is a complex one, but it is clear that Trump’s victory has injected a wave of optimism into the electric vehicle industry, particularly for Tesla. It remains to be seen how this relationship will play out in the long term, but the immediate impact on Tesla’s stock price is undeniable.
