- Tesla’s stock rallied more than 6% on Friday, pushing its market capitalization past $1 trillion for the first time.
- The surge comes after Donald Trump’s victory in the 2024 U.S. presidential election, with investors optimistic that a Trump administration could benefit Tesla and CEO Elon Musk, who was a vocal supporter of Trump’s campaign.
- Musk contributed over $130 million to pro-Trump efforts and is expected to have significant influence in a potential Trump administration, potentially leading to less regulation for Tesla and higher tariffs on Chinese electric vehicle competitors.
Tesla’s stock has surged this week after President-elect Donald Trump won the US presidential election. Investors are optimistic that Tesla and CEO Elon Musk will benefit under a Trump administration.
Tesla Stock Surges Past $1 Trillion Market Cap
Shares of Tesla climbed more than 6% in mid-morning trading Friday, pushing the electric vehicle maker’s market cap past $1 trillion for the first time.
The company’s stock has rallied about 27% this week following Trump’s election victory. Tesla CEO Elon Musk has been a vocal supporter of Trump, contributing over $130 million to support his campaign.
Prior to this week’s rally, Tesla shares were up about 1% for the year. The recent surge has pushed Tesla’s stock up about 26% year-to-date.
Potential Benefits Under Trump Administration
Analysts say a Trump administration could mean less regulation for Tesla and other companies.
Tesla has unmatched scale and scope in the EV industry. This dynamic could give Tesla a competitive advantage if tariffs are raised on cheaper Chinese EV competitors under Trump, according to Wedbush Securities analyst Dan Ives.
Trump has also suggested cutting the $7,500 federal EV tax credit, which has driven Tesla sales in the past.
Tesla’s Growth Prospects
In Q3 earnings, Tesla reported $25 billion in revenue and $2.1 billion in net income.
CEO Elon Musk said vehicle growth could reach 20-30% next year thanks to lower-cost vehicles and self-driving technology.
Tesla is developing autonomous driving capabilities but has lagged behind competitors like Waymo, which already operates commercial robotaxi services. Musk aims to establish a federal approval process for autonomous vehicles under Trump, which he sees as key to overcoming regulatory hurdles.
