With an 8% increase in shares on Friday November 8, Tesla’s market capitalization surpassed $1 trillion.
As investors wager that a possible Trump administration will favor Tesla and CEO Elon Musk, the stock has been soaring this week.
Musk gave more than $130 million to help Trump win the election and was his most outspoken campaign advocate.
Following Donald Trump’s victory in the U.S. presidential election, the company’s stock has increased by roughly 29% this week as investors have grown hopeful that Tesla will benefit from the former leader’s return to the White House.
Throughout his campaign, Elon Musk, the CEO of Tesla, has been a crucial ally of Trump, investing at least $130 million in a pro-Trump campaign during his tenure.
At the close of business on Tuesday, Tesla’s market value was $807.1 billion. The carmaker’s stock was up around 1% for the year prior to this week’s rally. To date, Tesla’s stock has increased by roughly 30%.
Along with Nvidia, Apple, Microsoft, Alphabet, Amazon, and Meta (all of whom are worth more than $2 trillion), Tesla joins an expanding group of tech companies that are now valued at more than $1 trillion.
In October 2021, Tesla’s market capitalization surpassed $1 trillion for the first time.
According to Dan Ives, an analyst at Wedbush Securities, a Trump administration might mean less regulation for businesses like Tesla.
Trump has previously hinted that he might eliminate the federal $7,500 tax credit for electric vehicles. In the past, those credits have boosted sales of Tesla automobiles.
Tesla reported $25.18 billion in revenue and $2.17 billion in net income for the third quarter in its most recent earnings report.
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For over ten years, Tesla has been developing and promising autonomous car technology. Alphabet-owned Waymo, its main rival in the US, has overtaken it and is currently running for-profit robotaxi services in a number of significant cities.
Musk stated during the third-quarter call that he would create a “federal approval process for autonomous vehicles” by using his influence with a Trump-Vance administration.
The CEO believes that once Tesla offers more than partially automated driving systems, it will have to overcome the regulatory obstacle of state-level approvals, which are currently the norm.
