Tesla shares rose 14% on Wednesday following the victory of President-elect Donald Trump — whose campaign was openly supported by the electric-car maker’s CEO Elon Musk.
Musk’s Tesla surged like Trump’s on Wednesday morning Prediction of winning the presidency With 277 electoral votes.
The billionaire tech founder donated millions to a pro-Trump PAC, rallying on the former president’s behalf and motivating Americans to vote early with a $1 million daily sweepstakes.
Tesla shares have gained 15.3% so far this year, including Wednesday’s surge, while the S&P 500 has gained 24.5% over the same period.
Trump has said he would consider eliminating tax credits for electric vehicle purchases, which could hinder sales of EV makers.
But Wedbush Securities analyst Dan Ives said in a note to clients that a Trump victory would still have a largely positive impact for Tesla and Musk.
“Tesla has the scale and scope that is unmatched in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidized environment, as well as potentially higher China tariffs that could deter cheaper Chinese EVs.” Will keep pushing players away. (BYD, Nio, etc.) will flood the US market in the coming years,” he said.
Ives said Trump may also pursue some autonomous initiatives for Tesla and Waymo cars.
“We believe a Trump victory could add $40-$50 per share to Tesla stock if autonomous/FSD is accelerated in 2025 and there is a tailwind for CyberCab,” the analyst said.
Meanwhile, clean energy stocks fell Wednesday morning as investors worried Trump would undo climate and environmental policies.
Last month, according to Forbes, Musk – the world’s richest man with a net worth of $281 billion – donated a massive $75 million to America PAC, the pro-Trump political action committee he founded earlier this year. .
On X, the social media platform formerly known as Twitter Musk acquires in 2022The Tesla founder has over 200 million followers. His account links to a profile for America PAC, which says it champions “secure borders, sensible spending, safe cities, a fair justice system, free speech and self-protection.”
Musk is hosting it from October 19 $1 million free gift every day For Americans who sign a petition supporting freedom of speech and the right to bear arms. To be eligible for the six-figure prize, participants must be registered to vote.
The voter lottery was one of Musk’s strategies to boost Trump in reclaiming the White House.
last month, Techies jump with joy on stage When he joined the former president at a Pennsylvania rally. Musk held a solo event in the swing state to encourage Americans to vote early. That said, she also planned to spend election night with the former president at his Mar-a-Lago residence Post coverage,
Trump has vowed to appoint Musk as chief New Department of Government Efficiencyor DOGE – a reference to the popular memecoin.
during a speech in Trump’s October rally at Madison Square GardenMusk claimed he could save the federal budget $2 trillion as part of the Government Efficiency Commission.
“Your money is being wasted and the Department of Government Efficiency will fix it,” he said. “We’re going to get the government off your back and out of your pocketbook.”
