Tesla’s market capitalisation surpassed $1 trillion as its shares increased by over 9% during Friday afternoon trade.
Given that Donald Trump won the U.S. presidential election and that investors are hopeful that the previous leader’s return to the White House will help Tesla, the company’s stock has increased by almost 27% this week.
Tesla CEO Elon Musk has been a crucial Trump booster during his campaign, contributing at least $130 million to a pro-Trump campaign.
The market value of Tesla was $807.1 billion as of Tuesday’s closure. Prior to the rise this week, the automaker’s stock was up roughly 1% year-to-date. To date, Tesla’s stock has increased by almost 29%.
With its current valuation of over $1 trillion, Tesla joins a growing group of tech companies that include Nvidia, Apple, Microsoft, Alphabet, Amazon, and Meta (though all but Meta are valued over $2 trillion). It wasn’t until October 2021 that Tesla’s market capitalisation surpassed $1 trillion. A possible Trump presidency might mean less regulation for Tesla and other businesses.
“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 an environment without EV subsidies.”
Higher tariffs on China are likely to force cheaper Chinese EV players (BYD, Nio, etc.) to stay out of the U.S. market in the years to come Ives sent out a notice to customers this week.
Source (CNBC)
