Trump’s victory triggered a rapid rise in Tesla shares – the company is already worth more than $1.11 trillion

Tesla shares rose 8% today, continuing the strong growth that began last week after the US elections. Analysts attribute this to Tesla CEO Elon Musk’s close ties with US President-elect Donald Trump. In total, shares have jumped nearly 28% since Trump’s victory was announced last week, with the company’s market value topping $1 trillion for the first time in two years.

Image source: SpaceX

The stock is currently priced at $348.30. Experts believe that if the growth rate continues, Tesla will add almost $87 billion to its value in a single day of trading. It is worth noting that from the beginning of the year before Trump’s victory was announced, Tesla shares barely exceeded 1%.

Analysts say Musk has supported Trump for months in the belief that close ties to the president-elect would allow his companies to benefit under the new administration. According to federal reports, Musk has invested at least $119 million in Trump’s campaign. Trump announced in September his intention to create a government efficiency commission headed by Musk to reduce federal spending.

Trump intends to cut some incentive programs for electric vehicles previously provided by the Biden administration. Analysts say upstart automakers will suffer more from these measures than Tesla due to the company’s dominance in the electric car market.

Image source: Reuters

From Tesla electric vehicles to SpaceX rockets to Neuralink brain chips, Musk’s business projects rely heavily on government regulation, subsidies or politics. Tesla’s self-driving technology is also under regulatory scrutiny. Musk’s potential influence in government could be significant for his other projects such as Starlink, thanks to his role as a major contractor for the US Department of Defense.

List of Elon Musk’s connections with US government agencies

«As an “efficiency czar,” Musk is likely to see this as an opportunity to cut red tape and simplify regulation, potentially helping his companies at the forefront of technological innovation,” says Suzanne Streeter, head of finance and markets at Hargreaves Lansdown. Susannah Streeter). She suggested that Musk’s claims of “preferential treatment” could end in lawsuits, but given the length and complexity of such a process, Musk’s businesses have plenty of time to benefit.