Tesla’s Market Cap Surpasses $1 Trillion Following Trump’s Election Win
Tesla’s stock is on a meteoric rise, with its market cap now exceeding $1 trillion after this week. This surge in value comes as investors speculate on potential support for Tesla under Donald Trump’s upcoming presidential term, following his recent election victory.
Elon Musk, the CEO of Tesla, has been a vocal supporter of Trump’s campaign, contributing over $130 million to his re-election efforts. In Trump’s victory speech, he lauded Musk as a “super genius” for his achievements, particularly with SpaceX and Starlink.
Industry experts believe that Tesla’s recent spike in value is not merely coincidental. Daniel Ives, managing director at Wedbush, predicts that Tesla’s self-driving technology is poised to make significant advancements, potentially adding a trillion dollars in value to the company.
“Autonomous is going to get fast-tracked in our opinion, and that is significant,” Ives stated in an interview with Yahoo! Finance. “That’s worth $1 trillion alone in terms of the AI piece to Tesla, and that’s why for Musk, the bet on Trump, it’s a poker move for the ages.”
Market analyst Gene Munster also sees Tesla’s recent growth as more than just hype. “Tesla’s stock is up 44% over the last 12 trading days, compared to the Nasdaq’s 4% increase,” Munster shared on X. “This is more than just a meme stock. The accelerating delivery growth next year, and the long-term opportunity around autonomy, will drive the fundamentals that should lead to further price appreciation.”
Moreover, speculation is rife about Musk’s potential role in the new administration. Trump has mentioned the possibility of appointing Musk to head a new “Department of Government Efficiency,” abbreviated as D.O.G.E., with a focus on reducing federal spending by $2 trillion. With these developments, it seems like there is no end in sight for Tesla’s upward trajectory.