Tesla marked a historic milestone as its market capitalization surged past the $1-trillion mark, driven by an extraordinary rally following Donald Trump‘s victory in the presidential election.
This surge in stock value, part of a broader post-election market rally, suggests investor optimism around potential benefits for Tesla and its CEO Elon Musk, who was an active supporter of Trump’s campaign.
The automaker’s shares increased 8.2 percent to $321.22 on Friday, pushing its valuation beyond $1 trillion for the first time in over two years. This week alone, Tesla’s stock rose by 29 percent, adding more than $230 billion in market value—its strongest performance since early 2023.
As one of the few automakers to reach the trillion-dollar threshold, it now joins tech giants such as Apple and Amazon in this exclusive club.
The boost is likely tied closely to expectations of favorable policies under the Trump administration, which analysts believe could expedite regulatory processes for Musk’s companies.
“Tesla and CEO Elon Musk are perhaps the biggest winners from the election result, and we believe Trump’s victory will help expedite regulatory approval of the company’s autonomous driving technology,” said Garrett Nelson, a senior equity analyst at CFRA Research, per Reuters.
Musk’s support for Trump involved substantial financial backing, including a significant $118-million-plus contribution to a pro-Trump super PAC, America PAC.
He amplified Trump’s campaign on his social media platform X (formerly Twitter), where he has more than 200 million followers.
Musk also made appearances with Trump on the campaign trail and was present at the president-elect’s Mar-a-Lago estate during the election night celebrations.
The relationship between the pair stretches beyond the campaign, with speculation surrounding potential advisory roles for Musk in the next Trump administration. Such a position could further influence regulatory approaches benefiting Tesla and the wider tech and auto sectors.
While the president-elect’s policies may disrupt subsidies essential for the broader EV market, Tesla’s established market share and unique position could mitigate those impacts. The company has been the world’s most valuable automaker for years, maintaining a valuation far above competitors like Japan’s Toyota.
The billionaire’s personal wealth also soared, topping $300 billion—a trend felt among the top 10 riches individuals in the world, who became richer by $64 billion following Trump’s win.
Newsweek has contacted Musk for comment via Tesla’s press email on Saturday outside of standard working hours.
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