Tesla surged back into the elite $1 trillion market capitalization club on November 8, following a stock rally fueled by Donald Trump’s re-election as President of the United States.
Tesla’s shares have risen over 23% since the election results, reaching approximately $322 per share on Friday. This marks the first time Tesla has achieved this price point since early 2022, reflecting renewed investor confidence in the electric vehicle giant.
The stock rally follows CEO Elon Musk’s visible support for Trump during the election, including public endorsements and significant campaign contributions.
This alliance has sparked investor optimism for Tesla’s future, particularly in areas such as autonomous vehicle regulation, where Musk supports a national framework to replace the current patchwork of state approvals. Trump’s administration could advance this vision, potentially expediting the rollout of Tesla’s Full Self-Driving (FSD) program.
Tesla’s Q3 earnings report, announcing $25.18 billion in revenue and a projected 20-30% increase in vehicle deliveries for 2025, has further fueled investor enthusiasm. However, Trump’s stance on green subsidies, including a potential rollback of the $7,500 EV tax credit, presents mixed implications.
While the tax credit has boosted Tesla’s sales, Musk has argued for its removal, positing that the pressure to innovate without subsidies could ultimately benefit Tesla.
