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Tesla’s stock surged by 12% in premarket trading Wednesday morning, pushing Tesla’s share price toward a new all-time high, as Donald Trump secured his second term as president. Analysts predict the election outcome could positively impact Tesla, giving a boost to Elon Musk’s company.
Key Highlights: First report by Forbes.
- Stock Performance: Tesla shares climbed to over $283 as of 7:10 am EST, surpassing the previous record of $273.54 set on October 27.
- Trump’s Praise for Musk: In his victory speech early Wednesday, Trump hailed Musk as a “super genius” and a “rising star,” acknowledging the Tesla CEO’s extensive support throughout the campaign, including appearances in key battleground states like Pennsylvania.
- Analyst Insights: While Wedbush Securities analyst Dan Ives previously noted that a Trump administration might generally challenge the EV sector, he emphasized that the outcome could significantly benefit Tesla. Due to Tesla’s dominant market position, Ives described it as having “unmatched scale and scope” within the industry, suggesting it is well-positioned for potential benefits.
- Impact of Trade Policies: Trump’s plans to implement tariffs on Chinese imports could hamper competition from Chinese EV makers like BYD and NIO, reducing the threat of these companies increasing their presence in the U.S. market.
Musk’s Fortune Climbs
Elon Musk, currently the world’s wealthiest individual with a net worth estimated at $265.7 billion, stands to gain approximately $12.1 billion from his 13% stake in Tesla if the stock’s premarket momentum continues.
Related Article: Elon Musk Gamble on Trump Pays Off as Tesla Shares Surge – What This Means for the EV Industry
Background
Elon Musk emerged as a prominent supporter of Trump’s re-election, committing over $118 million through his America PAC, positioning him among Trump’s top donors. Musk’s backing also included a $1 million incentive program aimed at engaging swing-state voters, though this initiative briefly encountered legal scrutiny in Philadelphia. Trump has hinted at establishing a “government efficiency commission,” a concept originally suggested by Musk, with the possibility of Musk taking a leadership role in the endeavor. Despite Trump’s previously mixed views on electric vehicles, he recently praised Musk’s innovative contributions to the EV industry, underscoring a potential alliance between the two on pro-business, tech-forward initiatives.
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