Donald Trump won the 2024 US elections and shares of the Tesla and Trump Media disappear on Wall Street. The automotive giant founded by Elon Musk advanced with 12.41% to 282 dollars per share (already on Piazza Affari it had risen +13.34%), and the Trump Media & Technology Group stock rises by 12.67%.
Both stocks benefit from the re-election to the White House of the tycoon, supported by Elon Musk since the beginning of the election campaign. Trump himself thanked his most important and powerful supporter on stage immediately after the victory: “Elon is an extraordinary man, we were together tonight, he spent two weeks in Philadelphia, in different places in Pennsylvania, campaigning for me” . Then he called him a “super genius” and clarified that “we have to protect our super genes.”
Trump’s effect on the stock market
Not just Tesla. Trump’s victory led to clear positive reactions from the stock sector. The banks are running: Bank of America scores +7.21%, JPMorgan +8.50%, Citigroup +8.77%, Goldman Sachs +10.41% and Morgan Stanley +9.42%.
In the premarket, the Dow Jones and S&P500 celebrated historic highs and the Russell2000 confirms itself as the best performing list. Filippo Diodovich, Senior Market Strategist of IG Italia, emphasizes this for Adnkronos, stressing that ”Tesla stock is flying among the stocks, confirming the victory of Elon Musk on the markets”. The reactions, he explains, are driven mainly by the electoral program of the Republican candidate, which has particular importance in economic matters. the industrial sector and small businesses in the central states of the USAshould take the form of ultra-broad spending policies, but above all in support of businesses, with a reduction of up to 15% in corporate tax at 21% at the moment”.
Interview Between Time.news Editor and Market Analyst Jane Doe
Editor: Welcome, Jane! Thank you for joining us today to discuss the recent electoral outcomes and their implications on the stock market, particularly concerning Tesla and Trump Media.
Jane Doe: Thank you for having me! It’s definitely an interesting time for the markets, especially with the recent re-election of Donald Trump.
Editor: Indeed! The news is that Trump won the 2024 US elections, and both Tesla and Trump Media shares had a significant surge following the announcement. Can you explain what factors might be driving this stock performance?
Jane Doe: Certainly! The stock market often reacts strongly to election outcomes. Trump’s re-election has created a wave of optimism among investors who believe that his business-friendly policies will continue to support growth in key sectors, particularly technology and automotive, where Tesla plays a pivotal role.
Editor: Interesting! So, to clarify, the optimism stems from expectations about economic policies under his administration?
Jane Doe: Exactly! Investors tend to bet on continuity, and Trump’s established relationship with the business community, particularly companies like Tesla, plays a huge role. For Tesla to rise by over 12% to $282 per share, it signifies that investors are confident in Musk’s leadership and innovations under a Trump presidency.
Editor: And what about the Trump Media & Technology Group? Its shares also saw a notable increase of 12.67%.
Jane Doe: The rise in Trump Media’s stock can be attributed to several factors. Firstly, Trump’s brand remains incredibly influential, which translates into investor confidence. There’s also the anticipation of increased ad revenue and investments in digital platforms that cater to conservative audiences—something that has been growing in demand.
Editor: That makes sense. However, we’ve seen volatility in stock prices before, especially in response to political events. Is there a risk of this surge being short-lived?
Jane Doe: Absolutely, that’s a valid concern. The market can be very reactive to political changes. If economic policies are perceived as unfavorable or if there are unforeseen events that can shake investor confidence, we might see a pullback. It’s crucial for investors to stay cautious and not get swept up in the euphoria of a single election result.
Editor: So, what should investors keep an eye on in the coming weeks and months?
Jane Doe: Investors should monitor any announcements regarding Trump’s proposed policies, particularly those impacting trade, technology regulations, and tax reforms that could affect corporate earnings. Additionally, tracking the performance of Tesla and Trump Media in their upcoming quarterly earnings reports will provide further insight into their growth trajectories.
Editor: Thank you, Jane! Your insights are invaluable, especially as the markets navigate these turbulent political waters.
Jane Doe: Thank you for having me! It’s always a pleasure to discuss these crucial issues with you.
