The actions Tesla Wall Street surged 12% to a new record after Donald Trump was re-elected president. And good luck Elon Musk increasing by 15 billion dollars.
Key facts
- Tesla shares soared to over $280, setting what would be a new record for the stock, eclipsing a previous high of $273.54 set on October 27.
- Trump hailed the Tesla CEO as a “genius” and a “new star” during his victory speech. Musk spent weeks campaigning for Trump across Pennsylvania before Election Day.
- Wedbush Securities analyst Dan Ives he wrote earlier this year that a second Trump presidency would be “bad overall for the electric vehicle industry.” Although he sees “a big benefit for Tesla” because the company has “unmatched scale and reach” in the industry.
- Trump’s plan to impose tariffs on Chinese imports would also discourage Tesla’s Chinese rivals BYD - which Ives noted had overtaken Tesla as the world’s largest electric vehicle maker at the time – and NIO from “flooding the US market in the coming years,” Ives said. .
Forbes rating
Musk is the richest person in the world and his fortune is estimated at 280.3 billion dollarsafter their question, equal to about 13% of Tesla shares outstanding, an increase of 15 billion dollarsaccording to land our latest estimates.
Background
Musk was among Trump’s most prominent supporters during his election campaign. The Tesla CEO has poured at least $118 million into his American PAC to support Trump. This means that Musk is Trump’s second biggest supporter after Timothy Mellon. Musk’s America PAC also donated $1 million to voters in swing states through a donation that was briefly halted by a Philadelphia court.
In September, Trump said he would create a “government efficiency commission” originally proposed by Musk, who indicated he would lead the agency. During the election cycle, Musk appeared alongside Trump at numerous rallies and supported his campaign on social media. Trump has said he is a “big fan” of electric vehicles, although he has said at a previous rally that he “doesn’t care about electrics” and in an interview in March said they cost ”too much” the vehicles and that everyone was it will be done in China.”
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Time.news Editor: Welcome to our special segment where we delve into the highs and lows of the tech and automotive industries. Today, we’re exploring a significant event in the market: Tesla shares soaring by 12% following Donald Trump’s re-election. Joining us is market expert, Dr. Lucy Harris, to provide insight into what this means for Tesla, the electric vehicle (EV) industry, and Elon Musk’s wealth. Dr. Harris, welcome!
Dr. Lucy Harris: Thank you for having me! It’s great to be here.
Time.news Editor: Let’s get right into it. Tesla’s stock hit a new record, exceeding $280 per share. What do you think drove this sharp increase right after Trump’s victory?
Dr. Lucy Harris: It’s quite fascinating. Trump’s re-election seems to have sparked optimism in investors, particularly surrounding his relationship with Elon Musk. During his victory speech, he praised Musk as a “genius” and even a “new star,” which likely fueled positive sentiment in the market. Additionally, Trump’s agenda may indirectly favor Tesla due to potential trade policies that could limit competition from Chinese EV makers, particularly BYD and NIO.
Time.news Editor: That’s an interesting point about competition. Wedbush Securities’ analyst, Dan Ives, suggests a second Trump presidency could have mixed results for the EV industry as a whole, despite Tesla benefiting. Could you elaborate on that?
Dr. Lucy Harris: Absolutely. While Ives believes that Trump’s tariffs on Chinese imports could protect Tesla from competition, he also warns that Trump’s policies may not be ideal for the electric vehicle market. His stances could hinder the growth of the broader EV ecosystem, as they might limit innovation or support for renewable technologies that benefit all players in the market. Nevertheless, Tesla’s unmatched scale puts it in a strong position to navigate these choppy waters.
Time.news Editor: It sounds like a double-edged sword for the EV industry. If Tesla dominates thanks to its existing infrastructure and scale, what implications does that have for innovation and competition within the sector?
Dr. Lucy Harris: That’s a crucial concern. While larger companies like Tesla benefit from economies of scale, it can stifle innovation from smaller players who may be unable to compete at that level. A balanced ecosystem is vital for long-term growth and advancement in technology. If Tesla is perceived as a monopoly, it could lead to complacency, and we might miss out on breakthroughs that smaller, agile companies could provide.
Time.news Editor: Elon Musk himself saw an increase of $15 billion in his wealth due to this stock surge, pushing his net worth to approximately $280 billion. How do you view the relationship between Musk’s wealth and Tesla’s market performance?
Dr. Lucy Harris: Musk’s wealth is intrinsically tied to Tesla’s performance since a substantial portion of his wealth is based on Tesla stock. As Tesla thrives, so does Musk, which can create a fascinating dynamic where investor confidence in Musk directly translates to financial gain—both for him and shareholders. However, this also makes him a target for critique if the company faces challenges, reflecting the volatility of tech and stock markets.
Time.news Editor: It’s certainly a rollercoaster ride! As we wrap up, what do you think the future holds for Tesla and the electric vehicle market under a Trump administration?
Dr. Lucy Harris: The future will likely depend on how policies unfold regarding trade, tariffs, and innovation incentives. If Tesla can leverage its position while navigating potential challenges posed by broader industry implications, it could continue to lead the EV market. However, it’s essential for the sector to also foster a diverse array of players to spur innovation across the board. The industry is still in its infancy, and how it evolves will be critical in the coming years.
Time.news Editor: Thank you, Dr. Harris. Your insights are invaluable as we watch these developments unfold. It’s going to be an interesting few years ahead for Tesla and the electric vehicle landscape!
Dr. Lucy Harris: Thank you for having me! I’m excited to see what happens next as well.