Tesla’s stock (NASDAQ: TSLA) is soaring in pre-market trading, up over 12%, as the market reacts to the news that Donald Trump has secured the U.S. presidency.
This unexpected turn of events appears to be a triumph for Tesla CEO Elon Musk, who had previously joked that a Trump loss would leave him “gloriously in trouble.”
Musk’s vocal support for the Trump campaign, despite the president-elect’s generally skeptical stance on electric vehicles and climate change initiatives, has now paid dividends.
In his victory speech, Trump singled out Musk, declaring that “a star is born” – a clear nod of approval towards the Tesla CEO and his various ventures, including the industry-leading SpaceX.
President-Elect Donald Trump on Elon Musk in his 2024 Victory Speech: “We have a new star… A star is born — Elon.” pic.twitter.com/m1i1DS0HAI
— America (@america) November 6, 2024
This contrasts sharply with the chilly reception Tesla has faced from the outgoing Biden administration, which pointedly excluded the company from the White House’s high-profile EV summit and credited GM’s Mary Barra as the driving force behind the electric vehicle revolution.
According to Wedbush analyst Dan Ives, a Trump presidency could prove beneficial for Musk and Tesla, potentially accelerating the company’s self-driving and autonomous initiatives.
Ives believes “Trump could also accelerate some of the FSD and autonomous initiatives for Tesla (and Waymo as well) in the White House,” potentially bringing forward some of Tesla’s long-term goals.
Trump could also accelerate some of the FSD and autonomous initiatives for Tesla (and Waymo as well) in the White House. The autonomous fast tracking will be front and center for investors in this scenario as some of the 2026/2027 goals for Tesla could be accelerated @CNBC https://t.co/YtwQrYW3VH
— Dan Ives (@DivesTech) November 6, 2024
With Tesla’s stock price surging on the news, it appears that Musk’s high-stakes gamble on a Trump victory has indeed paid off handsomely.
As the 47th president prepares to take office, the future looks bright for Elon Musk and his electric vehicle empire.
