Tesla’s market valuation has surged past $1 trillion, fueled by a sharp rise in its share price following Donald Trump’s election win.
The electric vehicle maker’s shares jumped over 6% as trading began in New York on Friday, pushing CEO Elon Musk’s net worth above $300 billion.
Tesla’s stock has climbed more than 20% since Trump secured his victory early Wednesday, marking the first time the company has surpassed a $1 trillion market cap since 2022.
Musk, a vocal supporter of Trump, contributed over $130 million to his campaign and is expected to take on a role as an efficiency advisor in the new administration, despite Trump’s skepticism about electric vehicles.
Analysts predict Tesla will benefit significantly from a Trump presidency, with the administration likely easing regulatory barriers for the launch of self-driving cars and robotaxis across the U.S.
Dan Ives, an analyst at Wedbush Securities, commented, “Tesla and Musk are the biggest beneficiaries of a Trump White House.” He added that Musk’s backing of Trump would yield “long-term dividends.”
However, Trump’s pledge to impose steep tariffs of up to 60% on imports from China could spark a trade war, posing a potential risk to Tesla, which operates a large gigafactory in Shanghai and could face retaliation from Beijing.
The broader U.S. stock market hit record highs this week as Trump’s victory reduced fears of a contested election. Both the Dow Jones and the S&P 500 have risen more than 4% as of Friday.
