Tesla Stock: Tesla stock surged in overnight trading as the possibility of a Donald Trump election win appears to be lifting hopes for Elon Musk, one of Trump’s most prominent supporters. Shares of Tesla shot up 8% after-hours on Robinhood, reaching a 52-week high of around $272 per share. This rally follows Tesla’s 3.5% rise in Tuesday’s regular trading session, snapping a six-day losing streak for the stock.
Elon Musk, the CEO of Tesla and SpaceX, has recently become one of Trump’s major financial backers, donating millions to support the Republican nominee’s campaign. Musk even launched America PAC, a super PAC created to fund Trump’s election efforts. Last month alone, Musk contributed $75 million to this cause, and recent reports reveal he’s donated over $132 million to Trump’s campaign to date.
Musk’s deepening involvement in politics comes with promises from Trump himself. If Trump wins, Musk is set to lead a new “government efficiency commission,” a position where he claims he could help save $2 trillion from the federal budget. Speaking at Trump’s recent rally at Madison Square Garden, Musk said, “Your money is being wasted, and the department of government efficiency is going to fix that. We’re going to get the government off your back and out of your pocketbook.”
This latest stock surge is intriguing to investors, especially since Trump has historically been critical of green energy initiatives, which include electric vehicles (EVs) like Tesla’s. Analysts believe Tesla could still benefit from a Trump win. According to Wedbush Securities analyst Dan Ives, while Trump’s presidency could mean fewer incentives for EV buyers, Tesla might hold an advantage. With its scale and established brand, Tesla could stand out as the U.S. EV leader if Chinese competitors face tougher import restrictions under Trump’s policies.
Tesla bulls like Cathie Wood, CEO of Ark Invest, also see the election as a pivotal event for the markets. Wood noted that uncertain times often spur innovation, citing how COVID-19 forced rapid changes across industries. “People, businesses, and consumers are willing to change the way they do things, move away from inertia, and really change their habits,” Wood said.
As the election results roll in, with Trump holding 230 electoral college votes to Vice President Kamala Harris’s 210, Tesla’s stock performance reflects investor bets that Musk’s political involvement may bring new opportunities for the company.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult a qualified financial advisor or conduct your own research before making investment decisions.
