Shares of Tesla soared by 12% on Wednesday morning, boosting Elon Musk’s fortune by nearly $20 billion after President Donald Trump was reelected and praised the Tesla chief executive as a “super genius” and a “new star.” The surge in Tesla’s stock price lifted it to over $288, exceeding its 52-week high, thanks to Trump’s positive comments about Musk and the company. Despite earlier concerns about a second Trump presidency being negative for the electric vehicle industry, analysts at Wedbush Securities viewed it as a huge positive for Tesla due to its unmatched scale and scope in the industry.
Analyst Dan Ives noted that Trump’s plan to implement tariffs on Chinese imports would also benefit Tesla by deterring Chinese competitors like BYD and NIO from flooding the U.S. market in the coming years. This move could help Tesla maintain its position as the world’s largest EV maker despite recent challenges from competitors. Musk, who recently became the wealthiest person in the world with a fortune of $284.3 billion, saw his stake in Tesla increase by $19.9 billion, adding to his already substantial wealth. This surge in Tesla’s stock price and Musk’s fortune comes after the billionaire entrepreneur actively campaigned for Trump in Pennsylvania before Election Day.
Musk’s support for Trump during the election campaign included substantial financial contributions to the America PAC, making him one of Trump’s key backers. Musk’s America PAC also ran a giveaway offering $1 million to voters in swing states, which was temporarily halted by a Philadelphia court. In addition to his financial support, Musk has advocated for government initiatives proposed by Trump, such as a “government efficiency commission” that Musk indicated he would lead. Despite some skepticism about Trump’s stance on electric vehicles, the president has expressed admiration for Musk and his work at Tesla, even appearing together at rallies during the election cycle.
The positive impact of Trump’s reelection and his praise for Musk on Tesla’s stock price highlight the growing influence of both individuals in the business and political spheres. Despite uncertainty surrounding the outcome of the election, Tesla’s strong performance under Musk’s leadership has cemented its position as a leading player in the electric vehicle industry. As Trump continues to implement policies that benefit companies like Tesla, the future looks promising for both the automaker and its chief executive. With Tesla’s share price reaching new highs and Musk solidifying his status as the world’s wealthiest person, the company’s success under his leadership is likely to continue in the months and years ahead.
