Musk's Tesla surges as Trump eyes election victory

Tesla's stock surged by 8% in overnight trading on the Robinhood platform. This marks a clear rebound following a series of six declining sessions. On Tuesday, the stock increased by 3.5% during regular trading, according to CNBC.

The gains followed the revelation of Elon Musk's significant involvement in Trump's election campaign. In October, the Tesla head donated nearly £61 million to America PAC, a political committee he set up at the beginning of the year to support the Republican candidate.

Particularly important to investors is Donald Trump's declaration about appointing Musk to lead a commission on government efficiency should he win the election. During a rally at Madison Square Garden in October, the billionaire suggested reducing federal spending by £1.7 trillion.

The rise in stock prices is particularly noteworthy given that Trump is not generally regarded as a supporter of the clean energy sector, which includes electric vehicle manufacturers. Since the beginning of the year, Tesla's stock has lagged behind the broader market, gaining only 1.2% compared to the 21.2% increase of the S&P 500 index.

Analysts point out the paradox of the situation. Although Trump's policies may not be favourable to the electric vehicle industry, investors assume that Musk's ties with the former president might bring specific business benefits to Tesla. During the latest rally, Musk declared intentions to liberate entrepreneurs from excessive government control and reduce tax burdens.

Tesla's stock market reaction to the US election is one of the strongest. Currency and cryptocurrency exchange rates, oil prices, and bond yields also change significantly.