Tesla's market value soars as Musk rides Trump wave
Tesla's market capitalisation, which is dominated by Elon Musk, surpassed £770 billion on the New York Stock Exchange on Friday. Shares of the electric car manufacturer are soaring following Donald Trump's election as president, which Musk strongly supported during the campaign.
Tesla shares are rising more than 5 per cent on Friday, surpassing a value of £770 billion for the first time in history.
Elon Musk gains from Trump's victory
Investors bet that Tesla’s CEO, Elon Musk, will benefit from a potential Trump administration. Musk was Trump's most vocal promoter during the campaign and donated over £100 million to help him win the election.
As of Tuesday's close, Tesla had a market capitalisation of approximately £625 billion. Before this week's rally, the car manufacturer's shares had risen about 1 per cent over the year. Now, Tesla's stock price has increased approximately 26 per cent since the beginning of the year.
Tesla joins the growing club of tech companies that are now worth over £770 billion. This group includes Nvidia, Apple, Microsoft, Alphabet, Amazon, and Meta. All these companies, except for Meta, already have a value exceeding £1.55 trillion.
Dan Ives, an analyst at Wedbush Securities, said that a potential Trump administration might mean fewer regulations for Tesla and other companies. Trump previously stated he might cut the federal tax credit on electric vehicles, which is valued around £5,4, and Ives believes this could be beneficial for Tesla in the long run.
"Tesla has the scale and scope that is unmatched. This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players (BYD, Nio, etc.)," Ives wrote in a note to clients this week.
