The market capitalization of Tesla surged above $1 trillion on Friday due to increasing speculation that CEO Elon Musk’s firms would be treated favorably in exchange for his backing of President-elect Donald Trump during his campaign.
Following a 19.3% gain till Thursday’s close, the electric carmaker’s shares increased more than 6% to a more than two-year high of $315.56. The company’s valuation surpassed $1 trillion for the first time in over two years. According to a source who spoke to Reuters, the billionaire might influence the U.S. National Highway Traffic Safety Administration to postpone possible enforcement actions regarding the safety of Tesla’s present driver-assistance technologies and advocate for favorable regulation of autonomous vehicles that the company aims to develop.
Tesla stock price
Following the release of its quarterly results in late October, Tesla’s stock jumped as the firm announced a higher profit margin and anticipated a 20% to 30% increase in deliveries the following year, according to the article. Many billionaires have seen a sharp increase in their net worth after Trump’s win. The wealth of the top billionaires, including Jeff Bezos, Larry Ellison, Warren Buffett, Jensen Huang, Larry Page, and Sergey Brin, increased significantly on Wednesday, November 6. When the market closed Wednesday, these billionaires had made nearly $62 billion in cumulative gains.
Musk’s support of Trump’s campaign
Musk is said to have contributed over $132 million to Trump’s 2024 campaign. He also restored Trump’s previously suspended X (Twitter) account and used his platform to further his “Make America Great Again” (MAGA) campaign. A Bloomberg report claims that X’s algorithm favored right-leaning content and promoted more pro-Trump content. Musk himself held conversations over the election, reshared articles from Trump fans, and posted pro-Trump remarks on X. Moreover, he also supported Trump’s initiatives.
