Elon Musk on stage before Republican presidential candidate former President Donald Trump speaks at a rally at Madison Square Garden in New York, NY, Sunday, October 27, 2024.
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Share from Tesla rose more than 5% in mid-morning trading on Friday, pushing the electric vehicle maker’s market cap past $1 trillion for the first time.
The company’s shares have rallied about 27% this week after President-elect Donald Trump won the US presidential election and investors have grown optimistic that the former president’s return to the White House can benefit Tesla. Tesla CEO Elon Musk has been a key ally for Trump during the campaign, pouring at least $130 million into pro-Trump campaign efforts.
Tesla had a market cap of $807.1 billion as of Tuesday’s close. Before this week’s rally, the automaker’s shares were up about 1% for the year. Tesla shares are currently up 26% year to date.
Tesla joins the club of tech names that are now worth more than $1 trillion, incl Nvidia, Apple, Microsoft, Alphabet, Amazon and Meta (even though all but Meta are worth over $2 trillion).
Wedbush Securities analyst Dan Ives said a potential Trump administration could offer less regulation to Tesla and other companies. Trump has previously said he could cut the $7,500 federal electric vehicle tax credit, which Ives believes could be positive for Tesla long-term.
“Tesla has unmatched scale and scope in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled with higher Chinese tariffs that will continue to drive out cheaper Chinese EV players .(BYD, Nio, etc.) from flooding the US market in the coming years,” Ives wrote in a note to clients this week.
— CNBC’s Lora Kolodny contributed to this report.
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