Tesla’s stock continues its upward trajectory, fueled by Elon Musk’s ongoing display of support for President-elect Donald Trump. Investors are increasingly optimistic that Tesla will be the prime beneficiary under Trump’s second administration, which will begin in January.
Tesla’s shares closed at $296.91 on the New York Stock Exchange (NYSE) on Thursday, up 2.9% from the previous session. This marks the second consecutive day of gains following a 14.75% surge after confirming Trump’s victory.
The closing price represents Tesla’s highest level in 26 months since hitting $300.80 during intraday trading on September 21, 2022. At one point during the day, Tesla’s stock touched $299.75, setting a new 52-week high. The post-election rally has pushed Tesla’s market capitalization to $953.1 billion, edging closer to the $1 trillion mark.
As Tesla emerges as the biggest beneficiary of Trump’s victory, its stock has soared 19.52% year-to-date.
Musk’s unwavering support for Trump throughout the election campaign is the key reason for this surge.
During the election period, Musk established and operated a super PAC called America PAC to bolster Trump’s candidacy. Reports suggest he invested at least $132 million during the campaign, including supporting Republican congressional candidates.
Commenting on Tesla’s stock performance, Gary Black, managing partner at investment firm Future Fund, suggested, “Musk is likely to be rewarded with an Efficiency Czar position, enabling him to expedite the adoption of a unified autonomous driving standard across all 50 states, replacing the current patchwork of state-specific regulations.
In the wake of Trump’s victory, Musk continues to showcase his close relationship with the President-elect, further boosting Tesla’s stock.
Shortly after Trump’s win, Musk posted a digitally altered image on his social media platform, X (formerly Twitter), depicting himself holding a sink in front of the White House.
The original photo was taken in October 2022 in the lobby of Twitter’s San Francisco headquarters, shortly after Musk acquired the platform. At that time, he captioned, “Entering Twitter HQ, let that sink in!” to indicate his takeover symbolically.
For the new image, which was photoshopped in front of the White House, Musk wrote, “Let that sink in,” suggesting his potential influence in the upcoming administration.
Musk also retweeted a photo of himself with Trump and his family, where he was the only person not part of Trump’s family.
