The stock market saw another day of Tesla stock roaring on Monday as it continued its strong post-election gains. This surge came after Tesla’s leader, Elon Musk, aligned himself with President-elect Donald Trump’s efforts to secure a second term in office. This move not only benefited Musk but also saw Tesla’s stock price reaching its highest since April 2022, with shares jumping 7% to $345 by midday. Wall Street’s interest in Tesla has been on the rise since Trump’s victory, leading to a 37% increase in the stock price since last Tuesday.
As the largest shareholder of Tesla, Musk has greatly profited from the recent gains. Already the world’s richest person prior to the election, Forbes calculates his net worth has increased by about $52 billion since last Tuesday, reaching $318 billion. This significant boost in wealth has widened the gap between Musk and the next richest person to more than $80 billion, surpassing the total wealth of the world’s wealthiest woman, Francoise Bettencourt Meyers. The rally on Monday was accompanied by a bullish note from Wedbush analyst Dan Ives, who raised his firm’s price target for Tesla to $400, suggesting a 20% further upside.
Ives highlighted how policies like looser regulation under Trump could benefit Tesla’s autonomous driving initiatives and predicted that Musk would play a significant role in discussions about U.S. tariffs on Chinese goods. He also anticipated some exemptions for Tesla in potential retaliatory trade policies from China, which would be crucial for Tesla’s operations in its key market. Despite concerns that Musk’s political involvement might require him to step back from Tesla, the Financial Times reported that he would not take on any role in the Trump administration that would conflict with his positions in the private sector.
Since the election, Tesla stock has stood out as a major player in the post-election rally, symbolizing a more favorable environment for corporations. With stock indexes like the S&P 500 reaching record highs, assets closely aligned with Trump, such as bitcoin and Tesla stock, have seen significant gains. Musk’s close ties to Trump have become more apparent since he endorsed him in July, leading to his involvement in important political discussions. The recent surge in Tesla’s market value since the election is equivalent to the combined market capitalization of Toyota and General Motors, highlighting the magnitude of Tesla’s success in recent days.
By aligning himself with Trump’s efforts to secure a second term, Musk has made a strategic bet that has paid off handsomely for Tesla and himself. This move has solidified Musk’s position as the wealthiest person in the world by a significant margin. As the post-election rally continues, investors are closely watching how Tesla and other assets will be impacted by the new political landscape. With Trump’s policies potentially benefiting corporations like Tesla, the future looks promising for the electric car company and its billionaire leader.
