Shares of Tesla saw a significant surge of 12% on Wednesday morning, leading to an increase in the company’s stock and adding nearly $20 billion to Elon Musk’s fortune. This spike in Tesla’s shares came after Donald Trump was reelected as president and praised Musk as a “super genius” and a “new star” during his victory speech. Trump’s positive comments towards Musk, who had actively campaigned for Trump in Pennsylvania before the election, contributed to the rise in Tesla’s stock price.
Tesla’s shares reached over $288, surpassing the company’s previous 52-week high of $273.54. Analysts at Wedbush Securities had conflicting views on the impact of a Trump presidency on the electric vehicle (EV) industry. While they believed it would have a negative effect on the industry overall, they also saw it as a positive for Tesla due to the company’s unmatched scale and scope. Additionally, Trump’s proposed tariffs on Chinese imports were expected to benefit Tesla by hindering its Chinese competitors, such as BYD and NIO, from flooding the U.S. market with their electric vehicles.
As a result of the increase in Tesla’s stock price, Elon Musk’s fortune rose to $284.3 billion, making him the wealthiest person in the world. Musk’s stake in Tesla, which accounts for about 13% of the company’s outstanding shares, grew by $19.9 billion following the surge in stock value. Musk had been a prominent supporter of Trump during his election campaign, contributing millions of dollars to Trump’s America PAC and appearing alongside him at rallies. Trump, in turn, praised Musk’s ideas, such as the creation of a government efficiency commission, which Trump expressed interest in implementing.
Tesla’s strong performance in the stock market and Musk’s growing fortune reflect the positive impact of Trump’s reelection on the company and its CEO. While some analysts had concerns about the implications of a second Trump presidency on the EV industry, Tesla’s position as a leader in the market was seen as a strength. With Trump’s plans for tariffs on Chinese imports potentially benefiting Tesla by limiting competition from Chinese EV makers, the company’s outlook remains positive. Musk’s support for Trump and the success of Tesla under his leadership further solidify his position as the wealthiest person in the world.
