Tesla stock surges after Trump wins presidency
Musk was prominent backer of Trump's campaign through donations and vocal support
Great Hill Capital Chairman Thomas Hayes discusses how long the stock market rally will last after Trump's election victory on ‘Varney & Co.’
Shares of electric vehicle-maker Tesla surged on Wednesday as stocks rose broadly after former President Trump prevailed in the presidential election.
Tesla's stock soared as much as 14% after the market opened, and was up more than 12.8% in late morning trading.
Tesla CEO Elon Musk endorsed Trump's bid to return to the White House and was a prominent financial backer of his campaign.
Trump has been critical of incentives and subsidies for EVs, but has commended Musk's work with Tesla and praised him as a "super genius" during his victory speech early Wednesday morning.
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Tesla CEO Elon Musk was a vocal backer of former President Trump's campaign. (Jim Watson/AFP via Getty Images / Getty Images)
Wall Street anticipates the incoming Trump administration will cut taxes and pursue a deregulatory agenda similar to the former president's first term in office.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 288.17 | +36.73 | +14.61% |
Wedbush Securities analyst Dan Ives said in a note to investors that the "biggest positive from a Trump win would be for Tesla and Musk."
He explained that while the firm thinks a Trump presidency "would be an overall negative for the EV industry" due to EV rebates and tax incentives being eliminated, that could be a "huge positive" for Tesla.
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Musk may play a role in the Trump administration and has called for a government efficiency commission to rein in excess spending. (Reuters/Aly Song/File Photo / Reuters Photos)
"Tesla has the scale and scope that is unmatched in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players (BYD, Nio, etc.) from flooding the U.S. market over the coming years," Ives wrote.
Ives explained that Tesla may accelerate some of its 2026 and 2027 autonomous driving initiatives to stay on track with the autonomous driving push by Chinese automakers.
"We believe a Trump win could add $40-$50 per share to Tesla's stock and exceed $1 trillion in market cap if autonomous/FSD is accelerated starting in 2025 and a tailwind for Cybercab," he added.
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Musk may play a role in the incoming Trump administration, as the two have discussed his participation in a government efficiency push aimed at reducing wasteful federal spending.