On Wednesday, Trump defeated Harris to win the USA presidential election, leading to a sharp rise in Tesla's stock price. Tesla's stock price rose by 14.75% on Wednesday to reach $288.53, hitting a new high since July 2023. This increase in Tesla CEO Musk's wealth by about $20.9 billion, totaling nearly $286 billion.
The China Wealth News reported on November 7th that on Wednesday, Trump defeated Harris to win the USA presidential election, causing Tesla's stock price to soar. Tesla investors believe that the Trump 2.0 era will be bullish for the business empire of the major shareholder Elon Musk.
Tesla's stock price rose by 14.75% on Wednesday to reach $288.53, hitting a new high since July 2023.
This increase boosted Tesla CEO Musk's wealth by about $20.9 billion, increasing his total wealth to nearly $286 billion, further solidifying his position as the global richest person.
Musk was a key ally of Trump during the election period, and in the weeks leading up to the election, the market considered Tesla as one of the 'Trump trades'.
In the early hours of Wednesday local time, Trump praised Musk heavily during a victory speech at the Palm Beach Convention Center in Florida.
"We have a new star; a star is born: Elon," said Trump. "He is an amazing person. We spent the night together. He spent two weeks campaigning in different areas of Philadelphia and Pennsylvania."
After Trump's victory, Musk jokingly said he "won't have to consider going to a labor camp anymore" and will be safe for the next five years. Previously, he had mentioned that if Trump lost, he would be "done for".
Tesla will benefit.
Wall Street analysts believe that Musk's support for Trump will ultimately benefit Tesla.
CFRA Research senior analyst Garrett Nelson raised Tesla's target price from $265 to $375 on Wednesday, implying over 30% upside potential for the stock.
"In our view, Tesla and its CEO Elon Musk may be the biggest winners of the election outcome. We believe a Trump victory will help accelerate regulatory approval of Tesla's autonomous driving technology," Nelson wrote in a report on Wednesday.
Adverse to the overall electric car industry
However, after Trump takes office, electric car tax credits and tax incentives may decrease, which could negatively impact other companies in the electric car industry.
On Wednesday, investors fled from other electric car stocks, with Rivian and Nikola stocks falling by over 8% and nearly 2% respectively.
"We believe a Trump presidency is unfavorable for the overall electric car industry as electric car tax credits / tax incentives may be eliminated. However, for Tesla, we see this as a huge bullish signal," analyst Dan Ives wrote in a report on Wednesday.
