Tesla (TSLA) stock surged nearly 15% today, closing at $288.53, its highest level in over a year. This momentum lifted Tesla’s market capitalization above $900 billion, positioning it as one of the world’s most valuable companies.
The last time Tesla’s stock was higher was on September 16, 2022, when it closed at $303.35. Today’s spike comes after Donald Trump was elected as the 47th President of the United States, reflecting investor optimism about Tesla’s future under a Trump administration.
Historically, Tesla has shown strong performance following US presidential elections, but 2024 stands out as a new high. The day after the 2012 election, when President Obama was re-elected, Tesla shares rose 1.5%. The trend continued in 2016 when Donald Trump won for the first time, with Tesla shares gaining 2.6%. In 2020, Biden’s victory brought Tesla a 4.8% increase. (h/t: @jamesdsteele)
Today, following Trump’s 2024 reelection, Tesla experienced a substantial 15% rally, after CEO Elon Musk invested heavily, both financially and emotionally, in Trump’s campaign.
Why Did TSLA Stock Rise Today?
While Trump has historically shown skepticism toward electric vehicles (EVs), labeling them as too costly or as overly reliant on foreign manufacturing, his praise for Musk could indicate a significant shift. Musk, whom Trump called a “super genius” and a “new star,” has gained the president’s favour during the campaign. This could see Tesla positioned uniquely among US EV makers under Trump’s policies and regulation changes that might hurt smaller, less established EV companies.
Tesla’s stock performance on Wednesday also had a positive effect on Musk’s personal wealth. Holding roughly 13% of Tesla’s outstanding shares, Musk’s net worth climbed by approximately $20 billion with today’s market close, bringing his estimated net worth to $280 billion.
Tesla ($TSLA) closed at $288.53 today, up nearly 15%, a new 52-week high, bringing its market cap above $900 billion.$TSLA last closed higher at $303.35 on Sept 16, 2022. pic.twitter.com/DssqXfIrVF
— Drive Tesla (@DriveTeslaca) November 6, 2024
