New Wonderful Investment Research Assistant, experience it immediately. On Monday (the 11th) Eastern Time in the United States, the three major U.S. stock indexes all continued to hit new closing highs. As of the close, the Dow Jones Industrial Average rose 0.69%, the Nasdaq Composite rose 0.06%, and the S&P 500 Index rose 0.10%. Tesla rose nearly 9%, achieving its largest five-day increase in four years.
Its market value soared by $92.3 billion (about 667.2 billion yuan) overnight, with a total market value of $1.1235 trillion, rising to the seventh place among U.S. stocks. Calculated from the close on November 4th, Tesla has risen 44.25% in 5 trading days. Looking back at last week, Tesla’s stock price climbed continuously, surging 29% during the week, and its market value exceeded the $1 trillion mark. Data from the Forbes Billionaires List shows that Musk’s wealth increased by $16.2 billion on the 11th, with his total assets reaching $320.2 billion, firmly sitting at the top of the world’s richest list.It is currently unclear whether Musk, who has spent at least $130 million on Trump’s election campaign, will receive an official position in Trump’s second-term government or whether he will continue to influence the policy decisions of Trump’s inner circle. The outside world expects that Musk may sign new contracts worth billions of dollars with the government, not including the $19 billion contract already obtained by his SpaceX company. In addition, some or all of the 19 known federal lawsuits and investigations against his companies may come to an end.
Analysts at Bank of America wrote in a report last week: “It is difficult to judge what benefits Musk’s increasingly close public relationship with Trump will bring to Tesla, but this requires close attention.” They raised Tesla’s target stock price from $265 to $350. While Musk has won big, hedge funds shorting Tesla have suffered losses of more than $5 billion. Based on data compiled by S3 Partners and calculated by Bloomberg, hedge funds with short positions in Tesla suffered at least $5.2 billion (about 37 billion yuan) in paper losses from Election Day to the close of trading last Friday. Per Lekander, CEO of hedge fund management company Clean Energy Transition, said he “slightly shorted Tesla before the general election. ” He has managed to reduce “a considerable amount” of his positions, meaning his losses were ultimately “quite small.” “But we lost some money,” he said. Lekander said he believes the Trump effect accounts for about one-third of Tesla’s current stock price of over $300. He said: “So now Tesla’s stock is more like a gamble on how much Trump can help Elon.Data from Hazeltree, which tracks positions of over 500 hedge funds, shows that many hedge funds have unwound their short bets on Tesla in the past four months, a shift that aligns with Musk’s support for Trump on July 13th. The data indicates that, as of November 6th, local time, only 7% of hedge funds are net short on Tesla, down from 17% in early July. Nonetheless, only 8% of hedge funds are net long on the stock.
It has proven that Tesla is a risky stock for short sellers, despite other companies in the electric vehicle industry facing unfavorable factors such as trade tensions, low consumer demand, and increased competition. In July of this year, nearly one-fifth of the hedge funds tracked by Hazeltree were short on Tesla, but these funds were caught off guard after the company’s sales data led to a significant stock price surge. As the market digests the news of Trump’s victory, renewable energy stocks from wind to solar began to decline, with concerns that Trump would fulfill his promise to cut clean energy incentives. According to the China Energy News, on one hand, Trump has explicitly expressed support for the development of traditional energy, and market analysis suggests that the oil and gas industry will enter a period of development dividends in the next four years. On the other hand, Trump’s attitude towards the new energy industry is complex; he has not publicly stated that he does not support the development of renewable energy industries such as ‘wind and light,’ but at the same time, he has promised to repeal the Inflation Reduction Act, which promotes the green economy, upon taking office. Lekander stated that more than a year later, he expects even Tesla to feel the sting of Trump’s anti-climate policies. He explained that despite the connection between President-elect Trump and Musk, ‘Trump’s victory is very negative for Tesla as a car company.’ (Source: Daily Economic News)
