Introducing the innovative investment research assistant, experience it now. On Wednesday, Trump defeated Harris to win the US presidential election, which led to a significant surge in Tesla’s stock prices. Investors believe that the Trump 2.0 era will be beneficial for the business empire of major patron Elon Musk. Tesla’s stock closed up 14.75% on Wednesday, reaching $288.53, setting a new high since July 2023.
This increase in Tesla’s stock price has greatly boosted CEO Elon Musk’s wealth by approximately $20.9 billion, bringing his total wealth to nearly $286 billion, further solidifying his position as the world’s richest person. Musk was a key ally during Trump’s campaign, and in the weeks leading up to the election, the market considered Tesla as one of the ‘Trump trades’. In his victory speech on Wednesday morning at the Palm Beach Convention Center in Florida, Trump highly praised Musk. ‘We are witnessing the birth of a new star; a star is born: Elon,’ Trump said. ‘He is an amazing person. We are sitting together tonight. He spent two weeks campaigning in different areas of Philadelphia and Pennsylvania.’ After Trump’s victory, Musk joked that he would not have to consider going to a labor camp and would be safe for the next five years. Previously, he had stated that if Trump lost, he would be ‘doomed’. Tesla is set to benefit from Wall Street analysts’ belief that Musk’s support for Trump will ultimately benefit Tesla. On Wednesday, CFRA Research Senior Analyst Garrett Nelson raised Tesla’s target price from $265 to $375, indicating that the stock still has over 30% room for growth. ‘In our view, Tesla and its CEO Elon Musk may be the biggest winners of the election outcome, and we believe Trump’s victory will help accelerate regulatory approval of Tesla’s autonomous driving technology,’ Nelson wrote in a report on Wednesday. However, Trump’s presidency may be detrimental to the overall electric vehicle industry, as electric vehicle rebates and tax incentives may decrease, potentially adversely affecting other companies in the industry. On Wednesday, investors fled other electric vehicle stocks, with Rivian and Nikola’s stock prices falling by over 8% and nearly 2%, respectively. ‘We believe that Trump’s election as president is generally unfavorable for the electric vehicle industry because electric vehicle rebates/tax incentives may be canceled, but for Tesla, we believe it is a huge positive,’ Wedbush analyst Dan Ives wrote in a report on Wednesday.Article Source: Caixian Society
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