Tesla Motors shares continued to jump 4.3% in premarket trading while Direxion Daily TSLA Bull 2X Shares ETF rallied 8.6%.
Destiny Tech100 Inc ETF rocketed 23% in premarket trading as SpaceX is its largest holding.
Shares of Tesla Motors climbed 8% on Friday, pushing the electric vehicle maker’s market cap past $1 trillion.
The company’s stock has rallied about 29% last week after Donald Trump won the U.S. presidential election and investors have grown optimistic that the former leader’s return to the White House could benefit Tesla. Elon Musk, Tesla’s CEO, has been a key ally for Trump throughout his campaign, pouring at least $130 million into a pro-Trump campaign effort.
Destiny Tech100 Inc ETF, which has nearly 38% of its portfolio in private shares of SpaceX, has more than tripled in the past three days, surging from about $11.60 a share to just under $37. Shares were up 65% alone on Friday.
Traders may be speculating that SpaceX could get more business from the federal government, including the National Aeronautics and Space Administration, due to the fact that Musk was a vocal supporter of Donald Trump. Wall Street is also likely betting that Trump will be much more market-friendly than Vice President Kamala Harris would have been if she had won the presidential race.
Destiny Tech100 Inc ETF invests in so-called unicorns through later-stage rounds of venture capital financing and by purchasing pre-IPO shares from existing investors. The Destiny Tech100 fund also has stakes in OpenAI; fintechs Revolut, Stripe, and Chime; and Epic Games, the developer of Fortnite.