Tesla Inc.'s stock has skyrocketed in the days following Donald Trump's victory in the 2024 U.S. presidential election, fueled by investor optimism that the electric vehicle maker will receive favorable treatment under the incoming administration. The company's shares surged over 26% in the past three trading days, adding more than $230 billion to its market capitalization.
The meteoric rise in Tesla's stock price was driven by expectations that Trump's presidency could benefit the company while potentially hampering its competitors in the electric vehicle market. This sentiment was further bolstered by Tesla CEO Elon Musk's close ties with the president-elect, whom he supported extensively during the campaign, donating over $130 million to Trump and down-ballot Republicans.
Analysts believe that Trump's win could expedite regulatory approvals for Tesla's autonomous driving technology, giving the company a significant competitive advantage. Additionally, concerns over potential changes to existing tax legislation, including the elimination of electric vehicle tax credits, have raised fears that competing EV models could become less economically viable, further solidifying Tesla's lead in the market.
While Trump has not explicitly outlined policies favoring Tesla, investors appear to be focused on the potential upsides for the company under the incoming administration. Despite some caution from experts over the risks posed by a Trump presidency, such as challenges to California's ability to set its own emissions standards, Tesla's stock has outperformed the broader market, with some analysts predicting further gains as Trump's policies take shape.
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