Tesla Inc. (TSLA) shares soared to a new all-time high on Wednesday, driven by optimism that the company's self-driving ambitions will receive a significant boost under the incoming Trump administration.
The electric vehicle maker's stock climbed as much as 5.02% to a record $415 in intraday trading, marking its highest level since November 2021. The rally extended Tesla's post-election surge, with shares up a staggering 64% since Donald Trump's victory on November 5.
This meteoric rise, which has added over $515 billion to Tesla's market capitalization, is fueled by CEO Elon Musk's close ties to the President-elect and expectations that Trump's policies will streamline the rollout of self-driving vehicles and remove tax credits for electric vehicles that benefit Tesla's competitors.
Musk, a key figure in Trump's election campaign, has been appointed to co-lead the newly created Department of Government Efficiency alongside entrepreneur Vivek Ramaswamy. His proximity to the Oval Office and the Trump team's plan to ease U.S. rules for autonomous driving have been major catalysts for Tesla's gravity-defying stock surge.