Tesla Inc.'s stock price soared in pre-market trading on Wednesday as investors cheered Donald Trump's victory in the 2024 U.S. presidential election. The surge reflects optimism that the electric vehicle (EV) maker could benefit from a Trump administration's policies and its CEO Elon Musk's close ties with the former president.
Shares of Tesla jumped as much as 15.1% to $289.34 in pre-market trading, setting the stage for the company to hit new highs at the market open. The rally added over $120 billion to Tesla's market capitalization, pushing it above $900 billion for the first time since July 2023.
During his victory speech, Trump singled out Musk for praise, calling him a "super genius" and "a new star." The former president expressed admiration for SpaceX's achievements and claimed the company's Starlink internet service "saved a lot of lives" during Hurricane Helene in North Carolina.
Musk, who emerged as one of Trump's biggest backers during the campaign, donating over $130 million to support his candidacy, is expected to play a significant role in the new administration. Trump has agreed to appoint Musk as the head of a "Department of Government Efficiency" commission aimed at reducing government spending and regulations.
While Trump has criticized electric vehicles and expressed skepticism about transitioning to green energy, analysts believe his administration's policies could ironically benefit Tesla due to its scale and competitive advantage in the EV industry.
