Musk, who has received endless praise from Trump, welcomes policy "nurturing," and Tesla's autonomous driving approval may see an "acceleration."

According to Zhitong Finance APP, Tesla (TSLA.US) stock price surged 14.7% on Wednesday, with a trading volume exceeding 148 million shares, reaching a 52-week high of $289.59 during the session, and its market value is expected to surpass the $1 trillion mark. This increase is partly attributed to investors' enhanced confidence in Tesla's autonomous driving technology after Trump praised Elon Musk as a "super genius" in his victory speech. Gene Munster, an analyst at Deepwater Asset Management, predicts that the Trump administration may approve Tesla's autonomous driving plans more quickly, which is crucial for technological advancement.

In Wednesday's trading, Tesla's stock performed exceptionally well, closing up 14.7% with a trading volume of 148 million shares, hitting a 52-week high of $289.59, and its market value is expected to enter the $1 trillion club. This surge in stock price is related to investor sentiment and confidence, especially after Trump's victory speech praising Elon Musk as a "super genius," leading to a more optimistic market outlook for Tesla's investment prospects in the autonomous driving sector.

Gene Munster from Deepwater Asset Management believes that Trump's election as president could positively impact Tesla's autonomous driving plans, as the federal government may approve related plans more quickly.

He emphasized that this is particularly important because the regulatory challenges for autonomous driving are greater than the technological challenges. Munster further analyzed that if Tesla can capture 50% of the U.S. ride-hailing market by 2030, its revenue could increase by 20%, or about $5 billion.

The autonomous driving industry is experiencing strong momentum. Last month, Tesla held its highly anticipated robotaxi event, while Chinese autonomous vehicle newcomer XPeng (PONY.US) filed for an IPO on Nasdaq, and Uber Technologies (UBER.US) announced a series of notable partnerships in autonomous vehicles.

Additionally, last week, Waymo announced that its Waymo One service currently provides over 150,000 paid rides per week, with fully autonomous driving mileage exceeding 1 million miles, shocking the autonomous driving industry.

Despite the overall strong performance of the autonomous driving industry, concerns about government support for the electric vehicle sector have overshadowed enthusiasm for autonomous driving approvals, leading to a 2.3% decline in the iShares Autonomous Electric Vehicles and Technology ETF (IDRV.US).

Meanwhile, Uber Technologies' stock rose 0.3%, Cruise's parent company General Motors (GM.US) increased by 2.5%, and Waymo's parent company Alphabet (GOOGL.US) climbed 4.0%.

Musk is a key supporter of Trump's 2024 campaign and a beneficiary of his policies

As a significant donor to Trump's campaign funds, Musk is expected to play an important role in the Trump administration. Trump has announced the establishment of a government efficiency committee led by Musk, aimed at cutting federal spending It is worth mentioning that Elon Musk, who owns the Starlink satellite broadband system and Tesla, is already a major contractor for the U.S. Department of Defense, and his influence is expected to further expand. Although Trump opposes certain policies, such as the solar and electric vehicle tax credits in the Inflation Reduction Act passed by the Biden administration, these policies have limited impact on Musk's business due to Tesla's large market sales. In contrast, Trump's stance on reducing electric vehicle mandates may have a greater impact on Musk's competitors.

Electric vehicle industry groups have expressed readiness to work with Trump, despite his vow to reverse many of his predecessor's pro-electric vehicle policies. Triple D Trading trader Dennis Dick pointed out that Musk is leveraging his relationship with Trump to hedge his bets and may thus receive favorable treatment from the Trump administration. Particularly in obtaining regulatory approval for full self-driving, Trump's support could help Musk secure approvals more quickly.

Meanwhile, Tesla's competitors Lucid Group (LCID.US) and Rivian Automotive (RIVN.US) saw their stock prices drop by 5.3% and 8.3%, respectively. Analysts stated that Trump's commitment to imposing high tariffs on Chinese imports, especially electric vehicles, could shield Tesla from competitive pressure.

Musk's approach to managing conflicts of interest across the automotive, aerospace, medical, construction, and artificial intelligence sectors remains unclear, as does whether he will leverage these interests in the context of a Trump administration relaxing regulations. Mamta Valechha, a non-essential consumer goods analyst at Quilter Cheviot, noted that positions overseeing deregulation and budget cuts would allow Musk to influence U.S. policies on artificial intelligence, space exploration, and electric vehicles, all of which he has direct interests in.

Musk may use his influence to reduce regulatory oversight of his businesses. He has consistently criticized the federal government's scrutiny of his SpaceX rocket business and seeks to expedite approvals for his autonomous driving technology. As a staunch supporter of carbon-free energy, Tesla is a major supplier of solar systems and batteries.

However, Trump has pledged to shut down the offshore wind industry and rescind all unspent funds under the Inflation Reduction Act. Nevertheless, Republican-majority states have benefited significantly from this act, and Musk is also building his second U.S. electric vehicle factory in Texas