Trump's victory boosts Tesla's stock price surge, market value returns to one trillion dollars
Tesla's stock price soared over 8% on Friday, bringing its market value back to $1 trillion, as investors expressed optimism about its future following Trump's victory in the U.S. presidential election. This week, Tesla's stock price has increased by approximately 29%, with a year-to-date gain of 30%. Analyst Dan Ives pointed out that Trump's administration may reduce regulations, giving Tesla a competitive advantage in the electric vehicle industry. Tesla's revenue for the third quarter was $25.18 billion, with a net income of $2.17 billion
According to Zhitong Finance APP, Tesla (TSLA.US) stock price soared over 8% on Friday, pushing the electric vehicle manufacturer's market value above $1 trillion.
This week, Tesla's stock price has risen approximately 29%, a surge that occurred after Trump won the U.S. presidential election. Investor expectations are increasingly optimistic that Trump's return to the White House could benefit Tesla. Tesla's CEO Elon Musk has been a significant supporter of Trump, contributing at least $130 million to pro-Trump campaigns.
As of Tuesday's close, Tesla's market value was $807.1 billion. Before this week's stock price increase, the company's stock had only risen about 1% this year. Currently, Tesla's year-to-date increase has reached approximately 30%.
Tesla has rejoined the ranks of technology giants with a market value exceeding $1 trillion, including Nvidia (NVDA.US), Apple (AAPL.US), Microsoft (MSFT.US), Alphabet (GOOG.US, GOOGL.US), Amazon (AMZN.US), and Meta (META.US), although all companies except Meta have market values exceeding $2 trillion. Tesla's market value first surpassed $1 trillion in October 2021.
Wedbush Securities analyst Dan Ives stated that Trump's administration could mean reduced regulation for Tesla and other companies.
Ives said, "Tesla has unparalleled scale and scope in the electric vehicle industry, and this dynamic could give Musk and Tesla a significant competitive advantage in a non-electric vehicle subsidy environment. Additionally, higher tariffs from China are expected to further hinder Chinese electric vehicle manufacturers like BYD and Nio from flooding the U.S. market in the coming years."
Trump has previously indicated that he might cut the federal $7,500 electric vehicle tax credit. Historically, these tax credits have somewhat driven Tesla's sales growth.
In its recent earnings update, Tesla reported third-quarter revenue of $25.18 billion and a net income of $2.17 billion.
Musk stated during the earnings call that his "best guess" is that due to "low-cost vehicles" and the emergence of "autonomous driving technology," next year's "vehicle growth" will reach 20% to 30%.
Tesla has committed to and developed autonomous driving technology for over a decade. However, its main competitor in the U.S., Waymo, a subsidiary of Alphabet, has taken the lead and operates commercial autonomous taxi services in several major cities.
During the third-quarter earnings call, Musk mentioned that he would leverage his influence with the Trump administration to establish a "federal approval process for autonomous vehicles." Currently, each state has its own approval process, which Musk believes is a regulatory hurdle Tesla needs to overcome, especially as the company eventually rolls out technology that goes beyond partial autonomous driving systems