Elon Musk speaks during a rally by Republican presidential candidate and former President Donald Trump at Madison Square Garden in New York, New York, Sunday, October 27, 2024.
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shares Tesla The company’s shares rose more than 5% in morning trading on Friday, pushing the electric car maker’s market value past $1 trillion for the first time.
The company’s shares rose about 27% this week after President-elect Donald Trump won the U.S. presidential election, with investors becoming optimistic that Tesla could benefit from the former president’s return to the White House. Tesla CEO Elon Musk has been a key ally of Trump throughout his campaign, investing at least $130 million in support of Trump’s campaign.
As of Tuesday’s close, Tesla’s market capitalization was $807.1 billion. Before this week’s gains, the automaker’s shares were up about 1% on the year. Tesla’s stock price has risen about 26% so far this year.
Tesla joins a growing club of tech companies now worth more than $1 trillion, including NVIDIA, apple, Microsoft, letter, Amazon and Yuan (Although all of these, except Meta, are worth over $2 trillion).
Wedbush Securities analyst Dan Ives Already said A potential Trump administration could reduce regulations on Tesla and other companies. Trump has previously stated that he may be cut Federal $7,500 electric vehicle tax credit.
“Tesla has scale and scope unparalleled in the EV industry, a dynamic that could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, which, coupled with potentially higher Chinese tariffs, will continue Exclude cheaper Chinese electric car manufacturers (BYD, Niohetc.) to avoid flooding the U.S. market in the coming years,” Ives wrote in a note to clients this week.
In its latest earnings update, Tesla report Third-quarter revenue was US$25.18 billion and net profit was US$217 million.
—CNBC’s Lora Kolodny contributed to this report.
