Tesla Stock: Recent days have seen notable increase in Tesla shares, up more than 12% in the US and an incredible 14% in Frankfurt. With CEO Elon Musk supporting the Republican candidate, investors are optimistic about how a Trump triumph will affect Tesla.
Overnight, early election results showing former President Donald Trump defeating Vice President Kamala Harris gained momentum. Musk has donated more than $75 million to a Trump PAC. Trump has given Musk a key cabinet post on a government efficiency team that Musk says could save trillions.
Though Trump has generally been less supportive of clean energy initiatives, this possible political relationship has spurred speculations that Tesla would gain from his policies. Investors seem to think that Musk’s impact and Tesla’s special market posture would allow the business to flourish independent of whatever green energy help Trump could cut off.
Some analysts, including Dan Ives of Wedbush Securities, who sees this scenario as favourable for Tesla, share this view. Ives claims that Tesla’s size and influence could be an advantage in a market without EV subsidies, especially if Chinese competitors had to pay more taxes, which would drive them out of the United States. This would reduce competition and encourage Tesla’s expansion domestically.
Aside from Tesla, the larger implications of the “Trump trade” have boosted stocks like Coinbase, which surged in Frankfurt as bitcoin hit record highs above $75,000, adding to the daily excitement in financial markets.
Despite Tesla’s share price underperforming relative to the S&P 500 in 2024, the recent increase indicates a resurgence of investor enthusiasm. However, should Trump secure victory, Musk’s ongoing political endorsement and speculation regarding further participation in his administration could significantly alter Tesla’s trajectory, rendering Tesla shares a compelling prospect for investors.