Tesla CEO and X (formerly Twitter) owner Elon Musk saw his wealth soar by approximately $13 billion shortly after his ally, Donald Trump, clinched the U.S. presidency. Investors appear optimistic that Trump’s win could bring favorable conditions for Tesla (TSLA), leading to a 13% jump in Tesla’s stock price at Wednesday’s market opening, as reported by CNN.
The surge in Tesla shares added substantial value to Musk’s 411 million shares in the company, providing him a remarkable return on his reported $119 million contributions to Trump’s campaign through a political action committee (PAC). Musk, one of Trump’s prominent supporters in tech, not only made significant donations but also engaged with the former president in an interview on X, underscoring his alignment with Trump’s vision.
Despite Trump’s win, uncertainties remain for the electric vehicle (EV) sector. Trump has voiced concerns over EVs, labeling them costly and potentially detrimental to traditional auto industry jobs. He has also promised to revoke what he refers to as “Biden’s EV mandate,” even though no formal mandate exists, leaving the EV market on unsure footing.
Analysts suggest that while Trump’s policies might impact federal support for EVs, Tesla could adapt to the changing landscape and may even benefit from a reduced-subsidy environment. With a proven track record of innovation, Tesla is expected to retain a competitive edge, regardless of policy shifts, as it continues to lead in the EV industry.