Shares of Tesla rose more than 6% in morning trading on Friday, pushing the electric vehicle maker’s market cap past $1 trillion.

The company’s shares have risen about 27% this week after newly elected President Donald Trump won the US presidential election and investors have become optimistic that the former president’s return to the White House could benefit Tesla. Tesla CEO Elon Musk has been a key ally for Trump during his campaign, pouring at least $130 million into a pro-Trump campaign.

Tesla had a market cap of $807.1 billion as of Tuesday’s close. Before this week’s rally, the automaker’s shares were up about 1% this year. Shares of Tesla are now up about 26% this year.

Tesla rejoins a growing club of tech names now worth more than $1 trillion Nvidia, Apple, Microsoft, Alphabet, Amazon And Meta (although all but Meta are worth over $2 trillion). Tesla’s market cap crossed the $1 trillion mark for the first time in October 2021.

Wedbush Securities analyst Dan Ives has said a potential Trump administration could mean less regulation for Tesla and other companies.

“Tesla has the scale and scope unparalleled in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled with likely higher Chinese tariffs that would continue to drive out cheaper Chinese EV players . (BYD, Nio, etc.) so as not to flood the US market in the coming years,” Ives wrote in a note to customers this week.

Trump has previously said he may cut the $7,500 federal electric vehicle tax credit. These credits have historically contributed to Tesla vehicle sales.

In its most recent earnings update, Tesla reported revenue of $25.18 billion and net income of $0.217 billion in the third quarter.

CEO Elon Musk said on the earnings call that his “best guess” was that “automotive growth” would be 20% to 30% next year, due to “cheaper vehicles” and the “advent of autonomy.” (edited)

Tesla has been promising and developing self-driving vehicle technology for more than a decade. Its main US competitor, Alphabet-owned Waymo, has jumped ahead and is already operating commercial robotaxi services in several major cities.

During the third quarter call, Musk said he would use his influence with the Trump-Vance administration to create a “federal approval process for autonomous vehicles.” Currently, approvals are taking place at the state level, which the CEO sees as a regulatory hurdle that Tesla will have to overcome once it finally offers more than partially automated driving systems.

— CNBC’s Lora Kolodny contributed to this report.

Correction: This story has been updated to correct the year Tesla’s market cap crossed the $1 trillion mark for the first time.