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    • Tesla shares soar to record as Trump wins election
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    Tesla shares soar to record as Trump wins election

    Vaseline Posted on

    Topline

    Shares of Tesla rose 12% on Wednesday morning, sending the company’s shares to a new record high, while adding $15 billion to Elon Musk’s fortune after Donald Trump was re-elected as president, hailing the world’s richest person .

    Key facts

    Shares of Tesla rose to over $280 as of about 10:10 a.m. EST, which would be a new all-time high for the stock, eclipsing a previous high of $273.54 on Oct. 27.

    Trump praised the Tesla CEO as a “super genius” and a “new star” during his victory speech early Wednesday, after Musk spent weeks campaigning for Trump across Pennsylvania before Election Day.

    Wedbush Securities analyst Dan Ives wrote earlier this year that a second Trump presidency would be “an overall negative for the EV industry,” though the financial services firm also saw it as a “huge positive for Tesla” because the company’s “scale and reach” that is unparalleled” in the industry.

    Trump’s plan to impose tariffs on Chinese imports would prevent Tesla’s Chinese competitors BYD — which Ives noted was overtaking Tesla as the world’s largest EV manufacturer at the time — and NIO from “flooding the U.S. market in the coming years,” said Ives.

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    Forbes rating

    Musk is the richest person in the world with a fortune worth $280.3 billion, after his stake – totaling around 13% of Tesla’s outstanding shares – increased by $15 billion, according to our latest estimates.

    Important background

    Musk was one of Trump’s more prominent supporters during his election campaign. The Tesla CEO has poured at least $118 million into his America PAC to help support Trump, meaning Musk was Trump’s second-biggest backer after Timothy Mellon. Musk’s America PAC also awarded $1 million to voters in swing states in a giveaway that was briefly paused by a Philadelphia court. In September, Trump said he would create a “government efficiency commission,” first proposed by Musk, who has indicated he would lead the agency. During the election cycle, Musk appeared with Trump at multiple rallies and supported his campaign on social media. Trump has said he is a “big fan” of electric vehicles, although he said at a previous rally that he should not “get involved in electric vehicles” and claimed in a March interview that the vehicles “cost too much” and that they will all “be made in China.”

    Read more

    ForbesTrump greets ‘super genius’ Elon Musk in victory speech – ahead of likely election winBy means of Siladitya RayForbesHere’s How A Trump Presidency Could Help Tesla Stock Despite Its Gloomy Plans For Electric Vehicles, Analyst SaysBy means of Derek Saul

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