Teslas (TSLA+6.85%) market cap reached $ 1 trillion Friday morning, as Donald Trump’s election victory has helped the EV maker’s stock price this week.

The company’s stock price rose more than 6% to about $313 in intraday trading on Friday. It’s the first time Tesla shares have risen above $300 per share since September 2022. The EV giant is now the ninth largest company in the world by market capitalization.

Tesla CEO Elon Musk’s alliance with Trump It appears to be paying off, potentially giving Tesla a significant advantage under the new administration – including some influence over the regulation of self-driving vehicles, while at the same time putting its competitors at a disadvantage. This includes potential influence on regulations regarding self-driving vehicles.

Gene Munster, managing partner at Deepwater Asset Management, highlighted that Tesla shares are up 44% over the past 12 trading days, easily outpacing the Nasdaq’s 4% gain over the same period.

“This is more than just a meme stock,” Munster wrote in a post on X on FridayMusk’s social media company. “Accelerating supply growth next year (flat growth in 2024 and a +20% increase in 2025) and the long-term opportunities around autonomy will strengthen the fundamentals that should lead to further price increases.”

In a message earlier this weekMunster wrote that Tesla’s rise in recent days is broadly “based on emotion, that emotion being that Elon made a big gamble and was right. This gives investors confidence that his next big bet has a greater potential to succeed. His next big gamble is autonomy.”

Musk has becoming a close ally of Trump even in recent months spend election night with him at Trump Mar-a-Lago resort in Florida. Earlier this year, Musk founded and has donated at least $80 million to a super PAC that supported Trump’s campaign.

And Musk, who also heads several other companies including SpaceX, is now poised to play some role or influence in the incoming Trump administration.

Musk has agreed to lead what he and Trump are doing Ministry of Government Efficiency (DOGE), a committee that would behavior a “full financial and performance audit of the entire federal government” and recommending reforms. Musk has said he would cut spending “at least.” $2 trillion of federal spending, which is likely a difficult task given the expenditures the federal government has incurred $6.75 trillion in fiscal year 2024.

As part of that task, Musk said he would in favor for a national approach to regulating self-driving vehicles – a key market for Tesla – and reducing over-regulation, which he has done repeatedly criticized because he held his companies back. SpaceX, Neuralink, X (META-1.17%), and Tesla have together been the subject of at least twenty recent investigations or reviews.

But whatever his is the exact role it might play in the administration remains unclear. Cantor Fitzgerald CEO Howard Lutnick, who is helping lead Trump’s transition team, said before Election Day that Musk would work “alongside” the government and “write software” to help the government reduce spending. That would likely allow Musk to continue running his companies without divesting, as he would have to do if he took on an official role.

While Trump’s victory is good for Tesla, it is expected that this will be the case less friendly to other automakers with EV plans. He is expected to freeze President Joe Biden’s provisions Inflation Reduction Act of 2022, which provided tax breaks of $7,500 for American-made electric cars. Musk has supported ending the tax credit, believing it would boost Tesla sales while beating rivals.