Tesla Stock Soars 29% This Week as Market Cap Crosses $1 Trillion
Investor Optimism Grows with Trump’s Election Win; Musk Expected to Influence Autonomous Vehicle Regulation
Tesla’s Market Cap Surpasses $1 Trillion Amid Anticipated Policy Boost from Trump Presidency
Tesla’s market value soared above $1 trillion on Friday in a strong rally, with investor expectations high that Elon Musk’s companies may receive favorable treatment under President-elect Donald Trump, following Musk’s notable support during the election.
Tesla’s stock rose by 8.2%, closing at $321.22, pushing the company’s valuation above the trillion-dollar mark for the first time in over two years.
With a 29% increase this week, Tesla added over $230 billion in market value, marking its strongest weekly performance since January 2023.
“Tesla and Elon Musk are likely the biggest beneficiaries of this election, and we expect Trump’s win could speed up regulatory approval for the company’s autonomous driving technology,” commented Garrett Nelson, senior equity analyst at CFRA Research.
Insiders suggested Musk might use this political momentum to advocate for regulations that support Tesla’s autonomous vehicle plans and potentially influence the U.S. National Highway Traffic Safety Administration (NHTSA) to delay enforcement actions regarding Tesla’s existing driver-assistance systems, a source informed Reuters.
Musk has centered Tesla’s focus on autonomous vehicle technology, stepping back from earlier plans to create a budget-friendly car priced under $30,000. However, technical and regulatory challenges have slowed Tesla’s path to commercializing this technology.
“If Musk can persuade Trump to set up federal guidelines for autonomous vehicles, it would benefit the auto industry by providing one consistent set of rules, rather than different standards across states,” explained David Whiston, equity strategist at Morningstar.
According to Forbes’ real-time billionaire tracker, Musk’s wealth has now surpassed $300 billion.
Tesla’s shares saw another boost in late October after the company reported improved profit margins and projected delivery growth of 20% to 30% for the upcoming year.
For years, Tesla has held the title of the world’s most valuable carmaker, far surpassing competitors like Japan’s Toyota and China’s BYD.
Tesla’s stock currently trades at 93.47 times its 12-month forward earnings, in comparison to 38.57 for Nvidia, 30.77 for Microsoft, and 6.29 for Ford.
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