On Friday, the market cap of Tesla Inc. TSLA soared past the $1 trillion mark, a surge attributed to CEO Elon Musk’s bet on President-elect Donald Trump.
What Happened: Following Trump’s victory and his comeback as the 47th U.S. president, Tesla’s stock experienced a sharp rally, propelling Musk’s fortune past the $300 billion mark.
During an appearance on Yahoo Finance, Wedbush analyst Dan Ives praised Musk’s support of Trump as a “poker move for the ages.” He anticipates an expedited autonomous sector, which could be worth $1 trillion alone for Tesla’s AI segment.
See Also: Elon Musk’s Mom Knew He Was A ‘Genius’ By 3 Years Old But Worried He’d ‘End Up In A Basement’
In a separate post, Gene Munster, managing partner at Deepwater Asset Management, noted Tesla’s impressive 44% rally over the past 12 trading days. “This is more than just a meme stock,” he wrote on X, formerly Twitter.
Munster believes that Tesla’s accelerating delivery growth and the long-term opportunity around autonomy will power the fundamentals leading to further price appreciation. “
Why It Matters: Tesla’s stock surged nearly 29% this week following Trump's victory in the U.S. presidential election, as investors grow hopeful that President-elect’s return to the White House could favor the automaker.
The Tesla CEO was a key political supporter of Trump's 2024 campaign, reportedly donating over $130 million to aid his re-election.
Trump's victory speech also praised Musk, dedicating nearly four minutes to call him a “super genius” and highlighting achievements, including SpaceX launches and its expanding satellite internet network.
Musk has also shown interest in leading a proposed Department of Government Efficiency (DOGE) to reduce federal waste. Trump has suggested Musk for the role of “Secretary of Cost-Cutting,” overseeing efforts to trim $2 trillion in federal spending.
Last month, Tesla reported third-quarter revenue of $25.18 billion, reflecting an 8% year-over-year increase. However, the figure fell short of the Street consensus estimate of $25.37 billion, according to data from Benzinga Pro.
Price Action: Tesla shares closed Friday’s session with an 8.19% gain, finishing at $321.22. In after-hours trading, the stock rose further, reaching $322.80, according to Benzinga Pro data.
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo courtesy: Tesla
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
