Tesla Stock Surges Over 13% In Premarket: What Is Going On

Tesla Inc. TSLA shares are up by over 13% in pre-market trading on Wednesday over a likely Donald Trump victory in the U.S. Presidential elections.

What Happened: According to The New York Times, Trump currently has over 95% chance of victory given he already has 267 of the 270 electoral votes needed to win.

At the time of writing, the Tesla stock was up 13.3% in premarket trading, at $284.90, according to Benzinga Pro data.

Tesla CEO Elon Musk endorsed Trump in July and has been actively campaigning for the former President both offline and online. Musk even campaigned for Trump in the swing state of Pennsylvania in October.

Trump, meanwhile, has expressed his intent to set up a government efficiency commission led by Musk if elected President. The commission will be tasked with conducting a complete financial and performance audit of the federal government and recommending reforms, Trump said in September.

According to Wedbush analyst Dan Ives, the biggest positive from a Trump win would be for Tesla and Musk.

"We believe a Trump win is a negative for the EV industry as the EV rebates/tax incentives get pulled, however for Tesla a huge positive for scale/price advantage," Ives said on Wednesday. The analyst added that a Trump win could add $40-$50 to Tesla's stock.

Tesla’s Frankfurt-listed shares are also up by over 14.5%.

Price Action: Year-to-date, Tesla shares are up 1.2%, after the stock closed up 3.5% at $251.44 on Tuesday, according to Benzinga Pro data.

Check out more of Benzinga's Future Of Mobility coverage by following this link.

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Photo courtesy: Tesla