Tesla Stock Is Racing Higher Wednesday: What's Driving The Action?

Tesla Inc TSLA shares are trading higher Wednesday after CEO Elon Musk announced plans to double United States vehicle production within two years.

What Happened: In a new X post late Monday, Musk committed to doubling Tesla’s US vehicle production totals within two years to align with changes from the Trump administration.

“In support of the policies of President @realDonaldTrump and to demonstrate our confidence in the future of the United States, @Tesla commits to doubling vehicle production in the US within 2 years!,” Musk said in the social media post.

The news comes after U.S. President Donald Trump made headlines on Tuesday for lining up Tesla vehicles outside of the White House. Trump announced that he was going to buy one of the Tesla models in support of Musk and his recent efforts with the Department of Government Efficiency (DOGE).

Musk has faced backlash for his involvement with DOGE and close ties to the Trump administration. Tesla vehicles and offices were reportedly vandalized in recent weeks in response to Musk’s efficiency push, per Reuters.

“They’re harming a great American company,” Trump reportedly told reporters at the White House on Tuesday.

“Let me tell you, you do it to Tesla, and you do it to any company, we’re going to catch you, and … you’re going to go through hell.”

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Tesla shares have also been cut in half over the past few months as investors have raised concerns that Musk’s role at DOGE could distract him from leading Tesla, similar to investor concerns that were raised after Musk purchased Twitter, now X.

As previously reported by Benzinga, Future Fund’s Gary Black called Trump’s endorsement of Tesla “potentially huge” for the EV maker as it could boost Trump supporters’ willingness to purchase Tesla vehicles for themselves.

“Recall that 77.3M (49.9%) of American adults who voted selected Trump. Applying 49.9% to the total U.S. adult population of 260M implies 129.7M who likely align themselves with Trump and respect Trump's opinions,” Black said in an X post.

TSLA Price Action: Investors appear to be cheering Trump’s endorsement as Tesla shares closed Tuesday up more than 3.75%. Tesla stock was up 6.47% Wednesday morning at $245.50 at publication time, according to Benzinga Pro.

Photo: courtesy of Tesla.