On Friday, Tesla Inc.'s market capitalization skyrocketed past $1 trillion, propelled by Elon Musk's public backing of President-elect Donald Trump. The surge in Tesla's stock price following Trump's victory as the 47th U.S. president resulted in Musk's wealth exceeding $300 billion, with analysts lauding this as a savvy move by the CEO.
During an interview on Yahoo Finance, Wedbush analyst Dan Ives commended Musk's support for Trump as a shrewd business tactic, foreseeing a rapid progress in Tesla's autonomous sector that could potentially be valued at $1 trillion. Another industry expert, Gene Munster from Deepwater Asset Management, highlighted Tesla's remarkable 44% rally over a 12 trading day period, emphasizing that the company's growth is more than just speculative trading.
The positive investor sentiment towards Tesla was evident through a near 29% surge in the company's stock price following Trump's electoral win, as market participants expressed optimism about the automaker benefiting from the President-elect's policies. Musk's significant financial contribution to Trump's campaign further solidified his influence in the political realm, with the President-elect showering accolades on him during his victory speech by calling him a "super genius" and recognizing his achievements in the space sector.
In addition to his success with Tesla and SpaceX, Musk has also expressed interest in contributing to governmental efficiency through a proposed Department of Government Efficiency (DOGE) to curtail federal spending. Speculation around Musk potentially holding a government position under Trump has arisen, with the President-elect suggesting him for the role of "Secretary of Cost-Cutting," tasked with reducing federal expenditure by $2 trillion. Tesla's recent financial performance, including a third-quarter revenue slightly below expectations but showing an 8% year-over-year growth, contributed to further market analysis and stock price movements for the company.