Elon Musk on stage before Republican presidential nominee former President Donald Trump speaks at a rally at Madison Square Garden in Latest York, NY on Sunday, October 27, 2024.Â
The Washington Post | The Washington Post | Getty Images
Shares of Tesla climbed 8% on Friday, pushing the electrical vehicle maker’s market cap past $1 trillion.
The corporate’s stock has rallied about 29% this week after Donald Trump won the U.S. presidential election and investors have grown optimistic that the previous leader’s return to the White House may gain advantage Tesla. Elon Musk, Tesla’s CEO, has been a key ally for Trump throughout his campaign, pouring at the least $130 million right into a pro-Trump campaign effort.
Tesla had a market cap of $807.1 billion through Tuesday’s close. Before this week’s rally, shares of the carmaker were up about 1% for the yr. Tesla’s stock is now up about 30% yr up to now.
Tesla rejoins a growing club of tech names which might be now price greater than $1 trillion, including Nvidia, Apple, Microsoft, Alphabet, Amazon and Meta (though all but Meta are price greater than $2 trillion). Tesla’s market cap first crossed the $1 trillion mark in October 2021.
Wedbush Securities analyst Dan Ives has said that a possible Trump administration could spell less regulation for Tesla and other firms.
“Tesla has the size and scope that’s unmatched within the EV industry and this dynamic could give Musk and Tesla a transparent competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that may proceed to push away cheaper Chinese EV players (BYD, Nio, etc.) from flooding the U.S. market over the approaching years,” Ives wrote in a note to clients this week.
Trump has said previously he may cut the federal $7,500 electric vehicle tax credit. Those credits have helped to drive sales of Tesla vehicles historically.
In its most up-to-date earnings update, Tesla reported revenue of $25.18 billion and net income of $2.17 billion within the third quarter.
CEO Musk said on the earnings call that his “best guess” was that “vehicle growth” would reach 20% to 30% next yr, resulting from “lower cost vehicles” and the “advent of autonomy.”
Tesla has been promising, and developing, driverless vehicle technology for greater than a decade. Its key U.S. competitor, Alphabet-owned Waymo, has pulled ahead and is already operating business robotaxi services in several major cities.
On the third-quarter call, Musk said he would use his sway with a Trump-Vance administration to ascertain a “federal approval process for autonomous vehicles.” Currently, approvals occur on the state level, which the CEO sees as a regulatory hurdle Tesla might want to overcome once it finally offers greater than partially automated driving systems.
— CNBC’s Lora Kolodny contributed to this report.
Correction: This story has been updated to correct the yr Tesla’s market cap crossed $1 trillion for the primary time. Tesla’s net income was $2.17 billion within the third quarter. An earlier version misstated the figure.
