Tesla Soars 12%, Record Shares Push Elon Musk’s Wealth Up by $15 Billion After Trump’s Win
Shares of Tesla saw a significant surge of 12% Wednesday morning, propelling the company's stock to new record highs and adding $15 billion to Elon Musk's personal fortune. The surge sent Tesla's stock to over $280 per share as of 10:10 a.m. EST, surpassing its previous high of $273.54 set on October 27. This spike in Tesla’s stock price came just after Donald Trump was reelected as President of the United States, with Trump offering lavish praise for Musk during his victory speech.
Trump referred to Musk as a "super genius" and a "new star," recognizing him not only as a leading entrepreneur but also as a key ally during the election cycle. Musk had been actively involved in Trump's campaign, particularly in Pennsylvania, where he spent weeks rallying support for the Republican candidate. This praise from the president came after Musk had poured significant financial resources into supporting Trump's campaign, contributing at least $118 million to the “America PAC,” making him Trump’s second-largest backer behind Timothy Mellon.
While analysts like Dan Ives of Wedbush Securities had earlier suggested that a second Trump presidency could be negative for the electric vehicle (EV) industry overall, the firm also viewed it as a positive for Tesla. This was largely due to Tesla's market position, which Ives argued was unmatched in the industry in terms of scale and scope. Ives also pointed to Trump’s proposed tariffs on Chinese imports as a factor that could protect Tesla from increased competition, particularly from Chinese EV giants like BYD and NIO, who have been expanding their presence globally.
Musk's influence in the campaign went beyond financial backing. His involvement was marked by several public appearances at rallies with Trump and active support on social media. Musk's America PAC also made waves with its controversial initiative to give away $1 million to voters in swing states, although this was briefly paused by a Philadelphia court in September. In addition, Trump echoed Musk’s policy ideas, including the creation of a “government efficiency commission,” a proposal initially put forward by Musk, with the Tesla CEO indicating that he would be interested in leading the agency.
While Trump has expressed admiration for electric vehicles and called Musk a “super genius,” his stance on EVs has been somewhat inconsistent. At earlier rallies, Trump suggested not to “bother with the electric” and claimed that all EVs would eventually be made in China due to their high cost.
Despite some policy differences, it is clear that the relationship between Trump and Musk remains one of mutual admiration, with Musk’s endorsement likely providing political benefits for both figures as Tesla continues to dominate the EV market.
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