Monday 11/November/2024 – 04:11 PM
Tesla shares jumped more than 7% before their market launch on Monday, continuing a significant rise on investors’ bets that the automaker will benefit from CEO Elon Musk’s support for US President-elect Donald Trump.
Tesla stock continues its significant rise due to the Trump-Elon Musk alliance
Tesla is expected to add more than $74 billion to its value if pre-market gains continue, as the stock has jumped nearly 28% since Trump’s election victory was announced on Wednesday, surpassing the $1 trillion market cap for the first time in two years.
Tesla shares rose just over 1% during the year before Trump secured his second term in the White House.
Analysts said that Musk had been supporting Trump for months, hoping that his close ties to the current president-elect would enable his companies to benefit under the new administration.
Federal records show the billionaire contributed at least $119 million to a pro-Trump spending group.
On the other hand, Tesla was a beneficiary of a number of policies that Trump opposed, such as solar and electric vehicle credits included in the Biden administration’s inflation-reducing law.
