Tesla maintains its momentum on the U.S. Nasdaq following Donald Trump‘s victory in the presidential election, with shares rising another 5% on Monday to trade above 340 dollars (319 euros per share).
According to market sources consulted by Europa Press, the American electric vehicle manufacturer is expected to add up to 87 billion dollars in market capitalization.
Since the Republican’s win over Democrat Kamala Harris at the polls on November 5, Tesla’s market value has surged by more than 28%, surpassing the trillion-dollar mark.
With investors favoring the Republican, the market is optimistic about the influence Tesla founder Elon Musk could wield in the next U.S. administration, with speculation that he could play a significant role in Trump’s new government.
In fact, the magnate promised the South African-born entrepreneur during the campaign that he would be the new “Secretary of Cost Reduction,” potentially giving him the authority to downsize the federal workforce.
According to Republican Party records, Musk has contributed up to $130 million dollars over recent months to Trump’s rallies, advertising, and speeches, as well as to his vice-presidential candidate, J.D. Vance.
Musk has also utilized his social network, X, to issue numerous messages of support for the New York magnate.
In response, Trump proposed a 10% import tariff on all foreign-made products during the campaign, and up to 100% on imported vehicles.
If implemented, this measure could initially benefit U.S. manufacturers like Tesla, along with combustion-based brands such as Ford and General Motors.
Investors are optimistic that Musk—and his companies—could see prosperous times in the next administration.
In his victory speech, Trump was clear about his admiration for the South African entrepreneur, saying, “We have a new star, a star is born, Elon… he’s an incredible guy.”
However, while Tesla’s rise in the electric vehicle industry could offer it a distinct competitive edge in a future with fewer subsidies for battery cars, other automakers are bracing for an uphill battle once Trump is sworn in again on January 20, 2025, at the Capitol steps in Washington.
