Tesla's market cap tops $1 trillion following Trump's election victory
Tesla's shares jumped 8% on Friday, pushing the company's market cap past the $1 trillion threshold. The surge comes after a strong week for the electric vehicle maker's stock, which has gained nearly 29% since Donald Trump won the 2024 US presidential election. Before this week, Tesla had a market cap of $807.1 billion and its shares had seen a modest year-to-date growth of about 1%.
Musk's support for Trump fuels investor optimism
Tesla CEO Elon Musk has been one of Trump's loudest supporters on the campaign trail, donating more than $130 million to pro-Trump causes. This alliance has further stoked investor hopes of Tesla reaping benefits from a new Trump administration. Wedbush Securities analyst Dan Ives hinted that less regulation could be coming for companies like Tesla, giving them a leg-up in the EV race.
Tesla's trillion-dollar club and future prospects
With its market cap surpassing the $1 trillion mark, Tesla now shares the trillion-dollar club with tech giants NVIDIA, Apple, Microsoft, Alphabet, Amazon, and Meta. This isn't Tesla's first time hitting this milestone; it had achieved a $1 trillion market cap back in October 2021. In its most recent earnings report for Q3 2024, Tesla reported revenue of $25.18 billion and net income of $2.17 billion.
Musk's wealth soars as Tesla leads global auto market
The stock rally this week has contributed over $230 billion to Tesla's market cap, making it the company's best performance since January 2023. Thanks to this surge, Musk's wealth has now crossed $300 billion, according to Forbes's real-time billionaires list. Tesla remains the world's most valuable automaker for years, outpacing competitors such as Japan's Toyota Motor and China's BYD by a huge margin.
