Tesla market value surpasses $1 trillion after Musk-backed Trump wins presidency

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Tesla's market value broke the $1 trillion mark for the first time in two years, just days after Trump won another four-year term in the Oval Office. CEO Elon Musk supported Trump.

The relationship between President-elect Trump and billionaire Elon Musk sent Tesla’s market value above the $1 trillion mark after a rally on Friday. Musk, who is the CEO of Tesla, endorsed Trump's bid to return to the White House and was a prominent financial backer of his campaign. Reuters reported on Friday that the electric automobile maker’s shares rose to $321.22, or up 8.2%, putting the company’s valuation above the $1 trillion mark for the first time in over two years.

Tesla and CEO Elon Musk are perhaps the biggest winners from the election result, and we believe Trump's victory will help expedite regulatory approval of the company's autonomous driving technology," Garrett Nelson, senior equity analyst at CFRA Research, said. Trump has been critical of incentives and subsidies for EVs, but has commended Musk's work with Tesla and praised him as a "super genius" during his victory speech early Wednesday morning.

He reportedly ditched plans to build an economy car priced under $30,000 so he could focus on self-driving technology. However, regulatory and development hurdles have delayed the technologies for commercial use. Last month, the NHTSA said it was investigating 2.4 million Tesla vehicles with Full Self-Driving software after four collisions were reported, including one fatal crash.

Tesla's FSD technology has been in development for years and eventually aims to reach a high level of automation capability, where the vehicle can do most driving tasks without human intervention. However, it has faced legal scrutiny stemming from at least two fatal accidents, including an incident in April when a Model S in FSD mode hit and killed a motorcyclist in the Seattle area.

 

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