Musk speaks at a rally for Republican presidential candidate and former President Donald Trump at Madison Square Garden on Sunday, October 27, 2024, in New York, New York.
The Washington Post | The Washington Post | Getty Images
shares Tesla The company’s shares rose more than 6% in morning trading on Friday, pushing the electric vehicle maker’s market value past $1 trillion for the first time.
The company’s shares rose about 27% this week after President-elect Donald Trump won the U.S. presidential election, with investors becoming optimistic that Tesla could benefit from the former president’s return to the White House. Tesla CEO Musk has always been an important ally Throughout Trump’s campaign, he invested at least $130 million in support of Trump’s campaign.
As of Tuesday’s close, Tesla’s market capitalization was $807.1 billion. Before this week’s gains, the automaker’s shares were up about 1% on the year. Tesla’s stock price has risen about 26% so far this year.
Tesla joins a growing club of tech companies now worth more than $1 trillion, including NVIDIA, apple, Microsoft, letter, Amazon and Yuan (Although all of these, except Meta, are worth over $2 trillion).
Wedbush Securities analyst Dan Ives Already said A potential Trump administration could reduce regulations on Tesla and other companies. Trump has previously stated that he may be cut Federal $7,500 electric vehicle tax credit.
“Tesla has unparalleled scale and scope in the EV industry, a dynamic that could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, which, coupled with the potential for higher Chinese tariffs, will continue to Exclude cheaper Chinese electric car manufacturers (BYD, Niohetc.) to avoid flooding the U.S. market in the coming years,” Ives wrote in a note to clients this week.
In its latest earnings update, Tesla report Third-quarter revenue was US$25.18 billion and net profit was US$217 million.
CEO Musk On the earnings call, he said his “best guess” is that “vehicle growth” will reach 20% to 30% next year due to “lower vehicle costs” and “the emergence of autonomous driving technology.” (edited)
Tesla has been developing driverless car technology for more than a decade. Its main U.S. rival, Alphabet’s Waymo, is already ahead and already operates commercial robotaxi services in several major cities.
During the Q3 conference call, Musk said he would use his influence with the Trump-Vance administration to establish a “federal approval process for self-driving cars.” Currently, approvals occur at the state level, and the CEO believes this regulatory hurdle will need to be overcome once Tesla eventually offers systems beyond partial autonomy.
—CNBC’s Lora Kolodny contributed to this report.
