Bengaluru, India – The electric vehicle giant Tesla saw a significant surge in its stock value on Monday, with shares rising over 8%. This increase follows a pattern of growth that began after President-elect Donald Trump’s victory in the recent election. Analysts believe that Tesla’s CEO, Elon Musk’s, close relationship with the incoming President has played a role in the company’s recent success.
At $348.30 per share, Tesla is on track to add nearly $87 billion to its market value, signaling a strong upward trajectory for the company. Since Trump’s election win last week, Tesla’s stock has soared by nearly 28%, marking the first time in two years that the company has surpassed $1 trillion in market value.
Musk’s public support for Trump over the past months has fueled speculation about the benefits his companies could receive under the new administration. His strategic contributions to pro-Trump causes, totaling at least $119 million, have raised eyebrows and led to discussions about the potential impact on his various ventures.
Analysts like Susannah Streeter, head of money and markets at Hargreaves Lansdown, anticipate that Musk’s connections with Trump could lead to opportunities for cutting bureaucratic red tape and streamlining regulations. This could prove beneficial for Musk’s companies, known for their groundbreaking innovations in technology.
While Tesla’s self-driving technology has faced scrutiny from regulators, Musk’s push towards autonomous driving and robotaxis highlights the company’s commitment to technological advancement. The recent announcement by Trump to establish a government efficiency commission headed by Musk further solidifies the entrepreneur’s potential influence in shaping government policies.
Despite concerns about preferential treatment, especially regarding Musk’s businesses involved in government contracts like the Starlink broadband system, the likelihood of legal challenges may not hinder his ventures right away. Analysts suggest that Tesla’s significant market presence may shield it from certain policy changes that could impact smaller startups in the electric vehicle industry.
Overall, Tesla’s recent success is not only a testament to its innovative products but also a reflection of the intricate relationship between technology companies and government policies. The future implications of Musk’s ties with the Trump administration remain to be seen, but for now, investors are closely watching the company’s growth.
