Tesla stock extends rally as Musk-Trump alliance fuels gains | REUTERS
Tesla’s stock just took off! It’s soared by over 8% in a single day and has gone up almost 28% since Trump’s big win. Now, Tesla’s worth is back above $1 trillion – a mark it hadn’t hit in two years! I think Musk and Trump teaming up seems to be boosting confidence. It feels like people really believe this pair could bring big changes.
I will put the transcript down below
President Trump must win. Tesla's shares extended last week's rally with a jump of over 8% in early trading on Monday. It was fueled by investor bets that the automaker would benefit from its CEO Elon Musk's close ties with President-elect Donald Trump.
Tesla is expected to add nearly $87 billion to its value if gains hold. The stock has jumped nearly 28% since Trump's election victory was declared on Wednesday last week. The automaker surpassed $1 trillion in market value for the first time in 2 years.
Tesla's year-to-date gains were just over 1% before Trump secured his second term at the White House, and analysts said Musk hoped his strong support of Trump over recent months would position his companies to benefit under the new administration. Federal records show the South African billionaire contributed at least $109 million to a pro-Trump spending group.
From Tesla's electric vehicles to SpaceX rockets, Musk's business ventures depend heavily on government regulation, subsidies, or policy. In September, Trump said he would establish a government efficiency commission headed by Musk to cut federal spending.
One analyst said claims of "preferential treatments" have the potential to end up in court, but given that the litigation route is long and difficult, Musk's businesses have plenty of time to benefit. Trump has also vowed to pare back certain EV incentives of the Biden administration, but analysts said it's startups that are likely to take a bigger hit than Tesla because of the automaker's heft in the market.