They set a new record and boosted the fortune of CEO Elon Musk amid possible tariffs that could deter Chinese competitors from entering the US market.
After being re-elected president of the United States, Donald Trump heaped praise on the businessman, who is the richest person in the world.
In early trading, Tesla shares rose to more than $280, marking a new record that eclipsed the previous high of $273.54 set on Oct. 27.
Trump’s victory and its impact on the electric car sector
Trump praised the Tesla CEO as a «super genius» and a «rising star» during his victory speech early Wednesday, after weeks of campaigning that saw the entrepreneur participate in several pro-Trump rallies across Pennsylvania.
Dan Ives , an analyst at Wedbush Securities , wrote earlier this year that a second Trump presidency would be «bad news for the EV sector overall,» though the financial services firm also called it «hugely positive for Tesla» because the company has unmatched scale and reach in the sector.
Trump’s plan to slap tariffs on Chinese imports would also deter Tesla competitors BYD and NIO from “flooding into the U.S. market in the coming years,” the analyst said. At the time, Ives singled out BYD as superior to Tesla, as “the largest electric car maker in the world.”
Musk was one of Trump’s most prominent supporters during his election campaign. The Tesla CEO poured at least $118 million into his America PAC to help the Republican candidate, making him Trump’s second-biggest backer behind Timothy Mellon.
Musk’s America PAC also gave $1 million to swing-state voters through a donation that was briefly halted by a Philadelphia court. In September, Trump said he would create a «Government Efficiency Commission» first proposed by Musk, who indicated he could lead the body.
During the election cycle, Musk appeared alongside Trump at multiple events and showed his support on social media. Trump, for his part, declared himself a «big fan» of electric vehicles, although in an interview in March he said that «they cost too much» and that they would all be «made in China.»
Elon Musk’s fortune
Tesla’s CEO is the richest person in the world, with a fortune valued at $280.3 billion , after his stake (about 13% of Tesla’s outstanding shares) grew by $15 billion , according to the latest estimates from Forbes .
