Tesla hits $1tr value on Musk-backed Trump win

Tesla's value topped $1 trillion on rally expectations that Musk’s companies will gain favor after Trump's win.

BENGALURU:

Tesla's market value closed above the $1 trillion mark in a sharp rally on Friday, on expectations that CEO Elon Musk's companies will get favourable treatment under President-elect Donald Trump for his extensive support during the poll campaign.

The electric automaker's shares jumped 8.2% to $321.22, catapulting the company's valuation above the trillion-dollar mark for the first time in more than two years. The stock gained 29% this week, adding more than $230 billion in market capitalisation, its best since January 2023. "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," said Garrett Nelson, senior equity analyst at CFRA Research.

The billionaire could push for favourable regulation of autonomous vehicles that Tesla plans and also get the US National Highway Traffic Safety Administration to hold off on potential enforcement actions involving the safety of Tesla's current driver-assistance systems, a source said.