Tesla shares climb to record highs as Trump wins election
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Tesla shares climb to record highs as Trump wins election

Kaneb0

Top line

Tesla shares rose 12% on Wednesday morning, sending the company’s stock to a new record while adding $15 billion to Elon Musk’s fortune after Donald Trump was re-elected president, hailing the world’s richest person.

Key facts

Tesla shares rose above $280 at about 10:10 a.m. EST, which would be a new record high for the stock, surpassing a previous high of $273.54 set on Oct. 27.

Trump hailed the Tesla CEO as a “super genius” and a “new star” during his victory speech early Wednesday, after Musk spent weeks campaigning for Trump throughout Pennsylvania ahead of Election Day.

Wedbush Securities analyst Dan Ives wrote earlier this year, a second Trump presidency would be an “overall negative for the electric car industry,” although the financial services firm also saw it as a “huge positive for Tesla” because the company has “the scale and scope that is unmatched” in the industry.

Trump’s plan to impose tariffs on Chinese imports would also deter Tesla’s Chinese rivals BYD — which Ives noted overtook Tesla as the world’s largest electric car maker at the time — and NIO from “flooding the U.S. market in the coming years,” Ives said.

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Forbes valuation

Musk is the richest person in the world with a fortune worth $280.3 billion, after his stake – totaling about 13% of Tesla’s outstanding shares – increased by $15 billion, according to to our latest estimates.

Key background

Musk was among the more prominent supporters of Trump during his election campaign. At least Tesla’s CEO poured 118 million dollars into his America PAC to help support Trump, meaning Musk was Trump’s second biggest backer behind Timothy Mellon. Musk’s America PAC also awarded $1 million to voters in swing states through a giveaway that was short paused by a court in Philadelphia. In September, Trump said he would create a “government efficiency commission” first proposed by Musk, who has indicated he would lead the agency. During the election cycle, Musk appeared alongside Trump at several rallies and supported his campaign on social media. Trump has said he was a “huge fan” of electric vehicles, although at a previous rally he said he didn’t “bother about the electric thing” and claimed in an interview in March that the vehicles “cost too much” and that everything will to “made in China.”

Further reading

ForbesTrump hails “super genius” Elon Musk in victory speech – ahead of likely election winOf Siladitya RayForbesHere’s how a Trump presidency could help Tesla stock despite its tough plans for electric cars, analysts sayOf Derek Saul

Website https://drenews.diycanadavisa.ca

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