Tesla Surpasses $1 Trillion Market Cap Following Trump Election Win

Tesla’s stock surged over 10% in Friday afternoon trading, propelling the electric vehicle giant’s market capitalization past the $1 trillion mark. This significant gain followed a week where Tesla shares jumped by approximately 27%, spurred by Donald Trump’s victory in the U.S. presidential election and investor optimism about how his administration might benefit Tesla. CEO Elon Musk has been a prominent Trump supporter, contributing at least $130 million to pro-Trump campaign efforts.

Tesla’s market capitalization stood at $807.1 billion at Tuesday’s close before this week’s rally. With the latest surge, the company’s stock has increased about 29% for the year. Tesla now rejoins a select group of tech powerhouses worth over $1 trillion, including Nvidia, Apple, Microsoft, Alphabet, Amazon, and Meta, with most of these companies exceeding $2 trillion in value. Tesla initially crossed the $1 trillion threshold in October 2021.

Wedbush Securities analyst Dan Ives noted that Trump’s potential administration could reduce regulatory pressures on Tesla and other firms. “Tesla has the scale and scope that is unmatched in the EV industry,” Ives wrote in a client note, suggesting that a shift away from EV subsidies combined with increased tariffs on Chinese EV competitors like BYD and Nio could give Tesla a stronger foothold in the U.S. market.