Tesla’s Market Value Soars Past $1 Trillion Amid Musk’s Support for Trump and Autonomous Tech Push
The relationship between President-elect Donald Trump and Elon Musk has sent Tesla’s market value soaring. Tesla’s stock rallied on Friday, reaching $321.22 per share and boosting the company’s valuation to over $1 trillion for the first time in more than two years.
The surge was driven by Musk’s endorsement of Trump’s White House bid and the prospect of favorable regulations for Tesla’s autonomous vehicle technology under a Trump administration.
Musk, Tesla’s CEO, became a high-profile backer of Trump’s recent campaign, supporting his policies aimed at economic growth and deregulation. Over the past week, Tesla shares rose by 29%, adding over $230 billion in market value.
Garrett Nelson, a senior equity analyst at CFRA Research, commented, “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.”
While Trump has historically criticized subsidies for electric vehicles, he has praised Musk’s innovative work at Tesla, even calling him a “super genius” in his victory speech.
Musk, in turn, may use his influence to seek regulations that support the development of autonomous vehicles, potentially slowing down enforcement on Tesla’s existing driver-assistance systems, according to sources familiar with the matter. Recently, Musk set aside plans for a low-cost Tesla model, refocusing instead on advancing self-driving technology.
However, the development of autonomous driving faces ongoing regulatory and technical hurdles before it can be safely commercialized.
Tesla’s autonomous driving ambitions have not been without controversy. Last month, the National Highway Traffic Safety Administration (NHTSA) opened an investigation into 2.4 million Tesla vehicles equipped with Full Self-Driving (FSD) software after four reported collisions, including one fatal accident.
The probe is examining how FSD software performs in low-visibility situations such as sun glare, fog, or airborne dust. Tesla maintains that its FSD and Autopilot features require an attentive driver who is ready to take control if needed, but recent incidents have put the technology under the legal spotlight.
In addition to Musk’s autonomous tech ambitions, Wall Street analysts anticipate that a Trump administration will pursue policies similar to his first term, including tax cuts and further deregulation.
David Whiston, equity strategist at Morningstar, stated, “If Musk can convince Trump to establish federal autonomous vehicle rules, we think that’s a good thing for the auto industry. Firms want one set of rules rather than each state making their own.”
There are also reports that Musk may play an active role in Trump’s administration by participating in an initiative focused on improving government efficiency and reducing wasteful federal spending.
This potential collaboration highlights Musk’s interest in policy changes that could shape the future of autonomous driving and further solidify Tesla’s position in the EV market.
With Musk’s influence and a Trump-led regulatory landscape, Tesla’s market value could continue its upward trajectory, positioning the company as a leader in both electric and autonomous vehicle technologies. However, Tesla will still need to navigate complex safety and regulatory challenges if it hopes to make fully autonomous driving a reality in the U.S.