Tesla reached a market capitalization of more than a trillion dollars (one trillion euros) for the first time in its history after the victory of Donald Trump in the presidential elections last Tuesday. With an increase in the American Nasdaq of more than 6%, the electric car manufacturer places its share price at around $312 (around 290.35 euros per share).
With investors positioned in favor of the Republican’s future economic policies, the market is confident in the influence that the founder of the automaker can acquire, Elon Muskin the next North American administration, as there is speculation that his role will be important in a new Trump administration.
In fact, the tycoon promised the South African-born businessman during the election campaign to be the new “cost reduction secretary”which would give him the power to reduce the weight of civil servants in the country’s public administration.
During the last months of the electoral campaign, according to the archives of the Republican Party, the electric car entrepreneur came to inject $130 million (121.15 million euros) in meetings, advertisements and speeches by Donald Trump and his vice-presidential candidate JD Vance. He also set the wheels in motion for his field’s social network, X, with countless messages of support for the New York mogul.
In response, Trump proposed import duties of 10% on all foreign-made products and up to 100% on all imported vehicles during the election campaign. A possible firm decision which would initially benefit American manufacturers like Teslabut also to others linked to combustion such as Ford or General Motors.
And investors are confident that the future of Musk – and his companies – will be golden in the next term. In his victory speech, the Republican clearly expressed his view of the South African-born businessman. “We have a new star, a star is born, Elon (…) is an incredible guy,” he said.
However, while Tesla is clearly experiencing a surge in the electric vehicle sector, which could provide a clear competitive advantage for the company in a future without subsidies for battery cars, the rest of the manufacturers are now expecting an increase of their poor performance since January 20. In 2025, Trump will be inaugurated again on the steps of the Capitol in Washington.
Several analysis houses consulted by Europe Press They believe that Trump’s victory will be an elixir for Tesla. Wedbush estimates that the securities could add up to $50 to the price per share if, in addition, the “Full Self Driving” autonomous driving system was actually implemented starting in 2025.
However, for Tesla, even if Trump’s arrival in the Oval Office is positive “a priori”, the fact that the Republicans managed to take control of the US Senate, until now in the hands of the Democrats, is not so positive. after obtaining a majority of 51 seats out of 100. Chamber of Deputiess, the recount also offers a clear victory to the Republicans while awaiting the proclamation of the final result.
And Musk is confronting right-wing leadership in the country’s Congress, repealing several provisions related to electric vehicles and the elimination of polluting emissions and fuel economy requirements. fuel consumptionwhich could limit Tesla’s revenues generated by the sale of environmental credits to manufacturers struggling to comply with the Democratic administration’s regulations.
However, Musk downplayed the threat of a reduction in government incentives for electric vehicles, while highlighting the possibility for companies to benefit from the deregulation.
During Tesla’s quarterly earnings presentation a few weeks ago, Musk even called for accelerated approval of autonomous vehicle technology and admitted that “I’ll try to get it.” if, ultimately, Trump chooses him to occupy a position in his new administration.
