Tesla’s shares surged over 15% to $289.44 in after-hours trading on Wednesday, before the Wall Street opening bell, as Donald Trump secured a presidential election victory.
In pre-market trading, investors reacted positively to Trump’s win, boosting Wall Street futures as the former president looked set to overcome Vice President Kamala Harris.
Tesla’s CEO, Elon Musk, highlighted his support for Trump by sharing a photo from a Florida election watch party on his social media platform X. During his victory speech, Trump praised Musk as a “genius,” acknowledging his contributions through SpaceX and the deployment of Starlink satellites during Hurricane Helene.
“He’s an amazing guy,” Trump remarked. “He’s a character, he’s a special guy, he’s a super genius.”
Musk’s substantial support for Trump through the America PAC—a political action committee—played a significant role, contributing tens of millions of dollars and distributing $1 million in giveaways in crucial states.
Andrea Tueni, an analyst at Saxobank, noted, “Tesla shares are rising due to Musk’s special ties with Donald Trump.” He added that Trump “owes him a lot,” and investors believe their close relationship “will turn into something positive for Tesla.”
Trump has also expressed intentions to appoint Musk to lead a government efficiency commission aimed at cutting “trillions” in wasteful spending if he returns to the White House.
