Tesla’s market value surged past the $1 trillion mark on Friday as the electric automaker’s shares spiked over 8%, driven by investor expectations that Elon Musk’s support of President-elect Donald Trump will translate into favorable regulatory conditions.
Tesla’s stock saw a 29% rise this week, its best performance since early 2023, closing at $321.22.
With Musk’s influence, experts anticipate reduced regulatory roadblocks for Tesla’s autonomous driving technology. According to Garrett Nelson, CFRA Research’s senior equity analyst, “Trump’s win could expedite regulatory approvals for Tesla’s autonomous tech.”
Tesla has been focusing on self-driving vehicles, prioritizing them over an economy model initially set to price below $30,000.
Additionally, Musk’s backing may help secure uniform federal standards for self-driving cars—a shift welcomed by industry analysts like Morningstar’s David Whiston, who argues it would benefit manufacturers by avoiding a patchwork of state regulations.
Tesla continues to lead the automotive market, with strong earnings and forecasts for 20-30% delivery growth next year.
