Tesla shares experienced a significant increase on Wednesday due to the election, which will result in the reelection of Donald Trump to the White House.
CEO Elon Musk has vocalized this outcome in the campaign’s final months.
Tesla’s size presents a substantial opportunity for growth under the Trump administration, as it is anticipated that subsidies for electric vehicles and alternative energy sources will be jeopardized.
Although this would be detrimental to the industry, Tesla share is expected to benefit from it due to its market share.
Rival electric vehicle shares experienced a substantial decline on Wednesday.
JUST IN: Trump's election win fuels momentum for Elon Musk’s EV company as Tesla shares rises by 14% 🚀!#USAElection2024 #Trump #Tesla #ElonMusk #StockMarket pic.twitter.com/G8WROQ3Kuj
— Social Sunwave Insight (@sunwaveinsight) November 6, 2024
At the opening bell, Tesla shares experienced a 14% increase.
Trump has suggested that electric vehicle manufacturers outside the United States, particularly China, be subjected to 10% to 20% tariffs on foreign products.
In a note to investors, Wedbush analyst Dan Ives stated,
“Tesla has an unmatched scale and scope.”
“This dynamic could provide Musk and Tesla with a clear competitive advantage in a non-EV subsidy environment, and higher China tariffs will likely continue to drive away cheaper Chinese EV players.”
Rivian, a competitor in the electric vehicle (EV) industry, experienced an 8% decline in its stock. In comparison, Lucid Group experienced a 4% decline. NIO, which is headquartered in China, experienced a 5.3% decline.