Tesla shares surged following the news that Donald Trump was elected President of the United States, giving Elon Musk an additional $26.5 billion in a single day.
By the close of trading on November 6, Tesla's stock had risen 14.7%, marking its highest point since July 2022. This jump made Musk the world's top gainer for the day, pushing his net worth to $290 billion and cementing his position as the world’s richest person.
Tesla shares spiked on news of Trump’s re-election, as the electric vehicle company is expected to benefit from the outcome, while competitors face an uncertain future. Musk was a notable supporter of Trump’s campaign this year, contributing over $130 million to the super PAC America PAC, making it a significant factor in Trump's bid to retake the White House. In the final weeks leading up to the election, Musk gained attention by partnering with America PAC to offer $1 million in rewards to swing-state voters.
Billionaire Elon Musk (right) stands next to Republican candidate Donald Trump at an event in Butler, Pennsylvania on October 5
Musk also campaigned actively on X to rally support for Trump. In return, the President-elect has promised to appoint Musk as the head of the Department of Government Efficiency (DOGE).
Despite his criticism of electric vehicles during the campaign, Trump softened his tone somewhat following Musk’s endorsement. Trump praised the world’s richest person for four minutes, commending Musk’s aerospace company SpaceX and calling Musk a “special person” and a “super genius.”
“Tesla and Musk stand to benefit significantly from Trump’s victory,” Daniel Ives, an analyst at Wedbush Securities, said in an interview with Bloomberg. Tesla could gain an edge over competitors if the U.S. reduces tax incentives for electric vehicles.
Late last month, Tesla reported third-quarter earnings of $2.5 billion, an 8% increase from the previous year, exceeding analyst expectations.
While Tesla’s shares soared yesterday, other electric vehicle manufacturers struggled, with Rivian Automotive falling 10% and Lucid Group dropping 8%. European automakers' stocks were also sold off amid fears that Trump would raise tariffs on imported cars.