US Election: Tesla Shares Soar Over 15% In Premarket Trading As Donald Trump Wins

Despite Trump’s historically lukewarm stance on clean energy, investors are optimistic that potential policies under Trump's presidency could benefit Musk's ventures

Elon Musk has been a vocal supporter of Donald Trump throughout the campaign, even making substantial financial contributions

Source : PTI

Tesla's shares jumped 15 per cent in premarket trading on Wednesday following Republican Donald Trump's victory over Democratic rival Kamala Harris in the US presidential election. Tesla CEO Elon Musk, a vocal supporter of Trump throughout the campaign, has expressed his backing for the president-elect. Trump has also suggested that he may appoint Musk to lead a government efficiency commission if he wins the election.

"It's still highly unclear what would happen to subsidies for EVs, it's likely a more conciliatory policy will be incoming. He's likely to want to keep Elon Musk onside, and if the promised government advisory role comes through, Musk will wield more influence," said Susannah Streeter, who heads money and markets at Hargreaves Landsown, reported TOI.

Elon Musk has been a vocal supporter of Donald Trump throughout the campaign, even making substantial financial contributions. Musk's backing now seems to align with Trump’s promises to prioritise business allies in his administration.

Despite Trump’s historically lukewarm stance on clean energy, investors are optimistic that potential policies under Trump's presidency could benefit Musk's ventures, leading to the surge in Tesla’s stock.

On Tuesday, Tesla shares climbed 3.5 per cent during regular trading, breaking a six-day losing streak. However, despite this recent rebound, Tesla’s stock still lags behind broader market indices in 2024. While the S&P 500 has gained 21.2 per cent year-to-date, Tesla's stock has risen just 1.2 per cent as of Tuesday’s close.

At a campaign rally at Madison Square Garden, Trump unveiled plans to appoint Elon Musk to head a proposed government efficiency commission if he wins the election. Musk joined in, reaffirming Trump’s pledge to slash wasteful government spending and asserting he could help reduce the federal budget by $2 trillion. “We’re going to get the government off your back and out of your pocketbook,” Musk declared to the cheering crowd.