Topline
Tesla’s market value eclipsed $1 trillion Friday for the first time since early 2022, as the electric vehicle maker led by the world’s richest man Elon Musk enjoys a massive rally after the Musk-backed Donald Trump secured a second presidential term.
Shares of the Musk-led Tesla are up 24% since Tuesday.
Key Facts
Shares of Tesla jumped more than 10% to nearly $330 in afternoon trading before closing with a still-robust 8% gain at $321, extending its three-day rally to 28%, captaining the broader stock market gains following Trump’s election.
That pushed Tesla’s market value to over $1 trillion for the first time since April 2022, according to YCharts data, with the automaker’s valuation nearly doubling over the last six months.
Forbes Valuation
Musk’s net worth topped $300 billion Friday for the first time in more than two years. The 53-year-old got about $13 billion richer Friday during the Tesla stock rally, and he’s $70 billion wealthier than the next closest competitor, Larry Ellison, Oracle chairman and Musk’s “very close friend.”
Key Background
Musk is Tesla’s largest shareholder with a 13% stake worth about $130 billion, with a further 9% stake in the company pending an appeal in Delaware court over the 9% bonus in stock options (Forbes discounts the 9% bonus by 50% in its valuation of Musk). Shares of Tesla remain about 25% below their split-adjusted peak of $415 set in late 2021, when Musk’s net worth peaked at roughly $320 billion. Musk endorsed Trump in July, donated about $130 million toward his election efforts and became a frequent figure on the campaign trail, appearing in a photo at Trump’s victory celebration alongside the former president’s family. Musk and Trump have publicly discussed a role for the Tesla chief in the Trump administration, which the president-elect has described as the “secretary of cost-cutting.”
Why Is Tesla Stock Up So Much?
Stocks are up across the board this week, with the S&P 500 on track for easily its best week this year and fellow American car companies Ford and General Motors up 7% and 8%, respectively. As for Tesla specifically, Wedbush analyst Dan Ives outlined several ways in which a Trump presidency could benefit the company in a recent note to clients. Those include the potential elimination of electric vehicle federal tax credits, which would give Tesla a “clear competitive advantage” as smaller competitors struggle to gain footing, Trump-backed tariffs on Chinese imports which “would continue to push away cheaper Chinese EV players” and the potential for Trump to “fast track” regulatory approval of Tesla’s self-driving vehicle initiatives, according to Ives.