Elon Musk on stage before Republican presidential nominee former President Donald Trump speaks at a rally at Madison Square Garden in New York, NY on Sunday, October 27, 2024.
The Washington Post | The Washington Post | Getty Images
Shares of Tesla climbed more than 5% in mid-morning trading Friday, pushing the electric vehicle maker’s market cap past $1 trillion for the first time.
The company’s stock has rallied about 27% this week after President-elect Donald Trump won the U.S. presidential election and investors have grown optimistic that the former president’s return to the White House could benefit Tesla. Tesla CEO Elon Musk has been a key ally for Trump throughout his campaign, pouring at least $130 million into a pro-Trump campaign effort.
Tesla had a market cap of $807.1 billion through Tuesday’s close. Prior to this week’s rally, shares of the carmaker were up about 1% for the year. Tesla’s stock is now up about 26% year to date.
Tesla joins a growing club of tech names that are now worth more than $1 trillion, including Nvidia, Apple, Microsoft, Alphabet, Amazon and Meta (though all but Meta are worth more than $2 trillion).
Wedbush Securities analyst Dan Ives has said that a potential Trump administration could spell less regulation for Tesla and other companies. Trump has said previously he may cut the federal $7,500 electric vehicle tax credit.
“Tesla has the scale and scope that is unmatched in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players (BYD, Nio, etc.) from flooding the U.S. market over the coming years,” Ives wrote in a note to clients this week.
In its most recent earnings update, Tesla reported revenue of $25.18 billion and net income of $.217 billion in the third quarter.
— CNBC’s Lora Kolodny contributed to this report.