Topline
Tesla stock roared again Monday, extending its robust post-election gains after its leader Elon Musk hitched his wagon to President-elect Donald Trump’s efforts to secure a second presidential term, simultaneously making Musk a much richer man as one analyst hinted at the prospect of Musk’s close relationship with Trump resulting in friendlier policy.
Key Facts
Shares of Tesla jumped another 7% to $345 by 12:15 p.m. EST, hitting its highest share price since April 2022.
The stock is now up 37% since last Tuesday, as Wall Street flooded into Tesla after Trump won the election.
Musk, Tesla’s largest shareholder, has unsurprisingly benefitted the most from the explosive gains.
Already the world’s richest person prior to the election, Musk’s net worth is up about $52 billion since last Tuesday to $318 billion, according to Forbes’ calculations.
After his $14 billion boost Monday, Musk is now more than $80 billion wealthier than the planet’s next richest person, a gap higher than the total wealth of the world’s wealthiest woman, L’Oréal heiress Francoise Bettencourt Meyers.
Tangent
Accompanying Monday’s rally was a bullish note from Wedbush analyst Dan Ives, one of the most outspoken voices on Tesla, upping his firm’s price target for Tesla to $400, indicating nearly 20% further upside. Ives, who has previously noted how policies like looser regulation under Trump would help Tesla’s burgeoning autonomous driving initiatives, offered further reason for Tesla optimism, predicting Musk will be “heavily involved” in discussions about U.S. tariffs on Chinese goods. Ives said he anticipates “some carve outs” for Tesla in any retaliatory trade policies from the Chinese government, which would help Tesla navigate its “key” China market (the country makes up a third of Tesla sales). And in news potentially quelling fears Musk would need to formally take a step back from Tesla due to his newfound political influence, the Financial Times reported Monday that Musk will not take a role in the Trump administration that would require him to adjust his positions in the private sector.
Big Number
$300 billion. That’s roughly how much market value Tesla has added since Election Day. That’s the equivalent of the entire combined market capitalization of Toyota, the next most valuable car company in the world, and General Motors, the next most valuable American automaker.
Key Background
Tesla stock is the face of the post-election rally for a host of asset classes as investors reacted to what’s largely seen as a more favorable federal government for corporations. Stock indexes like the S&P 500 are trading at record highs, while other areas seen as closely aligned to Trump, like bitcoin and Tesla stock, have gained sharply in recent days. Since endorsing Trump in July, Musk became tightly linked to Trump personally and politically. Musk joined Trump’s post-election call with Ukrainian President Volodymyr Zelensky last week and Trump’s granddaughter said in a Sunday social media post Musk is approaching “uncle status.”
Crucial Quote
“Musk made a strategic and big bet on a Trump White House win that will be known as a ‘bet for the ages’ for TSLA bulls,” Ives wrote Monday.
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