Musk benefits from friendship with Trump. The company’s stock skyrocketed
Tesla shares soared after partial US election results began to show Donald Trump winning.
Tesla’s prices skyrocketed in over-the-counter trading, which is directly related to Donald Trump’s victory in the US presidential election. Investors assume that Elon Musk’s close relationship with the former president may translate into benefits for the electric car manufacturer.
Tesla shares gained as much as 8%. on the Robinhood platform during the night session, which is a clear reflection after six consecutive down sessions. During regular trading on Tuesday, the company’s shares increased by 3.5 percent, CNBC reported.
Elon Musk’s political involvement
The reason for the increase in the value of shares was the disclosure of Musk’s significant involvement in Donald Trump’s election campaign. In October, Musk donated nearly $75 million to America PAC, a political committee founded by the former president to support his candidacy.
Additionally, investors positively received Trump’s declaration, which promised Musk the role of chairman of the government efficiency committee if he wins the election. During a rally at Madison Square Garden, Trump suggested the possibility of reducing federal spending by $2 trillion, which he said would be implemented in cooperation with Musk.
Tesla’s development prospects
The increase in Tesla’s share price is significant, especially since Trump is not perceived as a supporter of green energy, which includes the production of electric vehicles. Since the beginning of the year, Tesla has achieved only 1.2%. growth, which contrasts with the 21.2% increase in the S&P 500 index.
Analysts point out a certain paradox – even though Trump does not support the development of clean technologies, investors speculate that his personal relationship with Musk may translate into business benefits for Tesla. At one of the rallies, Musk announced that as head of the commission he would strive to “reduce government control over entrepreneurs and tax burdens.” The US presidential election strongly affects Tesla’s quotations, as well as currency rates, oil prices and bond yields.
