Tesla’s (TSLA) stock saw a significant surge on Friday, marking a milestone as it reached its highest close in over two years. This surge comes amid growing optimism surrounding CEO Elon Musk’s relationship with President Trump, propelling Tesla’s market cap to over $1 trillion. This remarkable achievement puts Tesla in the league of only a few other major tech giants like Nvidia, Apple, Microsoft, Amazon, Alphabet, and Meta.
Although the overall stock market has been reaching record highs, Tesla’s performance has been particularly outstanding, with a staggering 29% increase in just five days. The company’s stock price rose by 8.2% on Friday alone, hitting $321.22 and reaching a peak of $328.70. This achievement signifies a significant milestone for Tesla and its investors.
Tesla’s recent success can be attributed to a combination of factors, including better Q3 earnings and deliveries, as well as the anticipation surrounding the company’s upcoming robotaxi Cybercab testing. Additionally, Elon Musk’s ties to President Trump have sparked optimism among investors, leading to a surge in Tesla’s stock price.
Despite initial concerns about potential challenges stemming from the Trump administration’s policies, such as rolling back EV tax credits, Tesla investors are optimistic about the company’s future growth prospects. The scale and scope of Tesla’s operations give it a competitive edge in the EV industry, especially in a non-subsidy environment, as highlighted by Wedbush’s Dan Ives.
Looking ahead, analysts predict that a Trump win could further boost Tesla’s stock price by $40-$50 per share, potentially pushing the company’s market cap beyond $1 trillion if the development of autonomous driving technologies accelerates in the coming years. Beyond financial gains, Musk’s support of Trump’s candidacy could also potentially lead to opportunities for Tesla within the government, further solidifying investors’ confidence in the company’s future prospects.
In conclusion, Tesla’s recent surge in stock price, fueled by optimism surrounding Elon Musk’s relationship with President Trump, showcases the company’s strong position in the EV industry. As investors look beyond current challenges and focus on Tesla’s growth potential, the company remains a key player in the ever-evolving landscape of technology and innovation.