Tesla Stock Price Soar After Trump Wins The US Election

The aftermath of the US election is still looming. This time, the stock market is responding to Trump’s second presidential term, with Tesla leading the top-performing list after exceeding the $300 mark for the first time in over two years.

The close connection between Elon Musk and the republican candidate plays a major role in this stock growth, as Musk was one of the biggest donors for Trump’s campaign.

Now, the anticipated administration and policies are the main drivers of Tesla’s stock price soaring. Let’s discuss what’s happening.

Tesla Stock Price Performance

Over the last three months, TSLA shares have been roaming in the $220-$240 area, with earnings reported to be less than estimated. 

However, Tesla’s stock price grew significantly in the first week of November, jumping from $242 to $320. This marked the first entry into the $300 zone since September 2022.

The price peaked on the second week at $350 for the first time since April 2022, marking an all-time high price in 2024.

Despite falling below the $350 level, as of writing, stocks recorded 28.5% growth from the beginning of the month and a 7.7% growth compared to the last week.

Why is Tesla Stock Going Up?

The rising role of Elon Musk in the US administration is pivotal in the high speculations around Tesla. Also, the president-elect’s approach to self-driven vehicles is highly promising for Tesla, suggesting an increased production and more sales to be expected.

Is Tesla a Good Stock to Buy?

As the focus on auto-driving cars and taxis rises, Tesla’s Robotaxi service is expected to experience massive growth. Therefore, investing in TSLA can bring long-term returns after new policies come into force, and CEO Musk’s role will thrive in the upcoming US administration.

Future Outlook: Trump’s Policy and Tesla’s Shares

After winning the elections, Donald Trump will establish an advisory commission called the Department of Government Efficiency (DOGE) to reduce waste and unnecessary spending. Vivek Ramaswamy, a Republican billionaire and businessman, and Elon Musk are expected to lead the committee, as well as Uber’s ex-executive and other Republican representatives.

DOGE is expected to push for more auto-driving vehicles, including private cars and public taxis, which can significantly shift the production and sales of Tesla manufacturing. The current policies restrict pedal-free autonomous vehicles, which inhibit the potential for more TLSA share.

Moreover, SpaceX is the second-largest donor for Trump, contributing over $118 million in the US election and driving a massive interest in space missions, technologies, and investments. This can lobby for better tax policies, space tech trade agreements, and streamlined launches.

Conclusion

The role Elon Musk played in the US presidential election contributed massively to the Tesla stock price prediction this week. TSLA shares rose more than 7% in the last week, reaching new levels after two years.

However, this growth is expected to continue in the coming years, with more policies introduced in favor of self-driven cars and technologies, potentially taking Tesla’s stock price to new records.