Tesla Shares Soar 14%: Trump Win Sets Stage for Elon Musk's Electric Vehicle Company

Tesla shares surged 14% on Wednesday, November 6, 2024, following the news of Donald Trump's second term as president. The electric vehicle (EV) maker's stock price jumped after investors anticipated that Trump's win could be a "huge positive" for Tesla, according to Wedbush analyst Dan Ives. This article explores the recent market performance of Tesla and the potential implications of Trump's win for the company's future.

Tesla's stock price has been volatile in recent months, with shares tumbling amid disappointing delivery numbers and financial results. However, the stock started to rebound last week as investors and analysts focused on Elon Musk's comments in the company's first-quarter earnings call, including plans to focus on a more affordable model and autonomous taxis. The recent surge in Tesla's stock price can be attributed to the optimism surrounding the company's growth prospects and the potential benefits of a Trump presidency.


The Trump administration's stance on EV subsidies and tax incentives could significantly impact Tesla's competitive position. Wedbush analyst Dan Ives believes that a Trump presidency could lead to the removal of EV rebates and tax incentives, benefiting Tesla due to its scale and scope in the EV industry. This could push away cheaper Chinese EV players from the U.S. market, giving Tesla a competitive advantage. However, this also raises concerns about Tesla's high valuation and growth potential, as the removal of subsidies could make its vehicles less affordable for consumers.

Trump's trade policies, particularly higher Chinese tariffs, could also influence Tesla's global operations and supply chain. Wedbush analyst Dan Ives believes these tariffs could push away cheaper Chinese EV players from the U.S. market, giving Tesla a competitive advantage. However, higher tariffs could also increase production costs for Tesla, which might affect its pricing strategy and profitability. Additionally, Trump's potential rollback of EV rebates and tax incentives could negatively impact the overall EV industry, including Tesla.


The Trump administration's regulatory environment could potentially accelerate Tesla's autonomous vehicle (AV) and energy storage initiatives. Dan Ives, Wedbush analyst, believes that a Trump presidency could expedite regulatory clearance for AV technologies, adding $40-$50 per share to Tesla's stock. However, Trump's stance on climate change and EV subsidies could negatively impact the broader EV industry, potentially benefiting Tesla due to its scale and scope. In energy storage, Tesla's record 9.4 GWh deployment in Q2 2024 (up 127% YoY) indicates strong demand, which could be further boosted by a favorable regulatory environment under Trump.

In conclusion, the recent surge in Tesla's stock price is driven by optimism surrounding the company's growth prospects and the potential benefits of a Trump presidency. However, investors should remain cautious due to potential profit-taking and challenges in justifying Tesla's high valuation. The Trump administration's stance on EV subsidies, trade policies, and regulatory environment could significantly impact Tesla's competitive position, global operations, and growth prospects. As an experienced English essay writing consultant, I urge investors to exercise due diligence and maintain a critical and analytical perspective when assessing Tesla's market performance and potential.