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Tesla Rockets to 3rd on WSB as Stock Soars Amid Political Winds

AInvestThursday, Nov 7, 2024 6:02 am ET
1min read

Tesla has climbed to the third spot in the latest WSB rankings, rising by three positions from the previous day. This move is mirrored in its stock performance, with a significant 14.75% increase, marking a continued rise over the past two days amounting to an 18.81% gain. Tesla's stock price also reached its highest since July 2023 during intraday trading.

The financial markets reacted strongly to the news of former President Trump's victory in the 2024 presidential elections, a candidate reportedly backed by Tesla's CEO Elon Musk. This political development has seemingly bolstered investor confidence in Musk's business empire, resulting in a massive increase in his net worth by approximately $20 billion. A significant portion of this, around $13 billion, is due to the rise in Tesla's share price.

Tesla's market cap experienced an overnight surge of roughly $119 billion, reaching a total valuation of $926.2 billion, propelled by the optimistic outlook from Musk's substantial stake of over 411 million shares in the company. This development underscores Musk's influential role and strategic bets in political and technological spheres, enhancing his position as the world's richest individual according to Forbes' real-time billionaire ranking.

With Trump's election victory, Tesla is poised for potential benefits from policy shifts, particularly in areas like autonomous driving regulations, where Tesla's Full Self-Driving (FSD) Beta V12 stands as a cutting-edge system. As Tesla continues to advance in robotics and its Starlink endeavors through SpaceX, these technological synergies promise new growth frontiers for the company.

The expected regulatory environment under Trump's administration appears to align favorably with Musk’s ambitions for expanding Tesla's technological footprint. The continuation and scaling of innovative projects like the humanoid robot Optimus and the global deployment of Starlink are seen as pivotal to Tesla's growth strategy moving forward.

Market analysts speculate on the vast opportunities for Tesla's supply chain, as it expands its global dominion with likely benefits to existing and potential suppliers alike. The optimistic sentiment surrounding Tesla's future in the evolving political landscape further solidifies its pivotal role in steering the fourth industrial revolution, extending beyond electric vehicles into groundbreaking fields of technology and space exploration.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.