Stocks of US electric car giant Tesla topped $1 trillion in early days after Donald Trump won the presidential election.
The electric car maker’s shares rose about 23 per cent after Trump’s victory, a sharp reversal from a year in which the company’s share price fluctuated in a range. In addition, Trump may impose additional duties on imported goods including electric cars, which is expected to strengthen Tesla’s dominance in the US electric car market. Tesla’s 13-figure valuation puts it on par with Nvidia, Apple, Microsoft, Alphabet, Amazon and Meta. Tesla has reached the $1 trillion mark in 2021.
The new valuation also raises Elon Musk’s net worth to around $300 billion, increasing his net worth as the richest person in the world by more than $30 billion. He also came out in support of Trump in the election, who has made it clear that he intends to appoint the Tesla chief to a position designed to make the government more efficient, leading to cuts in programmes deemed wasteful.
Through his rocket company SpaceX, Musk has been the beneficiary of billions in government contracts over the past decade. While Tesla has fewer direct contracts, it has been embroiled in numerous federal investigations and regulatory actions that could be eased once Trump takes office.
