Elon Musk’s support for Donald Trump in the 2024 presidential election has paid off, with Trump winning the presidency and Tesla’s stock surging nearly 15% on the news. Musk donated over $132 million to support Trump and the Republican Party, making him one of the largest individual donors in the election. Trump praised Musk in his victory speech, calling him a “super genius” and promising to protect him.
However, their relationship has not always been smooth, with Trump previously criticizing Musk on social media and Musk responding with his own criticisms. Despite this, Musk endorsed Trump following an assassination attempt on the former president in July. Tesla investors are closely watching how Musk’s relationship with Trump will impact the company.
Trump has previously been critical of electric vehicles, promising to reverse Biden’s EV policies and potentially end the $7,500 EV tax credit.
Tesla’s stock rises after election
However, he softened his stance in August, stating his support for electric cars due to Musk’s endorsement.
Analysts believe that a Trump administration could benefit Tesla by reassessing emissions requirements and EV tax credits, giving the company a competitive edge over cheaper Chinese EV competitors. Dan Ives of Wedbush noted that “Tesla has the scale and scope that is unmatched in the EV industry” and suggested that a Trump win could add $40-$50 per share to Tesla’s stock. Tesla’s autonomous driving ambitions could also be expedited under a Trump administration.
Garrett Nelson of CFRA upgraded Tesla’s stock to Buy and increased his price target, believing that having an ally in the White House could help advance Tesla’s self-driving technology. Tesla plans to continue robotaxi testing in 2025, with potential rollouts as early as 2026. Ultimately, Tesla’s future under a Trump administration may depend on the development of these emerging technologies and the support of favorable policies and regulatory frameworks.
