Tesla Inc. (NASDAQ:TSLA) shares surged by over 12% in pre-market trading over a likely Donald Trump victory in the U.S. Presidential elections.
What Happened: According to The New York Times, Trump currently has over 95% chance of victory given he already has 267 of the 270 electoral votes needed to win.
Tesla CEO Elon Musk endorsed Trump in July and has been actively campaigning for the former President both offline and online. Musk even campaigned for Trump in the swing state of Pennsylvania in October.
The billionaire CEO also founded a super PAC called America PAC to which he has so far given over $100 million in a bid to support Trump's presidential campaign, cementing him as a key figure in this year's Presidential election.
Trump, meanwhile, has expressed his intent to set up a government efficiency commission led by Musk if elected President. The commission will be tasked with conducting a complete financial and performance audit of the federal government and recommending reforms, Trump said in September.
According to Wedbush analyst Dan Ives, the biggest positive from a Trump win would be for Tesla and Musk.
"We believe a Trump win is a negative for the EV industry as the EV rebates/tax incentives get pulled, however for Tesla a huge positive for scale/price advantage," Ives said on Wednesday. The analyst added that a Trump win could add $40-$50 to Tesla's stock.
The biggest positive from a Trump win would be for Tesla/Musk. We believe a Trump win is a negative for the EV industry as the EV rebates/tax incentives get pulled, however for Tesla a huge positive for scale/price advantage. A Trump win could add $40-$50 to Tesla's stock
— Dan Ives (@DivesTech) November 6, 2024
A Trump administration could also aid Musk's push towards enabling autonomous driving with its full self-driving driver assistance technology, Ives said in a note earlier this week.
Price Action: At the time of writing, the Tesla stock was up by 10.5% on overnight trading on Robinhood. Year-to-date, Tesla shares are up 1.2%, after the stock closed up 3.5% at $251.44 on Tuesday, according to Benzinga Pro data.
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