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On Friday the market capitalization was Tesla Inc. (NASDAQ:TSLA) soared past the $1 trillion mark, a rise attributed to its CEO Elon Musk’s betting on the president-elect Donald Trump.
What happenedFollowing Trump’s victory and his comeback as the 47th US president, Tesla shares staged a sharp rally, pushing Musk’s fortune past the $300 billion mark.
During an appearance on Yahoo Finance, analyst Wedbush Then Ives praised Musk’s support of Trump as a “poker move for the ages.” He expects an accelerated autonomous sector, which could be worth $1 trillion for Tesla’s AI segment alone.
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In a separate message, Gen Munstermanaging partner Deepwater asset managementrecorded Tesla’s impressive 44% rally over the past 12 trading days. “This is more than just a meme stock,” he wrote on X, formerly Twitter.
Munster believes that Tesla’s accelerating delivery growth and the long-term opportunities around autonomy will strengthen the fundamentals that will drive further price increases. “
Why it mattersTesla’s share price rose nearly 29% this week following Trump’s victory in the US presidential election, as investors grow hopeful that the newly elected president’s return to the White House could benefit the automaker.
The Tesla CEO was a key political supporter of Trump’s 2024 campaign and reportedly donated more than $130 million to support his re-election.
Trump’s victory speech also praised Musk, spending nearly four minutes calling him a “super genius” and highlighting achievements including SpaceX launches and the growing satellite internet network.
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Musk has also expressed interest in leading a proposed Department of Government Efficiency (DOGE) to reduce federal waste. Trump has nominated Musk for the role of “secretary of cost savings,” overseeing efforts to cut federal spending by $2 trillion.
Last month, Tesla reported third-quarter revenue of $25.18 billion, reflecting an 8% increase year over year. However, this figure fell short of the Street consensus estimate of $25.37 billion, according to data from Benzinga Pro.
Price promotion: Tesla shares ended Friday’s session with a gain of 8.19% to close at $321.22. The stock rose further in after-hours trading to $322.80, according to data from Benzinga Pro.
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Photo courtesy: Tesla
This article As Tesla’s Market Cap Surges Past $1 Trillion, Dan Ives Calls Musk’s Trump Bet ‘Poker Move For The Ages: Gene Munster Say It Is ‘More Than Just A Meme Stock’ originally appeared on Benzinga.com
