Galvanized by the news of Trump's electoral success, Tesla's stock price ascended by nearly 15%, reaching a peak unseen since July 2023. This upsurge not only significantly augmented Tesla's market valuation, culminating in a total market capitalization of $920 billion at the closing bell, but also catalyzed Elon Musk's wealth to skyrocket by over $20.9 billion within a single day.

Tesla's Escalation in Stock Value

At the conclusion of trading on Wednesday in the Eastern time zone, propelled by Trump's triumph in the U.S. presidential election, Tesla's (TSLA.US) stock price surged by approximately 14.75% to $288.53 per share, establishing a fresh zenith since July 2023 and a total market capitalization of $920.179 billion. This surge not only bolstered Tesla's market worth but also instigated a substantial rise of over $20.9 billion in wealth for Tesla's CEO, Elon Musk, further cementing his status as the wealthiest individual globally, with a net worth nearing $286 billion. The surge in Tesla's stock price is intimately intertwined with Trump's victory. Throughout the campaign, Musk contributed over $130 million to Trump's campaign endeavors and consistently championed the Republican Party and Trump on social media platforms.

（Source: uSMART HK）

Market Reaction

Trump's triumph incited a surge in "Trump trading," with U.S. stocks attaining historic peaks, the U.S. dollar surging, and precious metals plummeting. The three principal U.S. stock indices experienced notable upswings, with Tesla surging by almost 15%. Moreover, Trump Media & Technology Group rose by 34.8% before retracing most gains. Additionally, sectors such as banking, energy, and Bitcoin exhibited an upward trajectory.

Long-term Prospects for Tesla

Although Tesla may reap benefits from Trump's policies, certain analysts posit that Trump's election could have adverse ramifications for the entire electric vehicle industry. Trump has publicly contended that electric vehicles are being foisted upon consumers; if he follows through on pledges to rescind tax incentives and manufacturer tax policies, it could potentially deal a substantial blow to the entire electric vehicle sector. Nevertheless, given Tesla's substantial scale and market position, the repercussions of these policy alterations on the company may be relatively contained. Trump's imposition of high tariff policies and advocacy for traditional fuel vehicles appear to be primarily directed towards foreign automotive brands and the proliferation of electric vehicles.

Trump's victory has engendered a notably positive impact on Tesla and its stock price. Investors posit that the Trump administration will yield further policy dividends for Tesla, propelling its stock price upwards. Consequently, Tesla, as an electric vehicle manufacturer overseen by Musk, is perceived by investors as the paramount beneficiary subsequent to Trump's triumph.

How to Invest Using uSMART

After logging into the uSMART HK app, click on the "Search" option located at the top right of the page. Enter the stock code, such as " TSLA " to access the details page where you can review transaction details and historical trends. Then, click on the "Trade" option at the bottom right corner, select the "Buy/Sell" function, and finally fill in your transaction conditions before submitting your order.