Elon Musk is now $50 billion wealthier since the election, with Tesla stock rising another 7%
TOP LINE
Tesla stock surged again on Monday, continuing its strong gains since the election. This happened after Elon Musk, Tesla’s CEO, showed support for President-elect Donald Trump’s bid for a second term. Musk’s support for Trump not only made him wealthier but also led one analyst to suggest that Musk’s ties with Trump might lead to policies that benefit Tesla.
KEY FACTS
- Tesla shares rose another 7% by 10 a.m. EST, reaching $350 per share for the first time since April 2022.
- Tesla stock has now risen 37% since last Tuesday, as Wall Street investors rushed to buy Tesla shares after Trump won the election.
- As Tesla’s largest shareholder, Musk has benefitted the most from these major gains.
- Already the world’s richest person before the election, Musk’s net worth has grown by about $51 billion since last Tuesday, reaching $316 billion, according to The Worlds Times.
- With a $12 billion increase on Monday alone, Musk is now over $80 billion richer than the world’s second-richest person—a gap larger than the entire wealth of Francoise Bettencourt Meyers, the world’s richest woman and L’Oréal heiress.
TANGENT
Monday’s rally in Tesla shares was supported by a positive note from Wedbush analyst Dan Ives, who raised his firm’s price target for Tesla to $400, suggesting nearly 20% more growth potential. Ives, a well-known Tesla supporter, highlighted that policies like relaxed regulations under Trump could benefit Tesla’s growth in autonomous driving. He also expects Musk to be “heavily involved” in discussions on U.S. tariffs on Chinese goods, predicting “carve outs” for Tesla in any Chinese trade retaliation. This would be beneficial as China represents a key market, making up a third of Tesla’s sales. Additionally, the Financial Times reported that Musk will not take any formal role in the Trump administration that would require him to step back from his role at Tesla, potentially easing concerns about his political involvement affecting his leadership.
BIG NUMBER
Tesla has added about $300 billion in market value since Election Day. This is roughly equal to the combined market value of Toyota, the second most valuable car company in the world, and General Motors, the second most valuable American automaker.
Key Background
Tesla stock has become the symbol of the post-election rally, as investors reacted to what is largely seen as a more business-friendly federal government. Stock indexes like the S&P 500 are hitting record highs, and other assets linked to Trump, like bitcoin and Tesla, have seen sharp gains recently. Since endorsing Trump in July, Musk has become closely connected to him both personally and politically. Musk even joined Trump’s post-election call with Ukrainian President Volodymyr Zelensky last week, and Trump’s granddaughter mentioned on social media that Musk is nearing “uncle status.”
Crucial Quote
“Musk made a strategic and significant bet on a Trump White House win, which will be remembered as a ‘bet for the ages’ for Tesla supporters,” Ives wrote on Monday.
Published: 11th November 2024
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