Tesla shares surged in pre market session on Wednesday as investors bet on a potential Trump election victory benefitting CEO Elon Musk. Tesla stock price closed at $251.44 on Tuesday and is trading around $289.17, a jump of 15% over the previous day’s close. Tesla stock has underperformed the broader market this year, with shares increasing by 1.19% compared to the S&P 500’s 21.24% year-to-date gains.
Tesla shares are expected to be in focus on Wednesday in anticipation of a victory for former President Trump, even though some crucial states in the United States election have yet to post results.
According to AP, Donald Trump has been elected the 47th president of the United States with the former President Donald Trump getting 277 electoral votes and Harris 224 electoral votes.
In the pre-market session on Wednesday, November 6, Tesla jumped 14% as Elon Musk, the CEO of Tesla, has endorsed the former president throughout Trump’s election campaign. If re-elected, Trump has pledged to appoint Musk as chairman of a government efficiency commission.
Tesla stock has underperformed the broader market this year, with shares increasing by 1.19% compared to the S&P 500’s 21.24% year-to-date gains.
Elon Musk donated nearly $75 million to America PAC, a super political action committee established to support the Republican nominee last month. Trump plans to appoint Elon Musk as the head of a government efficiency commission, stating he could cut $2 trillion from the federal budget during his October rally.
Stock price of Trump Media & Technology Group, in which Trump owns a majority stake, soared 30%. Since their all-time lows in late September, Trump Media stock price has nearly tripled in value, bringing the former president’s investment to $5 billion.
Meanwhile, the S&P 500 futures touched an all-time high, while futures for the small-cap Russell 2000 index rose 5.6% on predictions that US-focused companies would profit from business incentives and tariffs that favor domestic production.