Tesla’s value reached $1,010 billion as shares increased sharply thanks to expectations that Elon Musk’s companies will benefit under Donald Trump.
Closing the trading session on Friday (November 8), Tesla shares increased 8.19% to 321.22 USD, pushing the company’s valuation beyond the 1,000 billion USD threshold for the first time in more than two years. Last week, the world’s richest man’s electric car company shares increased by 29%, increasing the company’s market value by $230 billion, the highest since January 2023.
Thus, Tesla is ranked 7th in the club of 8 companies with trillion USD capitalization, as of the end of this week’s trading session. Leading the above club are Nvidia (3,620 billion USD), Apple (3,430 billion USD) and Microsoft (3,140 billion USD).
Tesla stock price developments. Source: Reuters
Elon Musk’s personal wealth increased by 24 billion USD in three days November 6-9, when the market received information that Donald Trump won the election. He owns 314 billion USD, an increase of 37% over the same period in 2023, according to Bloomberg Billionaires Index.
Garrett Nelson, senior equity analyst at CFRA Research, believes that Tesla and CEO Elon Musk are the top beneficiaries of the presidential election results. “We believe Trump’s victory will help speed up the regulatory approval process for the company’s automated driving technology,” he said.
Elon Musk has abandoned his plan to build a popular electric car priced under $30,000 and focus on self-driving cars. However, development and regulatory barriers have delayed the commercialization of this technology.
According to sources of ReutersMusk can push for more favorable regulations for self-driving cars that Tesla is developing and lobby the US National Highway Traffic Safety Administration (NHTSA) to postpone enforcement measures related to Tesla’s current driver assistance system.
David Whiston, equity strategist at Morningstar, said that if Musk can convince Trump to issue federal self-driving car regulations, it would be good for the auto industry. “Companies want a common set of rules instead of each state making its own,” he said.
P/E of some large capitalization companies in the US. Source: Reuters
Tesla shares have soared since late October, after the company reported rising quarterly profit margins and forecast a 20% to 30% increase in deliveries next year. This is also the most valuable automobile manufacturer in the world for many years, followed by Toyota Motor (Japan), BYD (China) and other companies.
Currently, the American electric car company’s shares are trading with a P/E (market price-to-earnings-per-share index) of up to 93.47, compared to 38.57 times for AI chip giant Nvidia, 30.77 times. of Microsoft and 6.29 times of Ford.