NEW YORK (AP) — Tesla stock soared Wednesday as investors bet on the electric car maker and its Tesla profits. CEO Elon Musk It will benefit from Donald Trump’s return to the White House.
Tesla stands to gain significantly under the Trump administration, when subsidies for alternative energy and electric vehicles are cut, potentially hurting smaller competitors the most. President Trump’s plans to impose broad tariffs on Chinese imports make it unlikely that Chinese-made EVs will be sold in large numbers in the U.S. anytime soon.
“Tesla has unparalleled scale and scope,” Wedbush analyst Dan Ives said in a note to investors. “This dynamic gives Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, and China’s tariff hikes could continue to drive out cheaper Chinese EV players. ”
Tesla shares rose 14.8% on Wednesday, while shares of rival electric car makers fell. Shanghai-based Nio fell 5.3%. Electric truck maker Rivian’s stock fell 8.3%, while Lucid Group’s stock fell 5.3%.
Tesla dominates electric vehicle sales in the U.S., with a market share of 48.9% by mid-2024, according to the U.S. Energy Information Administration.
The clean energy subsidies are part of the Anti-Inflation Act signed into law by President Joe Biden in 2022. This includes tax credits for electric vehicle consumers, as well as tax credits for manufacturers.
Musk is one of Trump’s biggest donors, spending at least $119 million to mobilize Trump supporters to support Republican candidates. he also swore give away 1 million dollars every day to voters signing a petition to his political action committee.
It’s been a turbulent year for Tesla in some ways, with sales and profits declining throughout the first half of the year. Third-quarter profits increased 17.3%.
of US begins investigation The company introduced its “fully self-driving” system after reports of crashes in low visibility conditions, including one that resulted in the death of a pedestrian. The study covered approximately 2.4 million Teslas from 2016 to 2024 model years.
And last month, after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, investors sent the company’s stock plummeting, even as other companies were making significant progress in self-driving cars. Tesla hasn’t made much progress.
Tesla began selling software called “Full Self-Driving” nine years ago. But its reliability is questionable.
Following gains over the past two days, the stock is up 16.1% year-to-date.
