Tesla rallied for two consecutive days due to positive news related to Trump.
On Thursday, Tesla closed at $296.91 on the New York Stock Exchange, up 2.90% from the previous trading day. As a result, its market capitalization reached $953 billion, edging closer to the $1 trillion mark.
The previous day, Tesla shares had already skyrocketed 14.75% to close at $288.53.
This rally is attributed to Elon Musk’s strong support for Trump’s election. Musk actively supported Trump by attending rallies, delivering speeches, and other means.
In addition to his public support, Musk also made a significant financial contribution to the Trump campaign, donating over $130 million.
This has raised expectations that the Trump administration may expedite regulatory approval for Tesla’s autonomous driving technology.
Many analysts also believe that the removal of electric vehicle incentives could be beneficial for Tesla.
Dan Ives, an analyst at Wedbush and a Tesla fan, noted that while Trump might scrap current EV incentives, which could hurt the broader electric vehicle sector, it could actually benefit Tesla.
This outlook suggests that, as Tesla has already secured a dominant competitive edge, removing EV incentives could harm other companies and further solidify Tesla’s leading position in the market.
Due to these favorable factors, Tesla appears to have rallied for two consecutive days.