Tesla’s stock surged nearly 6% on speculation that the U.S. federal government would order electric armored vehicles from the company for $400 million.
On Thursday, Tesla shares jumped 5.77% to close at $355.94 on the New York Stock Exchange.
The rally followed reports suggesting that the U.S. government was poised to place a $400 million order for electric armored vehicles from Tesla.
However, CEO Elon Musk quickly denied these claims.
Despite Musk’s refutation, Tesla’s stock continued to rise, driven by investor speculation that his close ties to the Trump administration could still lead to lucrative contracts.
While a federal deal remains uncertain, optimism is growing that Tesla could secure major contracts at the state level.
Buoyed by this momentum, Tesla’s market capitalization surged to $1.145 trillion, making the company one of the world’s seven most valuable firms.