Tesla (TSLA, Financial) shares soared, pushing the electric vehicle manufacturer's market capitalization back toward the $1 trillion mark. Investors are betting that Donald Trump's return to the White House could have a positive impact on Elon Musk's company. At one point, Tesla shares jumped 11% to $328.71, marking an over 32% increase for the year.
The stock needs to close above $311.52 for Tesla's market value to remain above $1 trillion, positioning it again among the seven companies in the S&P 500 with this distinction. Tesla last surpassed this market cap in April 2022.
In 2024, Tesla's stock has experienced a rollercoaster. Initially, by April 22, it had dropped 43% for the year but later saw significant gains. The upward trend intensified in late October when Tesla reported unexpectedly strong results and offered an optimistic outlook, causing shares to rise 18% from October 23 until the election.
Following Musk's robust support for Trump, Tesla's stock surged another 30% after the Republican candidate's victory.
Barclays analyst Dan Levy noted that the stock's strong positive response likely reflects Musk's prominent role in Trump's campaign, reminding investors of Tesla's status as the "original meme stock," with its performance closely tied to the rise of cryptocurrencies.
