- The shares of Elon Musk-owned Tesla have reached $1 trillion following Trump’s election victory
- There are insinuations that Musk could push for favourable regulation for his driving technology
- Tesla has maintained the lead in the automobile industry in recent times
Following Donald Trump’s election victory on Tuesday, the shares of Elon Musk-owned Tesla crossed the $1 trillion mark on Friday for the first time in two years.
The shares of the electric vehicle maker rose by more than six per cent to a more than two-year high of $315.56, after having gained 19.3 per cent at the close of Thursday.
The demand for Tesla’s shares is hinged on growing bets of a favourable treatment for Elon Musk’s companies in return for his support for Trump in his during his election campaign.
Per Reuters, there have been insinuations that Musk may push for favourable regulation of autonomous vehicles that Tesla plans and also get the U.S. National Highway Traffic Safety Administration to hold off on potential enforcement actions involving the safety of Tesla’s current driver-assistance systems.
Musk has been focused on self-driving vehicle technology, ditching plans to build an economy car priced at under $30,000. However, development and regulatory hurdles have delayed the commercialisation of such technologies.
Garrett Nelson, Senior Equity Analyst at CFRA Research, said with Trump’s victory, Musk may get expedited approval for his driving technology.
Nelson said, “Tesla and CEO Elon Musk are perhaps the biggest winners from the election result and we believe Trump’s victory will help expedite regulatory approval of the company’s autonomous driving technology.”
Tesla has been dominating the automobile industry
Tesla has maintained lead in the automobile industry being the world’s most valuable automaker for years, while Japan’s Toyota Motor, China BYD and others trailing by several hundred billion dollars.
Tesla shares trade 93.47 times its 12-month forward earnings estimates, compared with 38.57 for AI chip giant, Nvidia, Microsoft’s 30.77 and Ford’s 6.29.
Tesla unveils vision for autonomous future with Robotaxi, Robovan
Meanwhile, TheRadar reported that the CEO of Tesla, Elon Musk, has unveiled ambitious plans for Tesla’s transition from automaker to robotics manufacturer at a highly anticipated event on Thursday, October 10.
The “We, Robot” event took place at the Warner Bros studio near Los Angeles, California, and featured the debut of groundbreaking vehicles designed to revolutionise transportation.
