tesla For the first time in its history, it has exceeded a market capitalization of a trillion dollars (equivalent to one billion euros), after the victory of donald trump in the presidential elections this Tuesday. With an increase of more than 6% in the index Nasdaqthe value of its shares is around 312 dollars (approximately 290.35 euros per share).
With investors betting on the Republican’s future economic policy, the market shows confidence in the influence he could have Elon Muskfounder of the automotive company, in the next US Administration. There is speculation about a possible prominent role for Musk in an eventual Trump government.
In fact, during the election campaign, the tycoon promised Musk that he would be named “secretary of cost reduction”a position that would give him the authority to reduce the size of the bureaucracy in the United States Public Administration.
A million-dollar alliance that could benefit Tesla
In the final months of the election campaign, according to Republican Party records, Musk has invested 130 million dollars (121.15 million euros) in Trump rallies, advertising and speeches and his vice presidential candidate, J.D. Vance. In addition, he has mobilized the entire infrastructure of his social network, X (formerly Twitter), spreading a large number of messages of support for the New York tycoon.
In response, during the election campaign, Trump proposed impose 10% tariffs on all imported products and up to 100% on foreign vehicles. A measure that, if carried out, could initially benefit American manufacturers like Teslabut also to other companies linked to combustion engines, such as ford either General Motors.
Investors place their confidence that the future of Musk and his companies will be prosperous during the next term. In his victory speech, Trump made clear his support for the South African businessman. “We have a new star, a star is born, Elon… he’s an incredible guy,” he said.
Although Tesla has seen a clear rise in the electric vehicle industry, which could give it a competitive advantage in a future without subsidies for electric cars, the rest of the manufacturers now fear a possible negative impact with Trump’s return to power on January 20, 2025. The investiture of the Republican on the steps of the Capitol in Washington could trigger a series of measures against him.
Repeal electric vehicle provisions
Several analyzes consulted by Europa Press consider that Trump’s victory could be a boost for Tesla. The signature wedbush estimates that The company’s shares could rise by up to an additional $50 if, in addition, the autonomous driving system is successfully implemented Full Self Driving from 2025.
However, although Trump’s arrival in the Oval Office might seem positive for Tesla at first glance, the fact that the Republicans have managed to take control of the United States Senate, which is not so positive, is not so positive. Until now it was in the hands of the Democratsby achieving a majority of 51 seats out of a total of 100. Furthermore, in the House of Representatives, the count also shows a clear victory for the Republicans, although The official announcement of the final result is still awaited.
Musk faces the possibility that, with Republican control in Congress, various provisions related to electric vehicles will be repealed
Musk faces the possibility that, with Republican control of Congress, various provisions related to electric vehicles are repealedas well as the polluting emissions requirements and fuel consumption. This could limit Tesla’s revenue from selling environmental credits to other manufacturers seeking to comply with regulations imposed by the Democratic Administration.
However, Musk has downplayed concerns about a possible rollback in government incentives for electric vehicles, instead highlighting the potential for companies to reap the benefits of deregulation.
During Tesla’s quarterly results presentation a few weeks ago, Musk called for accelerated approval of autonomous vehicle technology and admitted that he would “try to get it” if Trump eventually appoints him to a position in his new Administration.
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