Tesla (TSLA) shares skyrocketed on Friday, closing at their highest level in over two years as the electric vehicle giant’s market cap surpassed $1 trillion. The stock’s rally, bolstered by optimism over CEO Elon Musk’s alliance with President-elect Donald Trump, has sent Tesla soaring, with its share price up 29% over the past week alone.
The Dow Jones Industrial Average and S&P 500 also hit record highs this week, with the Dow crossing 44,000 and the S&P 500 reaching 6,000. However, Tesla’s meteoric rise has captured Wall Street’s attention as the stock surged 8.2% on Friday, closing at $321.22 and peaking at $328.70 intraday, marking the EV leader’s first trillion-dollar valuation in over two years. With this milestone, Tesla rejoins the elite ranks of trillion-dollar companies, alongside tech giants such as Nvidia, Apple, and Microsoft.
This recent rally comes amid positive momentum from Tesla’s stronger-than-expected third-quarter earnings and vehicle deliveries, alongside growing excitement around its plans for a robotaxi service featuring the upcoming Cybercab. Investors have also been energized by Musk’s potential influence within a Trump administration, given Trump’s offer for Musk to lead a commission on government efficiency.
The prospect of a GOP-led rollback of EV tax credits initially raised concerns about potential headwinds for Tesla’s growth, but Wall Street appears optimistic about the company’s long-term position. Wedbush analyst Dan Ives highlighted Tesla’s unique market advantages, citing its unmatched scale in the EV industry and its positioning to benefit from anticipated higher tariffs on Chinese EV imports, which could stifle competition from companies like BYD and Nio. “Tesla’s dominance could be enhanced in a non-EV subsidy environment,” Ives noted, adding that a Trump victory could boost Tesla’s stock by an estimated $40-$50 per share and accelerate its autonomous vehicle (FSD) ambitions by 2025.
Musk’s endorsement of Trump also positions him as a key player in future trade, environmental, and manufacturing policies, with potential benefits extending well beyond Tesla. Investors are closely watching Musk’s every move, as his calculated political alignment appears to be paying off substantially in Tesla’s favor, reinforcing both the company’s financial outlook and Musk’s status as a central figure in the rapidly evolving EV landscape.
