Tesla’s market value reached $1 trillion on Friday after Donald Trump’s election win boosted the EV maker’s stock. Tesla’s share price rose over 6%, hitting about $313, marking the first time it’s been above $300 since September 2022. This makes Tesla the ninth largest company in the world by market cap. Tesla CEO Elon Musk’s growing connection with Trump seems to be giving Tesla an edge, possibly putting its competitors at a disadvantage.
Over the past few months, Musk has become a close ally of Trump, even spending election night with him at Mar-a-Lago in Florida. Earlier this year, Musk donated $80 million to a super PAC supporting Trump’s campaign.
Musk is expected to have some role in Trump’s administration, helping lead a new “Department of Government Efficiency” (DOGE). This group aims to cut federal spending, with Musk saying he’d target a $2 trillion reduction. The group plans to conduct an audit of government spending and suggest reforms, though achieving these cuts may be challenging, given the $6.75 trillion spent by the government in 2024.
In this role, Musk said he’d support national rules for self-driving cars — important for Tesla — and reduce what he sees as excessive regulations affecting his businesses. Currently, Tesla, SpaceX, Neuralink, and X are all under at least 20 different investigations.
However, Musk’s role isn’t fully defined yet. Cantor Fitzgerald CEO Howard Lutnick, a leader of Trump’s transition team, suggested Musk would work “next to” the government, possibly writing software to help reduce government costs. This could let Musk keep running his companies without needing to step down, as he would if he took an official position.
While Trump’s win is seen as positive for Tesla, it may be a setback for other automakers with EV plans. Trump is expected to freeze parts of President Joe Biden’s Inflation Reduction Act, which offered $7,500 tax credits for American-made EVs. Musk supports ending these credits, believing it would help Tesla compete with its rivals.
