Tesla Stock Surges in After-Hours Trading Amid Trump’s Growing Lead in Election

Tesla shares have experienced a significant surge in after-hours trading, driven by the increasing likelihood of a Donald Trump victory in the U.S. presidential election. As of around midnight EST on Wednesday, Tesla’s stock price jumped more than 8%, reaching a 52-week high of approximately $272 per share on the brokerage platform Robinhood. In late trading on the Nasdaq, shares were up 2.9% at $258.70.

The surge is partly attributed to Tesla CEO Elon Musk‘s high-profile support for Trump. Musk has emerged as one of Trump’s biggest backers, donating at least $132 million to the Trump campaign as of October 26. Despite Trump’s expressed hostility towards green energy and electric cars, Musk’s influence could potentially benefit Tesla in a Trump administration.

Trump, as of slightly after midnight on Wednesday, had 230 electoral college votes, with Vice President Kamala Harris trailing behind with 210 votes. Several swing states have yet to be called, but the market’s reaction suggests optimism among investors regarding Tesla’s prospects under a potential Trump presidency.

However, not all analysts are optimistic about Tesla’s long-term performance. Some investors, such as Daniel Jones from TipRanks, remain cautious due to increasing competition in the EV market and Tesla’s high valuation metrics. Jones noted that Tesla’s business continues to lose market share and that the stock is “incredibly expensive” at this time, suggesting a potential decline in the stock price.

Cathie Wood, CEO of Ark Invest, also commented on the market volatility expected around the election, suggesting that innovation often thrives during tumultuous times. She indicated that the election could be a trigger event for significant market changes, although the impact on Tesla and other stocks remains to be seen).