Tesla shares soared 14.75% Wednesday (Thursday AEDT) to close at US$288.53 following Donald Trump’s victory in the 2024 U.S. presidency election.
Tesla Chief Executive Elon Musk was seen as the most prominent supporter of Trump’s election race, donating more than US$130 million (A$198 million) towards the Republican campaign.
The billionaire entrepreneur has business interests that depend heavily on government regulation, subsidies and policy. Indeed, his close-knit ties and influence with Trump are expected to secure favourable government treatment for his various companies.
The electric car maker could possibly be at a competitive advantage over other manufactures if tax incentives are reduced for electric vehicles under a Republican administration, with Trump stating he will impose hefty tariffs on imported cars.
It is believed that Musk will be pivotal in eliminating government regulation that fails to serve the best interests of his companies, from Tesla to SpaceX's rockets and Neuralink’s brain chips.
In Trump’s victory speech he praised Musk as a “super genius” and a “new star”, further hinting the significant role Musk will likely play in the new Republican administration.
Trump previously declared he would establish a government efficiency commission headed by Musk.
Trump is yet to outline the specifics of the commission except to say: "I will create a government efficiency commission tasked with conducting a complete financial and performance audit of the entire federal government."
In response Musk took to his social media platform X and wrote: "I look forward to serving America if the opportunity arises, no pay, no title, no recognition is needed."
Musk endorsed Trump on July 13 this year and was a key speaker for Trump during his campaign race, playing a crucial role in helping Trump secure a second administration.
Tesla Motors (NASDAQ: TSLA) has a market capitalisation of $904.10 billion.