New York New York: Tesla shares surged on Wednesday after the election sent Donald Trump back to the White House, an outcome that CEO Elon Musk has strongly supported in the final months of the race. With the expectation that subsidies for alternative energy and electric vehicles would be threatened, it could make significant profits under the U.S. Although this would be negative for the industry overall, it could benefit Tesla due to market share gains. Shares of rival electric vehicles fell sharply on Wednesday.
Tesla shares jumped 14% at the opening bell. Trump has proposed tariffs of 10% to 20% on foreign goods that would also hit electric vehicle makers outside the US, particularly China. “Tesla has unmatched scale and scope,” Wedbush analyst Dan Ives said in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidized environment, with cheaper Chinese EV companies likely to continue to be driven away due to China's high tariffs.” Shares of rival EV maker Rivian fell 8% and Lucid Group fell 4%. China-based NIO fell 5.3%.
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