Tesla she’s on a roll – her market capitalization reached over $1 trillion. With a valuation of around $1.062 trillion, Tesla has achieved its highest valuation in over two years. Its next largest competitors in terms of market capitalization are Japanese Toyota Motor Co. and Chinese BYDworth $288 billion and $114 billion, respectively, according to Quartz.
Tesla is worth as much as 16 other companies combined
Tesla, based in Austin, Texas, has a value matched only by the combined market capitalization of the next 16 most valuable auto companies. Among them are foreign companies such as Hyundai Motor Co. and Stellantisas well as domestic competition like General Motors and Ford Motor Co.
Tesla CEO Elon Musk chose Donald Trump
The company itself is not responsible for its recent stock market boom. All because of the CEO’s bet Elon Musk on Donald Trumpwho won the presidential election in USA and will take office in January.
Musk devoted both time and money to helping Trump win. On Tuesday night, the president-elect announced that Musk’s reward will be to oversee an “outside-of-government” advisory board that will make recommendations on cutting federal spending.
Musk heads DOGE’s advisory board
Musk has already said he plans to use his place at the helm of the Department of Government Efficiency (DOGE) to make it easier for companies to streamline federal regulations for driverless vehicles that Tesla is working on. It also gives Musk a degree of power over the agencies that regulate his companies, including Tesla and SpaceX.
Musk’s businesses will avoid tariffs
According to Wedbush Securities analyst Dan Ives, investors can expect tariff negotiations to result in an exemption for both Tesla and Apple, allowing those companies to avoid the burden of any tariffs. Trump promised that the tariffs would be huge. During the campaign, Trump proposed raising tariffs on imports from China by a total of 50% to 60%, while adding tariffs of 10% to 20% on products from the rest of the world.
The lack of relief will be good for Tesla
Trump intends to defund the Inflation Reduction Act and eliminate the $7,500 tax credit for purchasing new electric vehicles. According to both Ives and Musk, this is likely a positive for Tesla given its market dominance. It could also boost sales through the end of 2024 as consumers rush to take advantage of the tax break before it is withdrawn.
