Tesla jumps in trading overnight as Trump backer Musk seen taking advantage

On By Littum

SpaceX and Tesla founder Elon Musk participate in a town hall-style meeting to promote early and absentee voting at Ridley High School on October 17, 2024 in Folsom, Pennsylvania.

Anna Moneymaker | Getty Images News | Getty Images

Shares of Tesla rose overnight as investors bet that a potential Donald Trump election victory would benefit major backer and automaker CEO Elon Musk.

Tesla shares rose 12% in overnight trading on the Robinhood brokerage platform. The former president had held a significant lead over Vice President Kamala Harris in Electoral College votes, according to NBC News’ tally, narrowing her path to victory.

Last month, Musk donated nearly $75 million to America PAC, the super political action committee he set up earlier this year to support the Republican candidate.

Trump has promised to name Musk head of a government efficiency commission if elected. During his speech at Trump’s Madison Square Garden rally in late October, the SpaceX owner said he could cut $2 trillion from the federal budget in that role.

“Your money is being wasted and the Department of Government Efficiency will fix it,” he told the meeting. “We want to get the government off your back and out of your wallet.”

Stock chart iconStock chart icon

hide content

TSLA, year to date

As of Tuesday’s close, the stock has significantly underperformed the broader market this year, with shares up about 1.2% compared to the 21.2% year-to-date gains seen by the S&P 500.

In Tuesday’s regular session, Tesla advanced 3.5%, snapping a six-day losing streak.

The move comes even as Trump has been viewed as unfriendly to clean energy stocks — a group that may include EV makers like Tesla.

“We believe a Trump presidency will be an overall negative for the EV industry as the electric rebates/tax incentives are likely to be withdrawn, but for Tesla we see this as a huge positive,” Wedbush Securities’ CEO wrote Dan Ives in a note to clients.

“Tesla has the scale and reach unmatched in the EV industry, and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV environment, coupled with likely higher Chinese tariffs that would continue to push away lower-cost Chinese EV players. (BID, Nineetc.) from flooding the US market over the coming years,” he continued.