Shares of Tesla closed at $288, up more than 14%, in the New York trading session on November 6, 2024, as investor sentiment shifted sharply into bullish territory.

The rally followed Donald Trump‘s victory in the US presidential election as market participants predict positive policies for the electric vehicle giant.

Tesla’s CEO Elon Musk An outspoken supporter of Trump, he played a pivotal role in the campaign through a significant donation of $132 million and strategic messaging on the social media platform X (formerly Twitter).

While it remains unclear how Musk’s influence might shape the Trump administration’s policies, Wall Street analysts think regulatory changes under the new administration could benefit Tesla.

Optimism led to significant daily market volume, with over 165.2 million shares exchanged.

Breaking through the key resistance level of $273.41, the stock settled at $288.53, reflecting a 14.75% gain, adding approximately $13 billion to Musk’s personal wealth from Tesla holdings.

Tesla’s market performance in 2024: A year of recovery

Tesla entered 2024 trading at $250 after a year of mixed price movements in 2023, but the first months of the new year faced difficulties. As of the January close, the stock had fallen to $187.29, reflecting bearish pressure despite strong trading volume of 2.3 billion shares.

• February offered a glimmer of hope with positive price movements and sustained trading activity. But its first-quarter earnings report in April revealed a 9% decline in revenues (the sharpest drop since 2012) and the stock fell to $183.27.
• Starting in April, Tesla began a steady recovery and gained momentum throughout the summer. By September, the stock had risen to $260 as fundamentals improved and investor sentiment improved.

Despite the slight decline in October, the recovery trajectory remained intact, setting the stage for the dramatic post-election rally. Trump’s victory served as a critical catalyst, pushing Tesla’s shares above the $270 resistance zone to a new high of $288.53; This was in stark contrast to the previous day’s closing price of $251.40.

What You Need to Know

• Elon Musk’s support for Trump was both strategic and important. One of the former president’s biggest financial backers, he contributed $119 million to mobilize Republican voters and pledged to donate $1 million a day to people who signed a petition supporting his political action committee.

• Musk’s influence extends far beyond politics. As Tesla’s largest individual shareholder, he owns over 411 million shares, accounting for approximately 13% of the company’s outstanding shares.

• In addition to Tesla, Musk also owns significant shares in X and SpaceX, strengthening his position as one of the most influential names in technology and finance.

• Investor sentiment due to Elon Musk’s support for Trump triggered a stock rally, which increased Tesla’s market value by $120 billion, pushing it above $900 billion for the first time since July 2023.

While Tesla’s impressive rally underscores investors’ confidence in a favorable policy environment, the road ahead remains uncertain.

For now, Tesla’s upward momentum is a testament to the market’s optimism and Musk’s ability to align his vision with the prevailing political winds.

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