Elon Musk’s Wealth Surges Following Trump Election Victory

Elon Musk’s net worth has risen by approximately $15 billion as shares of Tesla (TSLA) surged 13% after Donald Trump was declared the winner of the U.S. presidential election.

Musk actively supported Trump’s campaign, and during Trump’s victory speech, he praised Musk as a “super genius.” Investors are optimistic that a Trump presidency will benefit both Tesla and Musk, who is already the world’s richest person, with a net worth previously estimated at $260 billion.

The rise in Musk’s wealth coincides with TSLA stock hitting $285 a share. This increase marks a turnaround for Tesla’s shares, which have seen fluctuations this year due to reports of falling sales and growing competition from other car manufacturers. Following today’s surge, Tesla’s stock performance has improved by 15% in 2023.

Analysts Weigh In

While some analysts view Trump’s win as a potential boon for Tesla and Musk, caution exists for the wider electric vehicle market. Dan Ives, a well-respected technology analyst from Wedbush Securities, warned that a second Trump term could present challenges for the EV sector as a whole.

Nevertheless, Ives believes that Tesla could benefit, especially if Trump increases tariffs on imported vehicles from competitors like Nio (NIO). Unconfirmed reports suggest that Trump may consider offering Musk a position in his administration.

Are Investors Buying TSLA Stock?

Currently, Tesla stock has a consensus Hold rating from 35 Wall Street analysts, which includes 11 Buy, 16 Hold, and eight Sell recommendations issued in the last three months. The average target price for TSLA stands at $207.83, indicating a potential downside of 27% from its current value.

Read more analyst ratings on TSLA stock

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.