U.S. President-elect Donald Trump and Elon Musk Watch Starship Rocket Launch as Tesla Shares Soar to All-Time High
Tesla shares reached a closing high of $424.77 on Wednesday, surpassing its prior record of $409.97 set in 2021, as the company’s market value has swelled by about 71% this year. The stock’s 38% rally in November marked its best monthly performance since January 2023 and its 10th best on record.
Musk, the world’s richest person, who has pledged $277 million to a pro-Trump campaign effort, is set to lead the Trump administration’s “Department of Government Efficiency,” alongside Vivek Ramaswamy. Analysts at Goldman Sachs and others have boosted their price targets for the stock, citing Musk’s support for Trump and the company’s potential for growth.
Tesla’s performance has been marked by a dramatic turn since the start of the year, with shares declining 29% in the first quarter. However, the company’s third-quarter earnings report showed a year-over-year revenue increase of 8%, and Musk is predicting a 20-30% growth in vehicle sales next year due to lower cost vehicles and the advent of autonomy.
The stock’s surge is attributed to a post-election rally and Wall Street’s increased enthusiasm for Elon Musk’s electric vehicle company, with some analysts citing Musk’s support for Trump as a catalyst for the rise.