Following a sweeping victory for Donald Trump in the US presidential elections, Tesla’s shares surged, elevating CEO Elon Musk's wealth by $20.5 billion to $285.2 billion, according to Forbes’ Real-Time Billionaires list.
Musk, who openly endorsed Trump’s candidature and attended his rallies, witnessed a 7.73 per cent boost in net worth as Tesla shares shot up by 13 per cent to $286.10, marking an 18 per cent rise in just two days.
This market rally appears linked to renewed investor optimism following Trump’s election success.
While Tesla led gains in the technology sector, with a remarkable 14 per cent jump, rival electric vehicle (EV) makers faltered. Shares in Rivian plummeted by 8 per cent, while Lucid Group dropped 4 per cent, and China’s NIO slid by 5.3 per cent.
Jeff Bezos, founder of Amazon, has likewise benefitted, his fortune swelling by $5.7 billion or 2.62 per cent, positioning him as the world’s second-richest person with $222.1 billion.
Oracle co-founder Larry Ellison saw his wealth soar by $11.4 billion, or 5.47 per cent, now ranking him as the third-richest billionaire globally with $220.5 billion.
Meanwhile, Meta CEO Mark Zuckerberg’s net worth declined slightly, with Meta shares falling by 1.4 per cent, leaving Zuckerberg with a net worth of $197.8 billion.
Trump’s win, marking his return to the White House as the 47th President, buoyed the markets on Wednesday. The Dow Jones Industrial Average leapt by 1,309 points, or 3 per cent, hitting a new peak, while the S&P 500 gained 2 per cent and the tech-heavy Nasdaq rose by 1.8 per cent.
Small-cap stocks also experienced significant growth, with the Russell 2000 surging 4 per cent, reflecting confidence in Trump’s pro-business policies.
Investors anticipate that Trump’s administration may usher in a wave of tax cuts and regulatory rollbacks, which could benefit growth stocks and industries aligned with Trump’s economic agenda.
Financial institutions and tech firms particularly saw gains, with major banks rising by over 6 per cent on expectations of relaxed regulations. JPMorgan, Bank of America, and Wells Fargo were among the prominent gainers.
Tesla’s strong showing on the stock market further underscores its resilient position within the tech sector, despite the struggles of other EV makers.
The recent rally reflects optimism about Tesla’s profitability prospects under potentially favourable policies from Trump’s administration.
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