The stock of electric vehicle maker Tesla rose 15% amid a broader market rally following a decisive win by Donald Trump in the U.S. presidential election.
Tesla chief executive officer (CEO) Elon Musk’s net worth increased by an estimated $15 billion U.S. as shares of Tesla soared in a broader rally that sent the Dow Jones Industrial Average up more than 1,300 points in a day.
Musk had been a big campaigner and donor for Trump, giving more than $100 million U.S. of his own money to help the former president get re-elected.
Trump singled out the Tesla CEO in his election night victory speech, calling him a “genius.”
Investors anticipate that a Trump win will be good for the electric vehicle maker and Musk, who is already the world’s richest person with a net worth that has been estimated at $260 billion U.S.
The rise in Tesla stock is a reversal for the company’s share price, which has been in a prolonged slump due to declining sales and increased competition from other automakers.
While Trump’s victory might be perceived as positive for Tesla, some analysts are sounding a note of caution for the electric vehicle market.
Dan Ives, a technology analyst at Wedbush Securities, has said that a second Trump presidency would likely be an “overall negative for the EV industry.”
With today’s increase, Tesla’s stock is now up 16% on the year and trading at $288.53 U.S. per share.