You'll have to explain this one, especially with the new administration wanting to roll back everything related to electric vehicles.
The only way I can see this benefiting Tesla is, the tariffs which would put a hefty price tag on foreign electric vehicles, i.e. Asian imports.
Tpop33, It has already begun.
Trump Win Sparks Record $64 Billion Gain for World’s 10 Richest People
- Elon Musk, Jeff Bezos and Larry Ellison among top gainers
The net worth of billionaires led by
Tesla Inc.’s Elon Musk, the world’s wealthiest person, surged by $63.5 billion on Wednesday, according to the Bloomberg Billionaires Index. Musk alone added $26.5 billion to his pot.
Tpop33, Think about the things you already know thus far. Elon used his company X, formerly Twitter, to dilute Trump's bad image and brand Harris unfavorably. Elon went so far as to run a daily million dollar raffle/lottery for people to vote in Pennsylvania. The media didn't say, but I'm willing to bet that raffle was only good in red counties. The fact is Trump owes Elon and he respects him, he's not going to promote a policy that will hurt Elon.
Consider, also, that Elon owns Space X. Elon has now positioned himself to jump to the head of the line for Department of Defense contracts just as he already has for NASA contracts. With that said, consider the fact that although Tesla and Space X are different companies what happens at Space X moves the needle at Tesla.
Tesla and
SpaceX are separate companies doing unrelated business. While Tesla makes
electric cars, SpaceX builds reusable rockets for launching astronauts and satellites into space. Yet SpaceX activities tend to move Tesla stock, which trades under “TSLA” ticker symbol.
Though Tesla stock is publicly traded, SpaceX is a private company. However, investors are yearning for a SpaceX stock IPO considering its bright commercial prospects. It receives contracts from government agencies and other entities to
send astronauts and cargo to space.
Although Tesla and SpaceX are separate companies in different industries, both have Elon Musk as their chief executive. Investors see SpaceX successes as demonstrating Musk’s ability and that makes them have more confidence in TSLA stock.
The other reason Tesla stock rallies on SpaceX activities is that they also provide free advertising for the Tesla brand. For example, NASA uses Tesla cars to transport astronauts to the mission launchpad.
Successful SpaceX missions with NASA have lifted TSLA stock. Billionaire Elon Musk runs both companies.
marketrealist.com
