Tesla hits $1 trillion market value as Musk-backed Donald Trump win US elections

Tesla market value: Tesla 's market value closed above $1 trillion mark in a sharp rally on Friday, on expectations that CEO Elon Musk 's companies will get favourable treatment under President-elect Donald Trump for his extensive support during poll campaign.

electric automaker's shares jumped 8.2 per cent to $321.22,catapulting company's valuation above trillion-dollar mark for first time in more than two years.

stock gained 29 per cent this week, ding more than $230 billion in market capitalisation, its best since January 2023.

"Tesla and CEO Elon Musk are perhaps biggest winners from election result, and we believe Trump's victory will help expedite regulatory approval of company's automous driving techlogy," said Garrett Nelson, senior equity analyst at CFRA Research.

billionaire could push for favorable regulation of automous vehicles that Tesla plans and also get US National Highway Traffic Safety ministration to hold off on potential enforcement actions involving safety of Tesla's current driver-assistance systems, a source h told Reuters.

Musk has focused on self-driving vehicle techlogy, ditching plans to build an ecomy car priced at under $30,000. However, development and regulatory hurdles have delayed commercialisation of such techlogies.

"If Musk can convince Trump to establish federal automous vehicle rules, we think that's a good thing for auto industry because we think firms want one set of rules rar than each state making ir own," said David Whiston, equity strategist at Morningstar.

Musk's wealth topped $300 billion, according to Forbes real-time billionaires list.

Tesla shares jumped in late October after company reported a rise in quarterly profit margin and forecast 20 per cent to 30 per cent growth in deliveries next year.

It has been world's most valuable automaker for years, with Japan's Toyota Motor, China BYD, and ors trailing by a wide margin.

Tesla shares tre 93.47 times ir 12-month forward earnings estimates, compared with 38.57 for AI chip giant Nvidia, 30.77 for Microsoft, and 6.29 for Ford.