Tesla Share Prices Register Big Increase After Donald Trump Wins US Elections

The share price of Tesla, one of the big electric vehicle (EV) companies, has increased significantly due to the victory of Donald Trump in the presidential election in America. Investors hope that Tesla CEO, Elon Musk, who supported Trump in the election, will benefit from this.

Tesla’s competitors may suffer big losses due to the new government’s reduction in subsidies for EVs in America. Apart from this, Trump also plans to increase tariffs on imports from China. This could have a big impact on the sales of Chinese EV makers in America. Tesla shares rose more than 14 percent on Wednesday after Trump’s victory. However, there was a huge fall in the shares of other EV companies. Tesla ranks first in the EV market in America with more than 48 percent share. Musk had a major contribution in the donations received by Trump in this election.

Tesla has faced difficulties in the last few quarters. There was a decline in both sales and profits of the company in the first half of this year. However, the company’s profit increased by about 17.3 percent in the third quarter. Tesla’s full self-driving system is also being investigated in America. During the election campaign, Trump had said that if he becomes the President of America for the second time, he will offer Musk to take charge of a new department to minimize the obstacles from the bureaucracy. Musk gets about 75 percent of his wealth from Tesla shares. Musk is also the chief of SpaceX related to the space sector, social media platform X (earlier Twitter) and xAI related to Artificial Intelligence (AI).

Tesla’s Model Y has been the best-selling car in the world last year. Japanese automobile company Toyota’s Corolla was the best-selling car in the international market for almost two decades. Last year it stood fourth in terms of sales. According to data from Jato Dynamics, Tesla sold about 12.2 lakh units of Model Y last year. This is an increase of approximately 64 percent on a year-on-year basis. Toyota has reported a decline of about 19 percent in Corolla sales. Last year, Toyota’s RAV4 was the second best-selling car with sales of around 10.8 lakh units.