Tesla under Trump

After Trump won back the presidency last week, markets shot higher. But some shares did better than others. Tesla surged 15% on the day. Elon Musk was a very visible supporter of Trump's campaign, but does that justify a $120 billion plus increase in Tesla's market cap? Perhaps not, but there are various theories as to how the Trump administration could be beneficial to Tesla.

The main one I have come across relates to self-driving software regulation. If Musk gets his way, there will be a single autonomous driving standard applied throughout the whole of the US, instead of each state being responsible for the regulation. State-by-state rules would be a nightmare to navigate.

Ironically, Trump is not a fan of electric vehicles. He wants to support old-school car manufacturers and oil and gas companies. That could have a negative impact on Tesla sales as EV subsidies are cancelled. Having said that, it could actually result in less competition for Tesla.

Either way, we have 403 clients who own Tesla and they sure enjoyed the rally last week.