Tesla shares soar as Donald Trump hails "genius" Elon Musk

Tesla Inc. shares surged on Wednesday following Donald Trump's declared victory in the U.S. presidential election, during which he praised Elon Musk as a "genius."

Tesla shares soar as Donald Trump hails "genius" Elon Musk

Shares of the Austin-based electric vehicle maker climbed 12%, reaching $260.15 at the opening bell on Wall Street. Investors reacted positively to the possibility of a Trump win, with Wall Street futures—bets on future stock prices—rising as the former president appeared on track to defeat Vice President Kamala Harris. Musk posted a photo on his social media platform X, showing him with Trump at an election watch party in Florida, where the Republican candidate singled him out during his victory speech. "We have a new star, a star is born: Elon," Trump said, expressing admiration for Musk's SpaceX rocket and the deployment of Starlink internet during Hurricane Helene. "He's an amazing guy," Trump continued. "He's a character, he's a special guy, he's a super genius." Musk was a vocal supporter of Trump throughout the campaign, backing the former president through America PAC, a political action committee that contributed tens of millions of dollars and even gave away $1 million to registered voters in key states.

Trump victory boosts Tesla shares

"Tesla shares are rising ... due to his special ties with Donald Trump," said Andrea Tueni, an analyst at Saxobank, in a comment to AFP. Tueni added that Trump "owes him a lot," and investors are hopeful that their relationship "will turn into something positive for Tesla." During the campaign, Trump suggested that, if re-elected, he would appoint Musk to lead a government efficiency commission aimed at cutting "trillions" of dollars in wasteful spending.