Over just two months, Tesla's shares went from falling for the third consecutive year to record-breaking growth, making the company one of the most successful in the S&P 500 index for 2024. However, this success was not driven by the company's performance, but rather by Elon Musk's close relationship with the new U.S. President Donald Trump, according to Bloomberg.
Despite the fact that demand for Tesla's electric vehicles remains uncertain and the company's future appears undefined, investors viewed Elon Musk's aggressive support for Trump and his proximity to the new administration as a crucial factor.
After the November 5, 2024 elections, Tesla's shares surged by 73%. Due to this success, Tesla’s share price increased by 69% for the entire year of 2024, adding $572 billion to its market capitalization, which now stands at $1.4 trillion, without any significant internal changes.
Investors seem undeterred by Donald Trump's well-known disdain for electric vehicles. They are placing their bets on Musk's close ties to the administration and Trump himself, hoping it will ease Tesla’s path toward fully autonomous vehicles.