Whether you’re satisfied with the results of the 2024 presidential election or not, the only option now that the votes are in is to accept that situation and move forward with grace and confidence. Throughout their campaign for the White House, both Kamala Harris and Donald Trump had celebrities endorsing them to help persuade the public. The former relied on Megan Thee Stallion’s bodacious body and a co-sign from Barack Obama, while Trump’s support from figures like Elon Musk and Joe Rogan could be what gave him the winning edge. The South African pledged his allegiance to the Republican candidate following the assassination attempt made on his life in July; per Barrons, Musk was one of the president-elect’s biggest donors for his third campaign, spending more than $130 million supporting Trump and others in his political party.
Considering he’s the richest man in the world, dishing out this money to help his friend was nothing for the Twitter CEO, who’s only stood to benefit financially since Tesla stock is soaring and steadily filling his pockets. Interestingly, the CEO of hedge fund manager Clean Energy Transition, Per Lekander, says a second Trump presidency could mean bad news for the electric vehicle giant. In 12-18 months, Trump’s administration will “eliminate a lot of the subsidies which Tesla really has been winning on,” he predicts.
Tesla Stock Sees Rapid Gains Thanks To President-Elect Donald Trump
Before his inauguration in January, Trump has been making announcements about key positions within his administration. Since Musk was a key contributor to his success, spectators are wondering what role he could possibly take on; so far, the engineer has expressed interest in working to cut out what he considers government bureaucracy and waste. The Apprentice alum threw out the idea of Musk being a Secretary of Cost-Cutting, but only time will tell where he lands.
While waiting to see what’s next in the political sphere, hedge funds betting against Tesla stock have lost billions of dollars. Bloomberg reports that hedge funds with short positions against Musk’s company between election day and Friday’s close lost at least $5.2 billion. The number of funds shorting them has been steadily shrinking over the past four months, from 17 to 8%, according to data from Hazeltree. As those against them fight to recover and reverse their shortages, Tesla stock is thriving following the Nov. 5 election, gaining almost 30%, or over $200 billion in additional market value. The StarLink creator’s net worth went up by an astounding $50B as a result.
How Do Other Green/Electric Vehicle Companies Compare?
Overall it’s been a tough few years for the electric vehicle sector. The KraneShares Electric Vehicles and Future Mobility Index ETF indicates that they lost more than 12% in 2024, which is up from a decline of 9% in 2023. In comparison, Tesla’s value more than doubled last year and is up by an estimated 30% in 2024. As the realities of an upcoming second term for Trump settle in, there’s been a notable dip in wind and solar stocks due to his aforementioned plans to slash clean-energy incentives.
