Nov 11 Reuters Tesla shares jumped more than 6 premarket on Monday, extending a rally fueled by investor bets that the automaker would benefit from CEO Elon Musk39;s backing of U.S. Presidentelect Donald Trump.
At 341.45, Tesla is expected to add nearly 65 billion to its value if premarket gains hold. The stock has jumped nearly 28 since Trump39;s election victory was declared on Wednesday, surpassing 1 trillion in market value for the first time in two years.
Tesla39;s yeartodate gains were just over 1 before Trump secured his second term at the White House.
Musk has been supporting Trump for months in the hopes that his close ties to the now Presidentelect would position his companies to benefit under the new administration, analysts have said.
The billionaire contributed at least 119 million to a proTrump spending group, federal records show.
As an 39;efficiency Czar39;, Musk is likely to see this as an opportunity to sweep away red tape and streamline regulation, potentially helping his companies that are at the forefront of technological innovation, said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
From Tesla39;s electric vehicles to SpaceX rockets and Neuralink brain chips, Musk39;s business ventures depend heavily on government regulation, subsidies or policy.
Tesla39;s selfdriving technology has been under scrutiny from safety regulators as Musk attempts to shift the company39;s focus towards autonomous driving and robotaxis.
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