Tesla’s shares surged 12% during premarket trading on Wednesday after Republican Donald Trump defeated in his Democratic rival Kamala Harris in the US presidential elections.
The EV manufacturer’s CEO Elon Musk has openly backed Trump throughout his election campaign.
Trump has indicated his intention to appoint Musk to lead a government efficiency commission should he secure victory.
“It’s still highly unclear what would happen to subsidies for EVs, it’s likely a more conciliatory policy will be incoming. He’s likely to want to keep Elon Musk onside and if the promised government advisory role comes through Musk will wield more influence.” said Susannah Streeter, who heads money and markets at Hargreaves Landsown.
In Frankfurt, Tesla’s listed shares showed a significant increase of over 14% on Wednesday.
Trump in his victory speech in Florida thanked Musk and acknowledged his huge support during his campaign. He called the billionaire and an amazing guy.
“We have a new star; a star is born: Elon,” Trump said, highlighting Musk’s involvement. “He’s an amazing guy. We were sitting together tonight. You know, he spent two weeks in Philadelphia, in different parts of Pennsylvania, campaigning,” he added.