Tesla shares rose 13% as Trump’s win paved the way for Elon…

NEW YORK (AP) — Shares of Tesla rose Wednesday following the election that will send Donald Trump back to the White House. Strongly backed by CEO Elon Musk in the final months of the race.

Tesla looks set to make significant gains under the Trump administration as subsidies for alternative energy decline and threaten to inflict the most damage on smaller rivals for electric vehicles.

According to the Energy Information Administration, Tesla will lead electric vehicle sales in the US with a 48.9% market share by mid-2024.

Tesla shares rose 13% on Wednesday as shares of rival electric vehicle makers fell.

Trump proposed tariffs of 10% to 20% on foreign goods, which would also affect electric vehicle manufacturers outside the US, especially in China, and the shares of electric vehicle manufacturers there also declined in US markets.

“Tesla has unparalleled scale and scope,” Wedbush analyst Dan Ives said in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in the non-EV subsidy environment, possibly including higher Chinese tariffs.” can also be added.” “This will continue to alienate cheaper Chinese EV players.”

Subsidies for clean energy, Inflation Reduction ActThe law signed by President Joe Biden in 2022 included tax credits for electric vehicle consumers as well as tax credits for manufacturing.

Shares of rival EV maker Rivian fell 9%, while Lucid Group fell 3.1%. Chinese electric vehicle manufacturer NIO lost 6% of its value.

Musk was one of Trump’s biggest donors and He transferred $70 million of his own money to the presidential race and other GOP causes. He also promised to distribute $1 million a day to voters who signed the petition for his political action committee.

However, it has been a difficult year for Tesla, with sales and profits falling in the first half of the year. Profit increased by 17.3% in the third quarter.

USA launched an investigation It switched to the company’s “Full Autonomous Driving” system after reports of accidents occurring in low visibility situations, including one that killed a pedestrian. The research covers approximately 2.4 million Teslas from model years 2016 through 2024.

Last month, investors sent the company’s shares plunging after Tesla unveiled its long-awaited robotaxi at a Hollywood studio on Thursday night; He found that while other companies were making significant progress, Tesla wasn’t making much progress with autonomous vehicles.

Tesla began selling software called “Full Self-Driving” nine years ago. But there are doubts about its reliability.