Tesla’s stock surged over 6% in early trading on Friday, propelling the electric vehicle company to a milestone market capitalization of over $1 trillion for the first time.
The company’s shares have jumped by about 27% this week, following President-elect Donald Trump’s victory in the US presidential election.
Investor optimism has grown, with many speculating that Trump’s return to the White House could benefit Tesla.
Elon Musk, Tesla’s CEO, has been a vocal supporter of Trump, contributing over $130 million to his pro-Trump campaign efforts.
As of Tuesday’s market close, Tesla’s market value stood at $807.1 billion.
Before this week’s surge, the company’s stock was up just 1% for the year. With the recent rally, Tesla’s year-to-date growth now sits at around 26%.
Meanwhile, US stocks were mostly near record highs on Friday, although the Nasdaq lagged as the initial post-election optimism began to fade.
China’s latest stimulus package also fell short of expectations.
The S&P 500 rose by 0.3%, while the Nasdaq Composite dropped slightly, and the Dow Jones Industrial Average gained 0.6%.
Despite the waning excitement from the “Trump trade,” which initially boosted stocks, Wall Street continues to show resilience. Investors are now more cautious, questioning whether Trump will be able to push through his ambitious policy proposals.
The dollar and Treasury yields, for example, have receded from their post-election highs.
Concerns over China’s new $1.4 trillion fiscal stimulus plan, which aims to refinance local government debt, have also weighed on investor sentiment.
Many remain skeptical that it will effectively address the country’s economic challenges, putting pressure on oil prices, the yuan, and domestic stocks.
Despite these headwinds, major U.S. stock indexes are still poised for solid weekly gains, buoyed by a strong performance on Thursday after the Federal Reserve’s anticipated interest rate cut.
The S&P 500 is edging closer to the 6,000 mark for the first time in its history.
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