Tesla (TSLA) and Bitcoin (BTC-USD) may be emerging as the new Trump trades, entities closely linked to Trump. Elon Musk’s decision to throw his weight and capital behind Donald Trump’s bid for President has proven highly lucrative for Tesla shareholders. Since Trump’s victory over Vice President Kamala Harris last week, TSLA stock has been rising steadily. Meanwhile, Bitcoin has sparked a rally across crypto markets as enthusiasm builds for Trump’s pro-crypto and pro-Big Business agenda.
Tesla and Bitcoin Prices Are Surging
Throughout the election season, Tesla has performed extremely well, partly because Musk’s relationship with Trump has been in full focus. In the week since the election, TSLA stock has risen 21%, showing steady growth. Over the past three months, shares have surged 75% as Trump’s path to victory continued to inspire investor confidence in the electric vehicle stock.
Meanwhile, Bitcoin prices have been rising as well. Since Trump’s decision to embrace crypto in June 2024, BTC prices have been mostly trending upward. Recently, they soared to a new high on momentum driven by the Federal Reserve’s latest interest rate cut announcement. As of this writing, Bitcoin is trading above $84,000 per coin, the highest price point to date.
This rally has sparked speculation as to just how high Bitcoin can go under Trump. While it is difficult to predict an exact number, it is likely that his administration will send it up even further by rolling back regulations. TSLA stock could rise as well if Musk is granted a position in Trump’s cabinet.
Some Trump Trades Are Stronger Than Others
Until recently, the term “Trump trades” likely sparked images of Trump Media & Technology Group (DJT), the parent company of Truth Social. But unlike Tesla, DJT stock has struggled since its initial election day surge, indicating clear instability. Now that Musk is linked directly to Trump, Tesla is positioned to benefit directly as he takes office.
As the most valuable crypto and a bellwether for the sector, Bitcoin is also a likely winner for the upcoming Trump term. As long as the new administration continues the Republican Party’s historic stance on prioritizing deregulatory measures, crypto markets will likely benefit with BTC at the forefront.
