Elon Musk’s net worth is up an estimated $15 billion today as shares of electric vehicle maker Tesla (TSLA) soar 13% higher on news that Donald Trump has won the U.S. presidential election.
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Musk had been a big campaigner and donor for Trump, and the president-elect singled out the Tesla CEO in his election night victory speech, calling him a “super genius.” TSLA stock is soaring as investors anticipate a Trump win will be good for the electric vehicle maker and Musk, who is already the world’s richest person with a net worth that has previously been pegged at $260 billion.
Musk’s wealth is getting a boost as TSLA stock rises to $285 a share. It’s a reversal for the company’s share price, which has been volatile for most of this year amid news of declining sales and increased competition from other automakers. With today’s rise, Tesla’s stock is now up 15% on the year.
Analyst’s View
While Trump’s victory might be positive for Tesla and Elon Musk, some analysts are sounding a note of caution for the broader electric vehicle market. Dan Ives, a respected technology analyst at Wedbush Securities, has said that a second Trump presidency would likely be an “overall negative for the EV industry.”
However, Ives has acknowledged that a Trump White House should be positive for Tesla, especially if the president ratchets up tariffs on imported Chinese vehicles from competitors such as Nio (NIO). There are unconfirmed reports that Trump might offer Musk a position in his new cabinet.
Is TSLA Stock a Buy?
Tesla stock currently has a consensus Hold rating among 35 Wall Street analysts. That rating is based on 11 Buy, 16 Hold, and eight Sell recommendations made in the last three months. The average TSLA price target of $207.83 implies 27% downside risk.
