Elon Musk's net worth is expected to jump by roughly $15 billion following a surge in Tesla's stock price amid Donald Trump's election victory. Tesla shares soared nearly 15 percent in pre-market trading on Wednesday, reaching $289.44 and boosting the company's market valuation by about $113 billion.
As of around 10:10 a.m. EST, Tesla's shares were trading above $280, positioning the stock to set a new record high, surpassing its previous all-time high of $273.54 that the stock reached on October 27. If this stock price holds until the market closes today, Musk's fortune could grow significantly, thanks to his 12.8 percent ownership in Tesla, as reported by The Telegraph.
Trump Parise for Musk Boosts Tesla Stock
This comes as Trump hailed Musk—a vocal supporter of his campaign—as a "genius" in his victory speech. "We have a new star, a star is born: Elon," Trump remarked, expressing admiration for Musk's SpaceX rocket and the use of Starlink satellite internet service during Hurricane Helene.
"He's an amazing guy," Trump said. "He's a character, he's a special guy, he's a super genius."
Investors reacted positively to the likelihood of a Trump win, as Wall Street rallied with the former president appeared set to defeat Vice President Kamala Harris.
Musk posted a photo on his social platform X, showing him alongside Trump at an election watch event in Florida, where the Republican candidate gave him a special mention in a victory speech.
Throughout the campaign, the tech billionaire staunchly supported Trump via America PAC, a political action committee that donated tens of millions and provided $1 million incentives to registered voters in crucial states.
Investors are hopeful that the close relationship between Musk and Trump "could bring positive results for Tesla." During his campaign, Trump vowed that, if elected, he would appoint the tech billionaire to lead a government efficiency commission aimed at cutting "trillions" in unnecessary spending.
Global Markets Rally
Tesla's stock surge comes as global markets rallied following announcements of Trump's re-election. The London stock market jumped by 0.9%, Paris by 1.0%, and Frankfurt by 0.8%, all gaining momentum in early morning trading.
Analysts largely expect that Trump's plans, which include stricter immigration, tax cuts, and broad tariffs, would likely drive inflation and bond yields higher than policies proposed by Democrat Harris.
On Wednesday morning, U.S. Treasury yields hit a four-month high, and the dollar surged, heading toward its biggest single-day gain in over two years, with U.S. equity futures up nearly 2%.
In currency markets, the dollar index jumped 1.5% to reach 104.97, marking the largest daily gain since early 2023. The euro dropped 1.7% to $1.0744, retreating from an overnight one-month high of $1.0937. The dollar also gained 1.5% against the yen, rising to 153.89 yen and pulling further away from a low of 151.34.
Bitcoin soared to a record $75,397, climbing 7% on the day. Trump is perceived as more favorable toward cryptocurrencies compared to Harris.
