New York, Nov 6 (AP) Shares of Tesla soared Wednesday following an election that will send Donald Trump back to the White House, an outcome that has been strongly backed by CEO Elon Musk in the closing months of the race.
Tesla stands to make significant gains under a Trump administration due to its size, with the expectation that subsidies for alternative energy and electric vehicles will be threatened.
While that would be a negative overall for the industry, it could give Tesla an advantage because of market share. Shares of rival electric vehicles sank sharply Wednesday.
Tesla shares jumped 14 per cent at the opening bell.
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Trump has proposed tariffs of 10 to 20 per cent on foreign goods that would also impact electric vehicle maker's outside the US, especially in China.
“Tesla has the scale and scope that is unmatched," said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”
Shares of rival EV maker Rivian plunged 8 per cent and Lucid Group fell 4 per cent. China-based NIO slid 5.3 per cent. (AP)
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