What drives interest in EVs these days? It’s obvious, right? A mix of environmental concerns, financial incentives, tech breakthroughs, the shift toward sustainability, and that high-end appeal. Well, maybe. But last week, all it took was one man to shake up this industry, and that man’s name is Donald Trump.
Yet, it wasn’t the entire EV sector that saw gains, but one company in particular — Tesla. After Trump’s election win, Tesla stock had its best week in over a year, with a wild surge fueled by the market buzz. The company surged 32% for the week, closing at $321.22 per share, pushing the company’s market cap past the $1 trillion mark for the first time since 2022.
What’s even more impressive is the sheer concentration of wealth in the hands of one man — Elon Musk. Tesla’s head inflated his net worth by a staggering $52 billion in just a week. The world’s richest man is now sitting on a $314 billion fortune and is $84 billion wealthier than the second uber-rich on the list, Amazon founder Jeff Bezos.
Meanwhile, Trump’s fortune is pegged at $6 billion, largely thanks to his stakes in Truth Social’s parent company, the Trump Media and Technology Group, as well as his real estate portfolio and other assets.
As eye-popping as Musk’s current net worth is, it’s not his personal best. Back in late 2021, he was worth over $330 billion when Tesla shares were trading above $400 each — about 27% higher than today’s levels.
So, what’s driving Tesla’s post-election rally? The answer seems to lie in the ties between Trump and Musk, with the Tesla CEO emerging as one of Trump’s most prominent supporters during the 2024 campaign. The two have also discussed a possible role for Musk in the Trump administration.
Whether Musk could actually step into a public role is up in the air, given his massive private business empire. Typically, entrepreneurs entering government need to divest their assets to avoid conflicts of interest, but Musk’s stakes in Tesla, SpaceX, and X are so enormous that selling them off could send shockwaves through the markets.
It’s clearly a two-way street here, with Trump calling Musk a “super genius” and a “new star.” On a broader scale, Trump’s plan to impose tariffs on Chinese imports could spell trouble for foreign EV competitors trying to sustain their sales overseas.
Are Trump and Musk the next iconic duo? Only time will tell, especially since their relationship hasn’t always been this cozy.