Tesla (TSLA, Financial) shares rose more than 6% recently, pushing its market capitalization past the $1 trillion mark. Since a recent political development, Tesla's stock has soared approximately 27% this week as investors grow optimistic about potential benefits for the company. CEO Elon Musk has notably supported political campaigns with significant financial contributions.
Prior to the recent rally, Tesla's stock had increased by about 1% year-to-date. This recent surge brings its annual gain to around 26%. Tesla now joins a prestigious group of tech giants with a market value exceeding $1 trillion, including Nvidia, Apple, Microsoft, Alphabet, Amazon, and Meta.
Industry analysts suggest that potential changes in regulatory landscapes might favor Tesla and other companies. Previous statements from political figures hinted at cuts to federal tax credits for electric vehicles, which have been vital in boosting Tesla's sales.
In its latest financial report, Tesla announced a revenue of $251.8 billion and a profit of the same amount, with third-quarter figures reaching $217 billion. During a financial call, Musk projected a 20% to 30% growth in Tesla's auto sector next year, attributed to lower-cost vehicles and advancements in autonomous driving technology.
Tesla has dedicated over a decade to developing autonomous vehicle technologies. While its U.S. competitor, Waymo, a subsidiary of Alphabet, has made strides with commercial robotaxi services, Musk plans to use his influence for establishing a federal approval process for autonomous vehicles, addressing regulatory challenges faced by the company.
