Tesla Inc (NASDAQ:TSLA) shares headed over 14% higher in pre-market trading on Wednesday following confirmation of Donald Trump’s win in the US presidential election.
Elon Musk had been a prominent vocal supporter of Trump throughout the former president’s election campaign, prompting speculation his electric vehicle firm would now reap the rewards.
“Musk’s heavy contributions to Trump’s campaign could mean he has bought influence on shaping future regulations for autonomous vehicles operating on US streets,” Saxo chief macro strategist Saxo’s John Hardy commented.
“Elon Musk’s status as Trump’s ally from the business community hasn’t gone unnoticed by investors,” AJ Bell’s Russ Mould added.
The 14% jump in Tesla shares equates to an additional US$110 billion of the electric vehicle giant’s valuation.
Such a jump would add around US$15 billion to Musk’s own holding in Tesla if gains are held on Wednesday.
Trump outwardly thanked Musk for his support in a victory speech on Wednesday, dubbing the Tesla owner a “super genius”.
He had previously told Musk he would get the “government off your back and out of your pocketbook” in a rally last month.
Tesla was up 14.7% in pre-market trading.