According to media reports, on November 8, Tesla's market value saw a significant increase, surpassing the $1 trillion mark. This surge is attributed to expectations that Elon Musk's company may receive favorable treatment from the next U.S. administration under President-elect Donald Trump, as Musk provided key support to Trump during his campaign.
On that day, Tesla's stock jumped by 8.2%, reaching $321.22, pushing the company's market capitalization above $1 trillion for the first time in over two years. Tesla's stock gained 29% last week, adding over $230 billion in value and marking its best performance since January 2023.
Musk has long focused on autonomous vehicle technology, setting aside plans to manufacture a budget car priced under $30,000. However, obstacles in development and regulatory approval have delayed the commercialization of this technology.
In late October, Tesla reported a rise in quarterly profit margins and projected a 20% to 30% increase in deliveries next year, boosting its stock price significantly.
Tesla's stock trades at 93.47 times its projected earnings over the next 12 months. By comparison, the AI chip giant Nvidia trades at 38.57 times, Microsoft at 30.77 times, and Ford at 6.29 times.
