Tesla stock roars to second-highest mark ever postelection; here’s why

Stock for Elon Musk’s only public company, Tesla, has had a healthy November as the polarizing figure saw wins with Tesla earnings, his endorsement of Donald Trump and his inclusion in the new, nongovernment-affiliated but government-advising Department of Government Efficiency.
In October, Musk signaled a fundamental shift for Tesla in the direction of self-driving cars — a professional white whale of Musk’s. Now, with Trump set to become president once again, Tesla could be put on the fast track to perfecting the self-driving car. 
Here’s everything you need to know about where Musk’s crown jewel car company stands after election night:
As recently as April, pressure was mounting on Tesla as its stock had torpedoed from roughly $250 a share at the beginning of the year to just $142 a share as many anticipated a dismal earnings report.
The report created doubt around the world’s most valuable car brand as it showed decreased production and sales, increased competition from Chinese electric vehicle makers such as BYD, and perhaps that the stock itself was wildly overvalued — as it still has not made good on AI-driven initiatives that have enthralled investors for years.
Musk used that moment of vulnerability and started to signal a departure from simply making cars to emphasizing development of products rooted in AI. This came to a head in October, when Tesla unveiled its long-awaited RoboTaxi, the brand’s first self-driving car and, in Musk’s eyes, the linchpin to its future.
At this event, Tesla also unveiled an AI-infused humanoid robot named Optimus. Musk predicted massive returns, as he often does, saying Optimus will be the “biggest product ever of any kind.”
The unveiling came after a strong third-quarter report in which Tesla overperformed in gross margin and vehicles delivered. The report paired with the event ultimately helped Tesla see a 22% one-day climb in its stock. 
At that point, Musk had been openly supporting Trump for president, making appearances at rallies. Also, it was disclosed in a filing to the Federal Election Commission by Musk’s America PAC that the group had given about $75 million to Trump’s election efforts from July through September. At the end of October, Reuters reported that Musk had given about $44 million to the PAC in the first half of October alone.
By the end of the election, Musk was the single most influential individual in the 2024 presidential election with his massive donations and cultural capital through X. When Trump won, it resulted in a stock boost for Tesla.
On Nov. 11, Tesla stock hit its high for the year when it climbed to $350 a share — its second-highest mark ever. That could be tied to a belief that Musk’s new friendship with Trump, and his unofficial DOGE position, will help loosen regulatory restrictions for Tesla as it seeks to develop its RoboTaxi.
Beck Andrew Salgado covers trending topics in the Austin business ecosystem for the American-Statesman. To share additional tips or insights with Salgado, email [email protected].