Thu Nov 07 08:49:06 UTC 2024: ## Tesla Soars on Trump Win, While EV Rivals Plunge
**NEW YORK (AP)** – Tesla’s stock surged Wednesday following Donald Trump’s victory in the presidential election, with investors betting that the electric vehicle giant and its CEO Elon Musk will thrive under a Trump administration.
Analysts believe Trump’s policies will significantly benefit Tesla, particularly his stance on subsidies for alternative energy and electric vehicles. The proposed reduction in subsidies would likely hurt smaller EV competitors, while Trump’s plans for tariffs on Chinese imports could hinder the entry of Chinese-made EVs into the U.S. market.
“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”
Tesla’s stock jumped 14.8% on Wednesday, while shares of rival EV makers tumbled. Nio, a Shanghai-based EV company, fell 5.3%, electric truck maker Rivian dropped 8.3%, and Lucid Group declined 5.3%.
Tesla dominates the U.S. electric vehicle market, holding a 48.9% market share as of mid-2024, according to the U.S. Energy Information Administration.
Trump’s victory comes after a year of mixed fortunes for Tesla. While the company saw sales and profits decline in the first half of 2024, its third-quarter profit rose 17.3%. However, the company faces investigations into its “Full Self-Driving” system following reports of crashes, and investors were disappointed by the unveiling of Tesla’s robotaxi, which appeared less advanced than rival technologies.
Despite these challenges, Tesla’s stock has seen a 16.1% gain for the year, fueled by the recent rise in share prices.
First Piper 