Tesla is part of the trillion-dollar club again

Tesla shares have popped since the U.S. election as investors bet that a Trump presidency will benefit the automaker led by ally Elon Musk. Tesla’s shares have rallied nearly 30% since Tuesday, including an increase Friday morning that pushed the company’s market cap past the $1 trillion mark.

The share spike is largely related to Musk, who launched a multi-million dollar effort to re-elect Donald Trump that included using X, the social media platform formally known as Twitter that he owns. Musk, who also owns privately held companies like SpaceX, The Boring Company, and Neuralink, has publicly supported Trump in spite of president-elect’s anti-EV stance and climate change skepticism.

Tesla first reached the trillion-dollar valuation club three years ago. Shares hit a high of $407 a share November 2021, but fell more than 70% over the next year. The stock, which has been volatile, began to recover in spring 2023.