Tesla (TSLA.US) shares are gaining more than 13% in pre-market trade, before the US stock exchanges open. The election results so far give a certain victory to Donald Trump. The Associated Press (AP) has declared Trump the winner of the election, and investors are right to expect such a scenario to benefit the new president's friend Elon Musk, who was very involved in the Republicans' election campaign. Although, Trump has criticized electrics and announced the withdrawal of government programs designed to stimulate demand for them.
- Elon Musk donated nearly $75 million to Trump's campaign, and Donald Trump has promised to appoint him head of a new government efficiency commission that would cut spending in the US federal budget by up to $2 trillion.
- Trump's election could mean that the company could be treated on special terms vis-à-vis its competitors, or that its existing dominant position and scale of operations and production profitability will give it an advantage over companies that build electrics largely because of government programs and incentives that 'cost' the US taxpayer a lot
- An additional positive factor is the likely raising of tariffs and securing Tesla's market share, against Chinese competition (Nio, BYD, etc.), which could stir up a lot in the US EV market in the coming years. It is possible that Tesla will eventually gain a special position in Europe as well.
Tesla (TSLA.US, D1 interval)
Tesla shares are rising in pre-opening trading today to $283 per share; bulls will have an appetite to test the June maxima, above $300 per share. In such a scenario, the key support will be the level of $250 per share (23.6 Fibo retracement of the last upward impulse).
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Source: xStation5
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