Tesla stock benefits from political prospect of Trump's renewed candidacy

After Donald Trump's election victory, Tesla's stock saw a rapid increase of 14 percent on a Wednesday, potentially paving the way for a possible second presidential run. Behind this is Elon Musk's strategy, who supported Trump in the final months of the campaign. Analysts predict a favorable regulatory environment for Tesla. If Trump cuts subsidies for alternative energy and electric vehicles, it could be a setback for the entire EV sector — paradoxically, however, with positive effects for Tesla and its market dominance. This prospect led to a significant drop in the stocks of Tesla competitors: Rivian lost 8 percent, Lucid Group 4 percent, and the China-based company Nio 5.3 percent. Dan Ives, a researcher at Wedbush, comments: "Tesla has an unprecedented size and reach." This dynamic could provide Musk and Tesla with a clear competitive advantage if EV subsidies are eliminated. In addition, higher tariffs on Chinese imports could further push affordable Chinese EV manufacturers out of the market. The Trump administration also plans import tariffs of 10 to 20 percent on foreign products — a move that could strongly impact the imports of Chinese electric vehicles.