Tesla’s stock market value has surged by half a trillion dollars since the presidential election, reflecting investor optimism about Elon Musk’s strengthened position under the Trump administration. Despite disappointing financial results and declining sales in 2024, Tesla’s stock continues to climb.

Investors are betting on President Trump’s deregulatory agenda benefiting Tesla, particularly through streamlined rules for self-driving technology. Musk, now serving as head of the new Department of Government Efficiency, has promised to launch robotaxis in Austin by June and nationwide by 2025.

However, the company faces significant challenges. Trump’s policies present a mixed bag for Tesla, with potential elimination of the $7,500 federal EV tax rebate and lower emission standards threatening Tesla’s lucrative regulatory credits business. The company is also under investigation by federal safety regulators regarding its Full Self-Driving technology.

Musk’s recent political activities have sparked controversy, particularly in Europe where he’s endorsed far-right politicians and faced backlash over controversial gestures. These actions risk alienating potential customers and complicating regulatory approvals in key markets.

Despite these challenges, Tesla’s market value has reached approximately $1.3 trillion, exceeding the combined worth of numerous major automakers. Musk remains bullish, suggesting Tesla could become “the most valuable company in the world.”

Read more: Investors are betting Elon Musk and Tesla will make a fortune under Trump even as threats mount

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