On Monday (11th) Eastern Time, all three major stock indexes in the US continued to reach new closing highs. As of the close, the Dow Jones Industrial Average rose 0.69%, the Nasdaq rose 0.06%, and the S&P 500 index rose 0.10%.
Tesla rose nearly 9%, marking its largest five-day increase in four years. Its market value increased by $92.3 billion overnight, with a total market value of $1123.5 billion, rising to seventh place in the US stock market.
Since the close on November 4th, Tesla has surged 44.25% in 5 trading days. Looking back at last week, Tesla's stock price continued to climb, with a 29% increase within the week and a market value exceeding the $1 trillion mark. According to Forbes Rich List data, Musk's net worth increased by $16.2 billion on the 11th, with total assets reaching $320.2 billion, firmly holding the position of the world's richest person.
It is currently unclear whether Musk, who spent at least $130 million on Trump's campaign, will receive a formal position in Trump's second term government or continue to influence policy decisions within Trump's inner circle.
It is expected that Musk may sign new contracts worth billions of dollars with the government, not including the $19 billion contract that his SpaceX company has already obtained. In addition, some or all of the 19 known federal lawsuits and investigations against his company may come to an end.
Analysts from Bank of America wrote in a report last week: "It is difficult to determine what benefits Musk's increasingly close public relations with Trump will bring to Tesla, but this requires close attention." They raised Tesla's target stock price from $265 to $350.
While Musk win thoroughly, the hedge fund short Tesla lost more than 5 billion dollars. According to Bloomberg's calculations based on data compiled by S3 Partners, hedge funds holding short positions in Tesla suffered at least $5.2 billion (approximately RMB 37 billion) in losses on their books during the closing period from election day to Friday.
Per Lekander, CEO of hedge fund management company Clean Energy Transition, stated that he "slightly shorted Tesla before the election. He has managed to reduce his holdings by a "considerable" amount, which means his losses are ultimately "quite small".
But we lost some money, "he said.
Lekander stated that he believes the Trump administration accounts for about one-third of Tesla's current stock price of over $300. He said, "So now Tesla's stock is more like a gamble, to see how much Trump can help Elon
According to data provided by Hazeltree, which tracks the positions of over 500 hedge funds, many hedge funds have lifted their short bets on Tesla in the past four months, a shift in stance that coincides with Musk's support for Trump on July 13th. Data shows that as of November 6th local time, only 7% of hedge funds net short Tesla, down from 17% in early July. However, only 8% of hedge funds net long the stock.
It has been proven that Tesla is a dangerous stock for short sellers, despite other companies in the electric vehicle industry facing unfavorable factors such as trade tensions, sluggish consumer demand, and intensified competition. In July of this year, nearly one-fifth of the hedge funds tracked by Hazeltree shorted Tesla, but these hedge funds were caught off guard after the company's sales data triggered a significant increase in stock prices.
As the market digests news of Trump's victory, renewable energy stocks from wind to solar are starting to decline, and people are concerned that Trump will fulfill his promise to cut clean energy incentives.
According to China Energy News, on the one hand, Trump has clearly expressed support for the development of traditional energy, and market analysis believes that the oil and gas industry will usher in a period of development dividends in the next four years. On the other hand, Trump's attitude towards the new energy industry is complex. He has not publicly expressed his lack of support for the development of renewable energy industries such as "wind and solar", but at the same time, he has promised to revoke the Inflation Reduction Act, which promotes a green economy, after taking office.
Lekander said that in over a year, he expects even Tesla to feel the sting of Trump's anti climate policies. He explained that despite the connection between President elect Trump and Musk, "Trump's victory is very negative for Tesla, the automotive company.