Tesla, Bitcoin and Truth Social boom in election aftermath
The value of assets tied to Donald Trump — and those likely to benefit under his administration — surged in the wake of his decisive electoral victory on Tuesday.
Leading the way was Trump Media and Technology Group, the company that owns the Truth Social media platform. Its stock closed up 6% in Wednesday trading. Trump is the majority owner of the company.
Shares of Tesla, the electric automaker owned by Elon Musk, also rose sizably — up 15%. Musk was heavily involved in promoting Trump’s campaign, and the president-elect has indicated he would appoint Musk, the world’s richest person, to a Cabinet-level position tasked with tackling perceived government waste.
And the price of bitcoin increased 9%, touching an all-time-high of nearly than $76,000. Cryptocurrencies and companies in the crypto space generally had broad gains Wednesday.
Trump has promised to reduce government oversight of the cryptocurrency industry, which provided a steady stream of funds to his campaign, and to a lesser extent his Democratic rival, Vice President Kamala Harris, throughout the presidential race. Trump served as keynote speaker at this year’s annual Bitcoin conference in Nashville.
In a note to clients Wednesday, Isaac Boltansky, managing director and director of policy research at BTIG, a financial services firm, noted several other sectors are likely to benefit from a second Trump presidency, including private prisons, fossil fuel, nuclear and clean coal, defense industry firms and online consumer finance firms that may have otherwise been subject to close regulatory scrutiny.
Trump has generally pledged to extend or enact major tax cuts while loosening regulations, something that the business community is set to embrace. Stocks across the board rose Wednesday in anticipation of stronger economic growth.
