Tesla options draw 'euphoric' trading as Trump win fires up stock
Tesla Inc.'s stock soared on Wednesday as investors bet on a potential surge in demand for electric vehicles under a Donald Trump presidency.
The stock closed up 12.6%, the biggest gain since June 24.
The rally was fueled by Trump's victory in the presidential election, which some analysts say could lead to a more favorable environment for clean energy stocks.
Tesla has been one of the biggest beneficiaries of the recent surge in interest in electric vehicles.
The company's stock has more than tripled in value this year, making it the best-performing automaker in the world.
Tesla's options trading volume also surged on Wednesday, with more than 40,000 contracts changing hands, according to Trade Alert.
The majority of the trades were bullish, with investors betting on Tesla's stock continuing to rise.
"The euphoria surrounding Tesla's stock is a sign that investors are betting on a big future for electric vehicles," said David Kudla, an analyst at Mainstay Capital Management.
"Trump's victory is seen as a positive for Tesla because he has promised to roll back regulations on clean energy and promote the use of domestic fossil fuels."
However, some analysts are more cautious about Tesla's prospects under a Trump presidency.
They argue that Trump's policies could lead to higher oil prices, which would make electric vehicles less attractive to consumers.
It remains to be seen whether the rally in Tesla's stock will continue under a Trump presidency.
However, the recent surge in interest in electric vehicles is a positive sign for the company's long-term prospects.