It comes as a surprise that Donald Trump will rely on Elon Musk for advice
Published By: Angela Campbell on January 27, 2017 12:41 pm EST
With the election of Donald Trump as President of the United States, companies such as Tesla Motors Inc. (NASDAQ:TSLA) were expected to be damaged heavily. However, it seems as if the damage being done immediately after the election result to their shares has been recovered. Elon Musk’s company has been able to gain considerably despite the disagreement between the CEO and Mr. Trump.
Elon Musk had criticized the President by saying that he is not the right guy for the job before the elections on CNBC. Mr. Trump had also dismissed his call for a carbon tax as a hoax giving a clear sign that the era for renewable energy companies is over before it even started.
The tables have seemed to turn now, as there are signs of an agreement between the two. Tesla shares have surged since the election. In our view, there are certain reasons for this surge.
Morgan Stanley has recently upgraded its rating on the stock; has said: "When you look at the businesses Tesla is in, you see many areas of overlapping interest. To the extent the new administration prioritizes the creation of valuable, innovative high tech and manufacturing jobs, Tesla stands at the epicenter of that."
The President had invited Mr. Musk to the Trump Tower in December as part of technology executives group and also named him in his strategic and policy forum for business leaders. In a separate meeting in The White House, a participant said that Elon Musk brought up the topic of Carbon tax and the President did not reject it.
The Tesla CEO and Solar City has also endorsed the candidate for the Secretary of State Mr. Rex Tillerson. It has come as a surprise for many that Donald Trump will rely on Elon Musk for advice when clearly they were on two opposite ends of the rope before the elections. Tesla shares are seen falling today as they ticked 0.69% down at 10:13 AM EST while trading at $250.77.