An unstoppable rally is seen in Tesla shares as investors continue to bet big after Donald Trump’s victory in the 2024 US presidential election as they believe it would bring windfall profits to the Elon-owned electric vehicle maker Musk, as the two share a close relationship.

The Trump-Musk bond became the top after the Tesla CEO contributed at least $119 million to a pro-Trump spending group, federal records show. Now it seems that Musk’s funding is making him richer.

On Monday, Tesla shares jumped more than 9 percent, extending their winning streak to five sessions.

In the trading days following the 2024 US presidential election, Tesla shares overall jumped more than 40%, adding more than $300 billion in market capitalization since the November 5 US election result.

Following Trump’s triumph, Tesla shares surpassed $1 trillion in market value for the first time in two years.

However, if the gains continue, Tesla shares will hit $348.30, bringing the automaker’s value to nearly $87 billion.

Options traders are betting on further gains. The premium for three-month calls over puts is the highest since early 2021, with significant volume of contracts hoping for a rally to $450 and above.

Musk’s net worth increases

According to Forbes, Elon Musk’s net worth has reached $320 billion, putting him almost $90 billion ahead of Oracle founder Larry Ellison, the second-richest person in the world.

Over the past few months, Musk has made a massive push to bring Trump back to the White House. He even financed a swing-state operation to register right-wing voters.

Musk threw $1 million in giveaways to registered voters who signed one of his America PAC petitions and faced trial for running an illegal lottery in Pennsylvania.

He also used his social media platform X, which he acquired in 2022, to consistently express his support for Trump.

A Bloomberg report cited Wedbush analyst Daniel Ives as saying that a Trump White House would be a “game changer” for Tesla’s autonomous driving and artificial intelligence efforts.

Ives raised his price target on Tesla to $400 from $300 earlier. He estimates that “the AI ​​and autonomy opportunity alone is worth $1 trillion to Tesla.” The analyst maintained his buy-equivalent rating on Tesla stock.

On Monday, Tesla’s 14-day relative strength index, a measure of upward and downward price momentum, closed at 81. A level above 70 is often seen as a technical signal that a decline could soon be in store.

Tesla’s electric vehicles, SpaceX rockets and Neuralink brain chips: all of Musk’s businesses rely heavily on regulation, subsidies or government policies.

Musk’s potential influence in government could also be significant for his other projects.

In September, Trump announced he would create a government efficiency commission led by Musk to cut federal spending.

With the contribution of agencies.