Tesla shares soar as Musk's ties with Trump boost confidence

Tesla's stock surged 8% in overnight trading on the Robinhood platform. This marks a rebound after a string of six declining sessions. On Tuesday, the stock rose 3.5% during regular trading hours, according to CNBC.

The gains followed the revelation of Elon Musk's significant involvement in Trump's election campaign. In October, the Tesla CEO donated nearly $75 million to America PAC, a political committee he established earlier this year to support the Republican candidate.

Investors are particularly focused on Donald Trump's announcement that he would appoint Musk to lead a commission on government efficiency if he wins the election. At a rally in October at Madison Square Garden, Trump suggested reducing federal spending by $2 trillion.

The rise in Tesla's stock price is noteworthy given that Trump is not generally viewed as a supporter of the clean energy sector, including electric vehicle manufacturers. Since the beginning of the year, Tesla's stock has significantly underperformed compared to the broader market, increasing by only 1.2% compared to the S&P 500 index's 21.2% rise.

Analysts highlight the paradox of the situation: even though Trump's policies may not be favorable to the electric vehicle industry, investors assume that Musk's personal connections with the former president could bring specific business benefits to Tesla. During the latest rally, Musk spoke about "liberating entrepreneurs from excessive government control and reducing tax burdens."

Tesla's stock market reaction to the U.S. elections is one of the strongest. Currency and cryptocurrency exchange rates, oil prices, and bond yields are also experiencing significant changes.