Musk creates perfect hedge for Tesla with support of Trump, Barron’s says

Elon Musk created the perfect hedge for Tesla (TSLA) stock with his support of Donald Trump, Al Root writes in this week’s edition of Barron’s. The president-elect isn’t a friend of electric vehicles. He has said they are a risk to the U.S. auto industry and promised to eliminate tax credits on EV purchases as well as emission “mandates” necessitating that auto makers build battery-powered cars, the author notes. But while several EV stocks underperformed after the election, Tesla rose 14.8% on Wednesday and added $119M in market cap. Clearly, the market is betting that Musk bought a great deal of protection for Tesla shares, the publication adds.