4TSLA : If You Invested $1,000 In Tesla Stock When Elon Musk…

Tesla Inc TSLA CEO Elon Musk may have hurt the electric vehicle brand and its sales demand by diving deeper into the world of politics.

Shareholders who bought Tesla stock during periods tied to Musk’s political moves may have seen gains along the way. Here’s a look back at Musk’s endorsement of Donald Trump for the 2024 election and how much investors could have made following his support.

What Happened: Musk supported Trump during the 2024 election with hundreds of millions of dollars donated to super political action committees that supported the Republican. Musk also appeared alongside Trump at several rallies to drum up support and held some rallies of his own in key swing states.

It was July 13, 2024 when Musk officially publicly endorsed Trump for the 2024 presidential election, a move that came after months of criticism of President Joe Biden.

“I fully endorse President Trump and hope for his rapid recovery,” Musk tweeted on July 13.

The tweet came after an assassination attempt was made on Trump’s life at an outdoor rally in Pennsylvania.

Musk’s endorsement on x has over 220 million views and remains a potential key piece in Trump securing the votes to return to the White House.

Investing $1,000 in Tesla: Musk’s public endorsement was viewed as a potential positive for Tesla stock at the time as it could mean a more friendly administration if Trump was elected, helping to secure needed regulation on electric vehicles, autonomous vehicles and more.

Tesla stock opened for trading at $255.97 on July 15, the first trading day after Musk’s endorsement. The stock was up 3.1% at open compared to the closing price on July 12.

An investor could have purchased 3.91 shares of Tesla with $1,000 the first day of trading after Musk’s public endorsement of Trump.

Fast forward to today and the $1,000 investment in Tesla from Musk’s endorsement would be worth $1,358.53, up 35.9% in 10 months.

Back in December, Tesla shares soared to all-time highs of $488.54 on the heels of Trump’s win and the potential for the EV company to benefit from the new administration. The $1,000 investment from July would have been worth $1,910.19 at it’s all-time high, up 91.0%.

Compare that to the same $1,000 invested in the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500. A $1,000 investment in the ETF from the time of Musk’s endorsement to now would be worth $1,055.61, up 5.6%.

Why It’s Important: Musk’s endorsement of Trump led to him being tasked with leading the Department of Government Efficiency to help cut government spending.

Musk’s time away from Tesla working the government role and spending less hours at the EV company may have hurt the company’s progress. Musk’s deeper push into politics also saw severe backlash with an anti-Musk/anti-Tesla movement prompting boycotts and demonstrations at Tesla dealerships, and in some cases vandalism of dealerships and vehicles.

Trump has publicly supported Musk and Tesla, but also been publicly critical of the electric vehicle sector overall.

One development that could help Tesla tremendously in the future is the Highway Traffic Safety Administration updating regulations that could make testing and regulation easier.

The move comes after President Trump previously opposed autonomous vehicles.

The new Trump White House administration has taken steps to make autonomous driving regulation easier in the future.

The NHTSA announced it would allow exemptions to U.S. Auto Safety Standards.

The update from the White House administration comes in stark contrast to previous plans announced by Trump.

“Do you like autonomous? Does anybody like an autonomous vehicle? Know what that is? Right? When you see a car driving along? Some people do, I don’t know. A little concerning to me, but the autonomous vehicles we’re going to stop from operating on American roads,” Trump said.

Musk’s involvement with the government may have also benefitted the billionaire with more government deals for his companies and less oversight of the companies he runs.

Trump showing a change of heart on self-driving vehicles, or simply allowing his administration to ease regulations, could suggest he’s become more informed on the issue, supports deregulation despite personal skepticism, or is rewarding Musk for his loyalty.

The Trump administration is also looking to end the $7,500 tax credits on electric vehicles that helped boost the sector. While removing the credits could be a negative for Tesla as some of its vehicles qualify, it would likely be worse news for Tesla competitors and ultimately be a positive for the company.

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Image created using artificial intelligence via Midjourney.