Tesla’s stock (TSLA) has surged to a $1 trillion valuation – seemingly over the assumption that the Trump and Musk relationship is going to benefit the automaker.

The company is virtually worth more than the next 10 biggest automakers combined.

Tesla has extended its post-election rally another 7% this morning – resulting in its valuation surpassing $1 trillion for the first time in years.

The company has long been the most valuable automaker in the world, but it is now worth more than the next 10 biggest automakers combined:

Considering there has been no significant news concerning Tesla this week other than the US elections, it’s fairly clear that the latest rally is related to the election and the close relationship between Tesla CEO Elon Musk and President Elect Donald Trump.

What is Trump going to do for Tesla?

Tesla added over $200 billion to its valuation since the election. That’s a whole Toyota added to its valuation.

What does justify that? What can Trump do that will help Tesla that much?

It’s hard to tell exactly as what Trump says he will do and what he actually does aren’t always the same things, but there are a few theories.

The President Elect made it clear that he wanted to remove the EV incentives that kept Tesla’s sales from falling in the US over the last few years. This will make Tesla’s vehicles more expensive, but some Tesla shareholders are hoping that it will cripple other EV competition, leaving Tesla alone in the future.

They are expecting something similar with the tariffs that Trump has been promising to impose on goods coming from other countries.

The auto industry is globalized and US automakers rely on parts from other countries, but on average, Tesla is more vertically integrated than other automakers.

While all automotive costs are likely to go up, Tesla investors believe the company will be able to stomach the tariffs better than the competition.

Finally, on the automotive manufacturing front, there’s also the more conspiratorial theory that Trump could carve out exceptions built especially for Tesla now that Musk has his ear.

While automotive manufacturing is still the bulk of Tesla’s business, Musk was clear that he believes that “Tesla is worth nothing without self-driving.” Trump can’t help Tesla achieve self-driving, but Musk has hinted that he could build a federal framework to get self-driving systems approve at the federal level rather than state-by-state.

This would help Tesla more easily roll out when/if it solves self-driving.

Electrek’s Take

They have some good points about Tesla being more competitive than other EV automakers in a harsher cost environment.

Tesla has already proved it during the supply chain crisis amid the pandemic.

My problem with it is that it’s not good for electric vehicles. It’s only good for Tesla. At Electrek, we are for the acceleration of EV adoption in order to help ensure the transportation and energy industries are on an accelerated path to sustainability.

Tesla used to be for that too.

Within a scenario where EV incentives are removed and automotive costs increase due to tariffs, EV adoption goes down in the US. Electric vehicles will be more expensive at the sticker price and historically, that has always resulted in fewer sales.

It’s going to be true of Tesla and all other EV automakers. The only way you can see that as been good for Tesla is if that kills the other automakers and only Tesla survives.

That’s a real possibilities, but it would be bad for the mission to accelerate electric transportation.

It goes against Tesla’s original mission, which was to accelerate the entire industry’s transition.

In a way, it feels like Tesla was early and took advantage of the incentives and as other companies are trying to catch up, Tesla, or rather Musk, aims to close the door behind them. This goes against the original mission.

If that’s really what is going on, Tesla is not mission driven anymore. It has become all about the stock.

Mercedes is now paying dealers up to $3,000 for every EV they sell until the end of the year. As part of its new Q4 2024 EQ Sales Challenge, the company is giving dealers a good reason to move EVs off the lot.

Mercedes is now paying dealers for EV sales

The luxury brand is struggling to gain traction in the US EV market this year, with sales of the EQE, EQB, and EQS class all down by double-digits through September.

Mercedes is looking to turn things around with a new dealer incentive to drive EV sales. According to online vehicle research firm CarsDirect, Mercedes is paying dealers up to $3,000 for every EV they sell.

Through January 2, 2025, Mercedes is running its Q4 2024 EQ Sales Challenge. The program allows dealers to earn $2,000 on almost every 2024 EV model they sell while meeting monthly targets.

Dealers who hit their targets can earn an extra $1,000 on every sale, up to $3,000 per EV. Although the bonus is for dealers, buyers may also see some savings with new incentives to drive sales.

Mercedes is offering $7,500 in EV lease bonus cash and an up to $5,000 loyalty bonus. On some models, like the high-performance AMG EQS, a $7,500 lease bonus and $15,000 incentive offer up to $22,500 in savings.

Including incentives, lease prices are listed as low as $419 a month for the 2024 Mercedes EQB 250+ SUV. The EQB model starts at $53,050.

More affordable models are coming soon. Mercedes is teasing its upcoming lower-priced CLA EV ahead of its official debut. CEO Ola Källenius took the new EV on a first drive at its Immendingen site this week, revealing new design details like the three-point headlights.

The new model will be a the first of a new family of Mercedes models. The CLA EV kicks off “a new chapter for the entry-level segment at Mercedes-Benz,” the company said. It’s expected to be revealed next year with deliveries in 2026.

Are you ready to drive off in your new all-electric Mercedes? We can help you find the right model at the best price. You can use our links below to find deals on Mercedes-Benz EV models in your area.

GM is retiring another gas-powered car at its Kansas plant to clear room for the next-gen Chevy Bolt EV. The facility will soon house a new “family of Bolt models” as GM brings back the popular, low-cost EV.

GM is retiring the gas-powered Cadillac XT4

GM announced it will retire the gas-powered Cadillac XT4 SUV in January as it prepares to reintroduce the Bolt.

The XT4 is Cadillac’s cheapest SUV, starting at $41,990. However, sales are down 12% through the first nine months of 2024 after slipping 28% in Q4 2023.

GM already announced plans in May to retire the Chevy Malibu to make room at its Kansas plant for next-gen EVs, including the Bolt. The Malibu will be phased out this month after over 10 million models have been sold since 1964.

Although GM said XT4 production would begin again on the same line as the Bolt EV, a new Reuters report suggests that no longer appears to be the case.

The report claims GM will now only build Bolt models on the assembly line. Production of the previous Bolt ended at the end of 2023.

Since then, we’ve learned there will actually be several Bolt EV models. GM’s president, Mark Reuss, confirmed that the new model would be a part of “a family of Bolts,” including an even lower-priced model.

Reuss said prices will initially start slightly higher than the $28,785 MSRP on the previous model, but it will be an upgrade with faster charging.

GM CEO Mary Barra claims the new Bolt will offer “an even better driving, charging, and ownership experience” with new tech. It will also be the first EV in the US to feature LFP batteries.

The company is expected to begin building next-gen Chevy Bolt EV models in late 2025 as a 2026 model year.

GM is investing $390 million in its Fairfax, Kansas plant to prepare it for re-introducing the next-gen Chevy Bolt EV.

Electrek’s Take

GM reached a milestone last month, selling its 300,000th EV in the US since 2016. The Chevy Bolt EV accounted for the great majority of those sales.

Chevy Bolt EV sales totaled 62,045 in 2023, 38,120 in 2022, 24,828 in 2021, 20,745, 16,418 in 2019, 18,019 in 2018, and 23,300 in 2017. In addition, another 8,582 have been sold in 2024. So, of the 300,000, over 212,000 of them were Bolt EVs.

The company is coming off a record 32,095 electric vehicles sold in the third quarter as its other Ultium-based EVs, including the new Chevy Blazer, Equinox, and Silverado EVs, are rolling out to dealers nationwide.

GM continues introducing lower-priced models, like the 2025 Equinox EV LT. Starting at $35,000, the company claims it’s the “most affordable EV in the US with +315 miles range.”

With the next-gen Chevy Bolt expected to be even more affordable, the new model could be GM’s biggest yet.