Why Trump Trade winners include Tesla, cryptocurrency, and prisons
Donald Trump’s triumph in the US presidential election sparked a furious spike in the financial markets. After a week, the spike now seems to be leveling out. After climbing around 5% since November 4, the day before the election, the US’s three main stock indices closed the day lower on Tuesday.
These are a few of the businesses that have succeeded as investors attempt to predict what the upcoming four years may hold.
Tesla
Since November 4th, Tesla’s stock has increased by about 35%. The surge has increased the company’s market worth back above $1 trillion for the first time since 2022 and increased Elon Musk’s wealth, as he now owns about 13% of the company. Trump and Musk’s connections may also help Tesla manage changes in the US-China relationship, where the firm is well-established.
According to economists, Trump’s anticipated reduction in government assistance for electric vehicles, including tax incentives, may help Tesla, the US market leader, by making it more difficult for competitors to overtake it.
Based on market capitalization, Tesla is among the most valuable firms in the world. It has been the most valuable carmaker in the world since July 2020. As the seventh American business to achieve this feat, Tesla briefly reached the trillion-dollar mark in October 2021 and again in November 2024. With a 19.9% market share in 2023, the business was the global leader for battery electric vehicles. The business was placed 69th in the Forbes Global 2000 in 2023 as well.
The cryptocurrency
On the heels of Trump’s victory, the price of the most well-known cryptocurrency, Bitcoin, surged more than 25% to new all-time highs this week, temporarily surpassing $89,000.On the campaign trail this year, Trump retracted his earlier claims that cryptocurrency was a hoax and instead pledged to turn the US into the “crypto capital of the planet.”
Crypto companies argue that new, customized regulations should be applied to their industry. Congress, where they might also receive a more lenient hearing this year, will probably determine that.
Cryptocurrency Trading
The online marketplace where investors can purchase, sell, and trade cryptocurrency is known as a crypto exchange. A cryptocurrency exchange functions as a brokerage where customers may convert fiat monies like dollars or pounds from their banks into cryptocurrencies like Bitcoin or Ethereum, much like traditional investing does. There are fees associated with the majority of transactions.
The Dollar
After climbing more than 2% over the past week, the dollar index is currently sitting at its highest level since April. Although it sends a more conflicting message about the state of the economy, it is excellent news for American visitors visiting other countries. It partially reflects pre-election data that indicates the US economy is doing better than previously thought.
However, investors are also concerned that additional trade barriers, reduced immigration, and lower taxes may maintain inflationary pressures, which would make the US central bank less likely to drop interest rates.
The US dollar is the country’s currency. According to our currency rankings, the USD to EUR conversion rate is the most often used US dollar exchange rate. The US dollar is frequently used as a benchmark in the forex market and is the most frequently exchanged currency worldwide. Almost all central banks throughout the world hold it as the primary global reserve currency. Furthermore, the dollar directly affects commodity pricing because it is the standard currency in the commodities market.