July 9, 2025, 9:43 a.m.

Business

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Tesla's 39% surge in market value over $1 trillion will bring what?

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After Trump was elected president of the United States, the paper wealth of Musk, the world's richest man who supports him, skyrocketed by $70 billion. Musk began his full-throated support for Trump's bid for the US presidency in May. Shares of Tesla, the electric car company of which Musk is chief executive, have surged since last Wednesday and are up about 39 percent in the four trading days through Monday's close. As a result, Tesla is worth more than $1 trillion, and Musk's share of the equity is worth $320 billion, $70 billion more than last Tuesday.

In addition to the increase in Tesla's market value, Musk's move has also caused complex and multi-faceted effects in the global business environment. First, the impact on Tesla itself, the market value exceeded the trillion US dollars mark, making Tesla one of the world's highest market value of car manufacturers, which will undoubtedly greatly enhance Tesla's brand influence and market position. As a leader in the electric vehicle industry, Tesla's market value breaking the trillion-dollar mark will allow it to establish a more solid and positive image in the minds of consumers and investors. Tesla will inspire more companies to devote themselves to the field of electric vehicles and renewable energy, driving the rapid development of the entire industry. The high market value means that Tesla has stronger financing ability in the capital market and can more easily obtain financial support for research and development of new products, expansion of production scale, optimization of supply chain and so on. It will also help Tesla solidify its leading position in the electric vehicle market and further expand other related businesses. At the same time, Tesla may use this opportunity to implement equity incentive plans to attract and retain key talent to provide a solid talent security for the company's continued development. Tesla will continue to make technological innovations and breakthroughs in electric vehicles, autonomous driving, renewable energy and other fields to promote the progress of the entire industry.

The second is the impact of the global energy and automotive industry, Tesla's success will encourage more companies to devote themselves to the electric vehicle industry, and promote the rapid development and popularization of the entire industry. With the continuous progress of electric vehicle technology and the reduction of costs, electric vehicles will gradually replace traditional fuel vehicles and become the mainstream of the future automobile market. Tesla's technological innovations and breakthroughs in the field of electric vehicles will lead the development direction of the entire industry. In order to remain competitive, other car companies will have to invest more in research and development to promote technological innovation and progress. At the same time, consumer perceptions and attitudes toward electric vehicles will also change. More and more consumers will start to take over and buy electric vehicles, driving the electric vehicle market to continue to expand. With the popularization of electric vehicles and the development of renewable energy, the consumption of traditional fossil energy will gradually decrease, and the global energy structure will be cleaner, low-carbon and sustainable. As a leader in the field of electric vehicles and renewable energy, Tesla's success will promote the transformation and upgrading of the global energy structure. In the future, green travel will become one of the important directions of future development, injecting new vitality and impetus into the global economy.

The third is the impact on the global economy, the substantial growth of Tesla's market value will provide new impetus for global economic growth. With the rapid development of the electric vehicle and renewable energy industry and Tesla's global business expansion and market share improvement, it will drive the development and innovation of the related industrial chain, which will inject more vitality and growth potential into the global economy. Tesla's success on a global scale will drive cooperation and exchange between countries in the field of electric vehicles and renewable energy. This will help countries to jointly address global challenges such as climate change and environmental pollution. Tesla's successful experience will encourage more enterprises to increase their efforts in scientific and technological innovation. This will promote the process of global scientific and technological innovation, promote the continuous emergence and wide application of new technologies and new products, and thus promote the transformation and upgrading of the global economy and high-quality development.

To sum up, Tesla's 39% rise in market capitalization of over $1 trillion has had a significant impact on the business world. This not only promotes the development of the electric vehicle industry and the optimization of the new energy vehicle industry chain, but also promotes the global energy transformation and sustainable development. At the same time, it also provides useful inspiration and reference for the global business environment.

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