Tesla rallies on election day as investors place their bets early on the auto sector

Tesla (NASDAQ:TSLA) was one of the leading gainers in the S&P 500 Index in early trading on Tuesday. The move appears to be tied to election bets, without any notable developments with the company or the EV sector. While prediction markets show Donald Trump and the Republicans with a bettors’ edge and polling indicates a race as close to call, both methodologies of gauging winners have faltered in recent elections to add to the potential for sudden share price swings in the automobile sector.

As for post-election analysis under a GOP victory scenario, there has been some speculation that Elon Musk could be an official member of a Trump Administration, but the consensus is that he would be in an advisory role that would not disrupt his roles with Tesla (TSLA) and SpaceX (SPACE).

Shares of Tesla (TSLA) were up 3.8% in morning trading to $251.60 vs. the 52-week range of $138.80 to $273.54. Looking ahead, the consensus of analysts is that Tesla (TSLA) will ride out any electric vehicle industry changes under a new administration and Congressional makeup to perhaps increase its EV dominance, although risks with the China business are expected to be an overhang that could back a breakout.

Elsewhere in the auto sector, Rivian Automotive (RIVN), Lucid Group (LCID), General Motors (GM), and Ford Motor (F) also showed small gains in early action, which may be an indication that some traders are taking the Kamala Harris side of the election wildcard.