Why Tesla, Alphabet, and Amazon are Surging Post-Election: Investment Insights for 2024

It’s the moment investors have been waiting for: we finally know who will occupy the most important office in the world. Trump has been elected as the new U.S. president, and the stock market is already reacting with enthusiasm.

The S&P 500 rose by more than 2.5%, reaching an all-time high of around 5,929. The Nasdaq saw an even larger increase, gaining nearly 3%. Among the day’s biggest movers was Tesla. The automaker, whose CEO Elon Musk supported Trump during his presidential run, surged by 14%—a particularly noteworthy jump in a sector where competitors like BMW, Mercedes, Volkswagen, and Detroit-based automakers are facing declining demand and dropping stock prices.

In my view, Musk's support for Trump could help Tesla navigate regulatory challenges more easily, possibly paving the way for self-driving taxis—a move that could be a game-changer.

Other big gainers today were Alphabet and Amazon. However, I don’t think these stocks rose because of Trump’s win. Instead, I believe they are currently undervalued and have significant growth potential over the coming months. As we already know, Alphabet has been struggling to maintain to move its stock price to the new highs even with a great reports.

With Trump’s presidency in mind, I’m considering reducing my investments in the defense sector for two main reasons. First, Trump is likely to prioritize negotiations and diplomacy in Ukraine and the Middle East. Second, while the demand for weapons remains high, I don’t expect substantial growth in the defense sector over the next few years. For these reasons, I plan to redirect my funds toward other stocks in my portfolio.

In the end, I am—and always have been—bullish on America. With such a large pool of talented people and great companies, the opportunities are limitless.

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