Trump's election victory sends Trump Media shares soaring despite huge losses in the third quarter of 2024, with Elon Musk's Tesla also rising
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In the US presidential election held on November 5, 2024, former Republican President Donald Trump defeated Democrat Kamala Harris to win . Trump Media & Technology Group Corp. (Trump Media), a media company founded by Trump, saw its stock price soar in the wake of the presidential election results, despite losing $19.2 million (approximately 2.96 billion yen) in the third quarter of 2024.
Trump Media (DJT) Shares Rally as Trump Closes In on US Election Victory - Bloomberg
https://www.bloomberg.com/news/articles/2024-11-06/trump-media-rallies-as-republican-closes-in-on-election-victory-m35ol0rt
Trump Media gains post-election, even as Truth Social parent reports $19 million quarterly loss | AP News
https://apnews.com/article/truth-social-donald-trump-media-earnings-d2cf7bd5483660080f678ba74deb6c52
Tesla's Stock Jumps After Trump's Victory - The New York Times
https://www.nytimes.com/2024/11/06/business/tesla-stock-elon-musk-trump.html
Tesla jumps nearly 15% as Trump-backer Musk seen benefiting from White House win
https://www.cnbc.com/2024/11/05/tesla-gains-more-than-9percent-in-extended-trading-as-election-data-rolls-in.html
Trump Media is a media company founded by Trump and operates the social media platform ' Truth Social ' that Trump launched in 2021. Truth Social is a platform that attracts many conservative users, but it has been reported that it is struggling, with the number of users declining compared to when the service first launched.
According to Trump Media's earnings report released on the evening of November 5, Trump Media's revenue for the third quarter from July to September 2024 will be just over $1 million (approximately 154 million yen), and the loss will reach $19.2 million. Trump Media will not disclose performance indicators such as the average number of users and revenue per user that other publicly listed companies regularly disclose.
Despite Trump Media posting significant losses, shares of Trump Media jumped 35% at the start of trading on the 6th after Trump was declared the winner of the US presidential election. Although the increase has since subsided, this result suggests that Trump Media's stock price is driven by the election results rather than its business performance.
According to Bloomberg, the economic newspaper, Trump Media's price-to-sales ratio
Tesla, run by Elon Musk, who supported Trump's election campaign, was also affected by Trump's election victory. Tesla's stock price rose by nearly 15% on November 6th.
Trump has pledged to end subsidies for electric vehicles (EVs), but this could be a tailwind for Tesla, which already has a large share of the EV industry. Daniel Ives, an analyst at financial services firm Wedbush , said, 'Tesla has unmatched scale and scope in the EV industry, and this dynamic could give Musk and Tesla a distinct competitive advantage in a subsidy-free environment.'
Musk has been supporting Trump's election campaign financially and publicly, and Trump even praised Musk during his victory speech. Musk is also expected to become head of the Government Efficiency Commission, which will audit the finances and performance of the entire federal government under the Trump administration.
'A new star has been born. It's Elon,' Donald Trump said in his victory speech after the US presidential election, praising Elon Musk - GIGAZINE
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