Elon Musk created the perfect hedge for Tesla (TSLA) stock with his support of Donald Trump, Al Root writes in this week’s edition of Barron’s. The president-elect isn’t a friend of electric vehicles. He has said they are a risk to the U.S. auto industry and promised to eliminate tax credits on EV purchases as well as emission “mandates” necessitating that auto makers build battery-powered cars, the author notes. But while several EV stocks underperformed after the election, Tesla rose 14.8% on Wednesday and added $119M in market cap. Clearly, the market is betting that Musk bought a great deal of protection for Tesla shares, the publication adds.
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