Tesla shares leap as Trump win sets stage for Musk's EV business

Tesla stands to make significant gains under a Trump administration due to its size, with the expectation that subsidies for alternative energy and electric vehicles will be threatened.

While that would be a negative overall for the industry, it could give Tesla an advantage because of market share. Shares of rival electric vehicles sank sharply Wednesday.

Tesla shares jumped 14% at the opening bell.

Trump has proposed tariffs of 10% to 20% on foreign goods that would also impact electric vehicle maker's outside the U.S., especially in China.

"Tesla has the scale and scope that is unmatched," said Wedbush analyst Dan Ives, in a note to investors. "This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players."

Shares of rival EV maker Rivian plunged 8% and Lucid Group fell 4%. China-based NIO slid 5.3%.