Tesla's market capitalization soared past $1 trillion in a robust rally on Friday, driven by expectations that CEO Elon Musk's enterprises may receive favorable treatment from President-elect Donald Trump's administration, given Musk's significant backing during the election campaign.

The electric vehicle maker’s stock surged 8.2% to $321.22, pushing its valuation above the trillion-dollar mark for the first time in over two years. This week, Tesla’s shares gained 29%, adding more than $230 billion to its market cap, marking the company's best performance since January 2023.

"Tesla and CEO Elon Musk appear to be among the biggest beneficiaries of the election results. We believe Trump's win could fast-track regulatory approval for Tesla's autonomous driving technology," noted Garrett Nelson, a senior equity analyst at CFRA Research.

Musk is anticipated to advocate for supportive regulation for autonomous vehicles, a Tesla priority. According to a source familiar with the matter, he could also work to prevent the US National Highway Traffic Safety Administration from pursuing any enforcement actions concerning the safety of Tesla's current driver-assistance systems.

Tesla has prioritized the development of self-driving technology, moving away from earlier plans for a budget electric vehicle under $30,000. However, commercial rollout has faced development and regulatory obstacles.

"If Musk can encourage Trump to create federal standards for autonomous vehicles, it would benefit the auto sector, which prefers unified federal regulations over state-by-state variations," commented David Whiston, an equity strategist at Morningstar.

Musk’s personal wealth has now surpassed $300 billion, per Forbes' real-time billionaires list.

Tesla shares recently rose in late October after the automaker reported a jump in quarterly profit margins and projected delivery growth of 20% to 30% in the coming year. The company remains the most valuable automaker globally, with competitors like Japan's Toyota and China's BYD lagging significantly.

Tesla’s stock trades at a valuation of 93.47 times its 12-month forward earnings estimates, far above Nvidia's 38.57, Microsoft's 30.77, and Ford's 6.29, highlighting the market’s high growth expectations for the electric automaker.