NEW YORK — On Wednesday, Tesla’s stock experienced a notable surge following the election results that confirmed Donald Trump’s return to the presidency, an outcome that CEO Elon Musk had shown considerable support for during the final stages of the campaign.

The potential return of Trump to the White House could prove advantageous for Tesla, given its size, as there are expectations that government subsidies for renewable energy and electric vehicles may face cuts.

While this scenario poses a challenge for the broader electric vehicle sector, Tesla might find itself in a more favorable position due to its established market share. As a response to the election outcomes, shares of Tesla increased by 14% right at the market’s opening.

Trump’s administration has indicated plans to impose tariffs ranging from 10% to 20% on imports, which would affect foreign electric vehicle manufacturers, particularly those based in China.

According to Wedbush analyst Dan Ives, Tesla’s extensive operations and unmatched scale may provide it with a distinct competitive edge in an environment where electric vehicle subsidies are minimized, especially considering potential higher tariffs from China that could hinder less expensive Chinese electric vehicle companies.

In contrast, shares of competing electric vehicle manufacturers witnessed significant declines, with Rivian’s stock dropping by 8%, while Lucid Group fell by 4%. NIO, a company based in China, also experienced a decline of 5.3% in its shares.