Tesla shares rise only 0.5% after announcing 'Musk nomination'

Tesla shares were flat, rising less than 1% after Tesla Inc TSLA CEO Elon Musk was named the next head of government efficiency in the administration of President-elect Donald Trump.

Tesla shares closed at $330.24 on the New York Stock Exchange, up 0.53% from the previous day, with a market capitalization of $1.601 trillion at the close.

Expectations have already been largely reflected in the stock price that Musk will exert enormous influence on various government agencies to create an environment favorable to Tesla, such as removing regulations related to autonomous driving technology.

On Wall Street, however, there is growing skepticism about further gains in Tesla shares, saying the recent gains have been overheated, although there is a possibility of benefiting under the Trump administration, Bloomberg reported.

Tesla's stock price soared 39.2% over the four trading days after Trump's election was confirmed on the 6th, trading 104 times its expected profit as of the closing price on the 12th, exceeding the average of the major technology technology "Magnificent 7" group of 32 times.