It was Trump's near-assassination in July that sealed the deal for Musk. Shortly after the shooting, he wrote on X: “I fully support President Trump and hope for his speedy recovery.”

Since then, the two have become increasingly connected.

While Musk is responsible for companies like SpaceX (which also includes Starlink) and the aforementioned X, Tesla investors have the most to gain – or lose – from Musk's ties to Trump.

Trump has said in the past that electric vehicles are a “hoax” and that a switch to electric vehicles would destroy the U.S. auto industry and destroy U.S. jobs. He has also promised to reverse Biden's electric car policy upon his return to office.

The Biden administration's signature climate law, the Inflation Reduction Act, established the $7,500 electric vehicle tax credit for consumer vehicles, including numerous others for commercial electric vehicles and battery production, among other areas.

With Trump in the White House and a Republican-led Senate and perhaps the House of Representatives, this huge boon to the electric vehicle industry and Tesla could be in jeopardy.

“I’m all for electric cars, but you have to have all the alternatives,” Trump said in a statement interview in March. “First of all, they are not widely available, they cost too much and they are all made in China,” he said.

“You can’t just switch to electricity,” Trump said, adding that the grid isn’t up to the challenges of production and distribution.

But Trump didn't change his tune until August. “I am for electric cars. I must be, you know, because Elon has been very supportive. … So I have no choice,” Trump said during a rally.

“(Trump is) not necessarily a big supporter of the concept of a government-led transition to electric vehicles,” iSeeCars analyst Karl Brauer told Yahoo Finance. “So it's interesting to see that people feel that Elon's relationship with Donald Trump will overcome a possible policy change, because I think the EPA regulations and expectations for electric vehicle sales and market share are not realistic.”

Brauer expects the U.S. will reassess and likely roll back strict EPA emissions requirements and federal tax credits for electric vehicles, which would negatively impact electric vehicle companies, including Tesla.

However, given Tesla's competitive advantages in electric vehicles, this could actually be a positive for the company.

“Tesla has the scale and scope unparalleled in the electric vehicle industry, and this dynamic could give Musk and Tesla a clear competitive advantage in an environment without electric vehicle subsidies, coupled with likely higher tariffs in China that continue to squeeze out cheaper Chinese electric vehicles “We will prevent big players (BYD, Nio, etc.) from flooding the US market in the coming years,” Wedbush’s Dan Ives wrote in a note today.

“We believe a Trump victory could boost Tesla stock by $40 to $50 per share,” Ives added, noting that the company’s market cap could exceed $1 trillion “if Autonomous /FSD will be accelerated from 2025.”

In fact, Tesla's robotaxi ambitions, although still nascent and in early testing, could be boosted by a Trump White House.

“We believe Trump’s victory will help expedite regulatory approval of the company’s autonomous driving technology,” CFRA’s Garrett Nelson wrote on Wednesday.

Nelson significantly increased his Tesla price target from $265 to $375 and upgraded the stock to Buy after the election. He added that the potential elimination of the electric vehicle tax credit would actually increase Tesla's “competitive advantage” due to Tesla's cost advantage in producing electric vehicles.

The robotaxi move is a little more nuanced because Tesla lags behind competitors like Google's (GOOG, GOOGL) Waymo and GM's (GM) Cruise, Brauer said.

Brauer added that Tesla stock has taken just about everything out of the traditional auto business; Musk needs to find the “next big thing” to unlock massive value for Tesla shareholders – and that is the robotaxi and self-driving technology.

And Trump could support these initiatives.

“Will Trump now support these technologies? More than the previous government? “Probably,” Brauer said. “I don't think the previous administration was an ardent fan of Elon, so maybe he can get help and have an ally in the White House to help him get to the next level beyond electric vehicle sales, and maybe is that’s one of the things that investors are hoping for.”

Tesla expects to continue robot taxi testing in 2025 and launch as early as 2026. Perhaps with Trump and the introduction of new regulators, Tesla's Cybercab robot taxis will hit the streets sooner than many think.

Pras Subramanian is a reporter for Yahoo Finance. You can keep following him Twitter and further Instagram.

Click here for the latest stock market news and in-depth analysis, including stock-moving events

Read the latest financial and business news from Yahoo Finance