Tesla’s stock surged more than 5% on Friday, propelling the electric vehicle maker to a market capitalization of over $1 trillion for the first time. The sharp rally, which has seen the company’s stock rise 27% this week, comes in the wake of President-elect Donald Trump’s election victory, fueling investor optimism about a favorable political environment for Tesla.

Analysts like Dan Ives from Wedbush Securities suggest that a Trump administration could ease regulatory pressures, providing a competitive advantage for Tesla. With the electric vehicle market poised for further growth, Trump’s potential rollbacks of regulations, including tax incentives for EVs, are seen as a boost for the company. Tesla’s market cap was $807.1 billion earlier this week, and it is now up 26% year to date, joining a select group of tech companies valued over $1 trillion, including Apple, Amazon, and Microsoft.

Tesla’s latest earnings report showed revenue of $25.18 billion and net income of $217 million for Q3. CEO Elon Musk forecast a 20-30% increase in vehicle growth next year, driven by lower-cost vehicles and advancements in autonomous driving technology. Musk also sees a Trump administration as a potential ally in pushing for federal approval processes for autonomous vehicles, which are currently regulated at the state level.

As the electric vehicle market grows, Tesla’s leading position is solidified by both its technological advancements and a favorable political climate.