Shares of Trump Media & Technology (DJT), the parent company of Truth Social, surged on Monday following a failed assassination attempt on former President Donald Trump over the weekend. Simultaneously, Tesla (TSLA) CEO Elon Musk officially endorsed Trump for the 2024 election on Saturday, which also led to a jump in Tesla stock on Monday.
DJT stock skyrocketed more than 30% to 41.40 during Monday’s market session, peaking at 46.27, its highest level since early June.
The Trump stock shot up 50% in pre-market trading after shots were fired during a rally on Saturday. Trump, appearing to bleed from his ear, was quickly escorted off the stage by security. Authorities continue to investigate the incident as an assassination attempt, and further details are emerging.
Additionally, on Monday, a federal judge dismissed the indictment in the classified documents case against Trump, citing the improper appointment of the special counsel, according to a court filing.
The value of DJT stock is closely tied to the Trump brand, particularly since Truth Social was launched after Twitter, now X, suspending Trump’s account following the January 6, 2021, riot at the U.S. Capitol.
In the wake of the assassination attempt, Trump received significant endorsements from the business community, including from Elon Musk and Bill Ackman.
“I fully endorse President Trump and hope for his rapid recovery,” Musk posted on X, formerly Twitter, on Saturday. Tesla stock climbed 1.8% to 252.64 on Monday, hitting an intraday high of 265.60, building on a more than 25% rally in July.
The Trump Stock: Cash Strapped But Surviving
Trump Media recently reported that the cash exercise of stock warrants between June 20 and July 1 brought in over $105 million, according to regulatory filings, despite the company facing significant cash outflows.
As of July 1, Trump Media had more than $350 million in cash and no debt, according to DJT.
In April, Trump Media filed a preliminary prospectus with the U.S. Securities and Exchange Commission (SEC) to offer 21.49 million shares of common stock, issuable upon the exercise of warrants.
In May, Trump Media & Technology announced another quarterly loss, with revenue falling short of $1 million again. The company reported an adjusted EBITDA loss of $12.1 million, partly due to one-time payments related to its SPAC merger with Digital World Acquisition Corp. in March.
Revenue for the quarter was $770,500, marking the second consecutive quarter below $1 million. Trump Media’s GAAP loss was $327.6 million, primarily due to $311 million in noncash expenses from the conversion of promissory notes and the elimination of previous liabilities.
Nevertheless, the company asserted it has sufficient working capital to sustain operations for the foreseeable future.
Trump Media rose more than 16% on March 26, its first trading day under the DJT ticker, reaching an intraday high of 79.38.
Previously, Digital World Acquisition Corp. transitioned to Trump Media & Technology Group after merging with Trump’s tech and social-media platform on March 22. The SPAC stock had surged 35% the day before the ticker change to “DJT.”
In 2024, DJT/DWAC has gained 77%. Trump holds nearly a 65% stake in DJT.
Please follow Kit Norton on X @KitNorton for more coverage.
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