Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Tesla stock sees $200 billion surge since Trump win

Published 11/08/2024, 11:54 PM
Updated 11/09/2024, 12:16 AM
© Reuters
TSLA
-

Investing.com -- Tesla's (NASDAQ:TSLA) stock continues to see a Trump 2.0 tailwind as CEO Elon Musk played a crucial role in the president-elect’s victory. Since Trump was declared the winner on Tuesday night, Tesla shares have been up nearly 26%, including Friday's 6% jump. The market cap of the EV maker is up over $200 billion since the election.

On Thursday, analysts at BofA Securities raised their price target on Tesla to $350 from $265, saying the U.S. election supports the company’s growth trajectory.

“In our view, a Trump administration could ease regulations, supporting TSLA’s growth trajectory,” analyst John Murphy stated.

For one, while the Biden administration has launched several probes into Tesla’s FSD system, they see the potential for less aggressive scrutiny under Trump.

In addition, the analyst highlights that Musk has proposed a national standard for regulating self-driving vehicles, which the Trump administration has expressed an openness to.  "This could ease the roll-out of the Robotaxi business that TSLA plans to start offering in 2025, and currently requires state-by-state approvals," the analyst commented.

Further, relaxed EPS rules and curbs on China may lessen EV competition, a plus for Tesla.  "President-elect Trump has indicated plans to relax environmental rules," the analyst wrote. "This could induce incumbent OEMs to slow their EV ramps amidst lessened regulatory pressure that is driving the shift from ICE vehicles to EVs. This could help TSLA maintain its hold on the domestic EV market, especially as it is planning to release new models with more affordable entry prices. Further, the Trump administration is likely to take a tougher stance on China. This could prevent some potential competitors to TSLA from participating in the US EV market."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.