Tesla’s (NASDAQ: TSLA) stock price has continued its meteoric rise in the wake of the 2024 US Presidential election, with shares soaring over 37% in the past five trading days.
The electric vehicle (EV) giant’s market capitalization has now surpassed the $1 trillion milestone, solidifying its position as one of the most valuable companies in the world.
The surge in Tesla’s stock price has been fueled by a combination of factors, including positive analyst sentiment and expectations around the impact of the new administration’s policies.
Wedbush analyst Dan Ives has raised his price target on Tesla from $300 to $400, citing the potential for the company’s autonomous driving and AI initiatives to thrive under a Trump presidency.
Ives believes that the Trump White House will create a more favorable regulatory environment for Tesla’s self-driving technology, clearing the “spiderweb” of federal regulations that the company has encountered in the past.
While the analyst expects the new administration to be generally negative for the EV industry as a whole, he sees Tesla’s scale and scope as a potential competitive advantage in a non-subsidy environment.
The market’s enthusiasm for Tesla’s prospects under a Trump presidency stands in contrast to the common perception that the incoming administration would be unfavorable for the EV industry.
However, Elon Musk’s close relationship with the President-elect appears to be a significant factor in the bullish sentiment surrounding the company.
Tesla’s remarkable resurgence in the past month has erased the relative lackluster performance it experienced earlier in the year.
The company’s stock is now up nearly 38% since the election, adding over $400 billion to its market value in the process.
As the industry and investors continue to closely monitor the unfolding dynamics between the new administration and the EV sector, Tesla’s ability to navigate the shifting regulatory landscape will be a crucial factor in determining its future growth and dominance.
