Tesla shares continue epic surge as market cap leaves $1T in its rearview
11/11/2024 10:54 AM
Tesla shares (NASDAQ: TSLA) are continuing their epic surge on Wall Street as the company is feeling the effects of various buy signals, including the Presidential Election that yielded Donald Trump as the winner and analyst perception that the company’s story is changing in a big way.
Over the past five trading days, Tesla shares are up over 37 percent, reaching levels over $350 for the first time in years and sending the company’s market capitalization to a spot that puts it in the top 10 most valuable companies globally.
Shares are up over 7 percent so far on Monday morning, likely surging due to a continuance of what occurred last week with the stock on Wall Street, as well as a new, bullish note from Wedbush’s Dan Ives, who bumped his price target up to $400 from $300.
Ives wrote in a note to investors today:
“We are raising our price target on Tesla to $400 from $300 as we believe the Trump White House win will be a gamechanger for the autonomous and AI story for Tesla and Musk over the coming years. We estimate the AI and autonomous opportunity is worth $1 trillion alone for Tesla and we fully expect under a Trump White House these key initiatives will now get fast tracked as the federal regulatory spiderweb that Musk & Co. have encountered over the past few years around FSD/autonomous clears significantly under a new Trump era. We maintain our OUTPERFORM rating on Tesla.”
Although a Trump presidency has largely been looked at as a negative for EVs as a whole, it is being seen as a bullish trigger for Tesla, especially considering CEO Elon Musk’s relationship with President-elect Donald Trump.
Ives continued in the note:
“We believe a Trump presidency will be an overall negative for the EV industry as very likely the EV rebates/tax incentives get pulled, however for Tesla we see this as a potential positive with some caveats. Tesla has the scale and scope that is unmatched in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment starting in 2025, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players (BYD, Nio, etc.) from flooding the US market over the coming years.”
Tesla needed a very small period of time to delete what was a relatively lackluster year on Wall Street. At the beginning of November, shares were up for the year, but by roughly just 1 percent.
In the month so far, Tesla has gained nearly $100 of value and added major dollars to its valuation. It’s up 38 percent since Tuesday’s election, which equates to roughly $410 billion in value.
The Trump presidency could end up being an extremely bullish time for Tesla, especially if regulatory barriers that were an issue with the Biden Administration are less tumultuous with a Musk ally in office.
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