Tesla shares continue to soar after President-elect Trump secured a second term in the White House with CEO Elon Musk as a major backer, sending the electric vehicle maker’s valuation above $1 trillion following a post-election rally last week.
Now, analysts see Tesla’s market capitalization doubling before Trump’s second term even hits the half-way mark.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 344.09 | +22.87 | +7.12% |
Wedbush analysts led by Dan Ives raised their price target for Tesla from $300 to $400 per share in a note Monday, writing “we believe the march to a $1.5 trillion and $2 trillion valuation for TSLA over the next 12 to 18 months has now begun.”
Tesla shares jumped more than 10% in late-morning trading to around $355 per share on Monday, after its valuation topped $1 trillion for the first time in two years on Friday. The stock is up more than 44% over the past five days, and has soared 64% over the past month.
HOW THE TRUMP WHITE HOUSE COULD POTENTIALLY USE ELON MUSK’S BUSINESSES
“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 [Full-Self-Driving]/autonomous clears significantly under a new Trump era,” the analysts wrote.
Musk endorsed Trump’s bid to return to the White House and was a prominent financial backer of his campaign. The Tesla CEO and world’s wealthiest person has been an outspoken critic of the Biden-Harris administration.
INVEST IN ANYTHING ELON MUSK RELATED: KYLE WOOL
Trump has been critical of incentives and subsidies for EVs, but has commended Musk’s work with Tesla and praised him as a “super genius” during his victory speech early Wednesday morning.
Musk could play a role in the incoming Trump administration, as the two have discussed his participation in a government efficiency push aimed at reducing wasteful federal spending.
The Webush analysts wrote, “In essence, Musk made a strategic and big bet on a Trump White House win that will be known as a ‘bet for the ages’ for TSLA bulls as now Tesla and Musk are set to reap the benefits from a new friendlier regulatory era in the Beltway ahead.”
FOX Business’ Eric Revell contributed to this report.
