Tesla Set to Ride Trump Tailwinds Over Next Four Years: Mizuho

Tesla Inc. (TSLA) is poised to benefit significantly from potential regulatory changes under the Trump administration, according to Mizuho Securities USA LLC. The analysts at Mizuho believe that Tesla's close association with President-elect Donald Trump, Vice President-elect Mike Pence, and other key figures in the incoming administration will lead to favorable policies for the electric vehicle (EV) industry. These policies could include streamlining federal robotaxi rules, which currently vary by state, and repealing or changing the Inflation Reduction Act, which spells out tax credits for EVs. Tesla's already sizeable lead in EVs and its high U.S.-made components could further strengthen its competitive position. Additionally, Trump's immigration policies could lead to a smaller pool of cheap labor, favoring more investment in automation, which could benefit Tesla's humanoid robot, Optimus.

Tesla's stock price has surged since Election Day, adding more than $30 billion in market capitalization and crossing the $1 trillion threshold for the first time since 2022. Shares are up nearly 70% this month, compared with an advance of about 12% for the S&P 500 index. Mizuho analysts expect Tesla's close association with the Trump administration to have a positive impact on the company's stock performance and market valuation over the next four years.



Tesla's stock price has surged since Election Day, adding more than $30 billion in market capitalization and crossing the $1 trillion threshold for the first time since 2022. Shares are up nearly 70% this month, compared with an advance of about 12% for the S&P 500 index.



Tesla's stock price has been volatile over the past three years, with significant fluctuations in value. However, the company has shown a general upward trend, with a notable surge in stock price following the 2024 U.S. presidential election.

In conclusion, Tesla is well-positioned to benefit from potential regulatory changes under the Trump administration, according to Mizuho Securities USA LLC. The company's close association with key figures in the incoming administration, as well as its strong lead in the EV market, could lead to favorable policies and a competitive advantage. Tesla's stock price has surged since Election Day, and the company is expected to continue to perform well over the next four years.