Trump's Win Fuels Tesla's Surge as Bank of America Boosts Target to $350
AInvestFriday, Nov 8, 2024 12:00 am ET
1min read
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The conclusion of the U.S. elections has brought insights from Bank of America, which suggests that a Trump victory would be beneficial for Tesla (TSLA.US). The bank has thus upgraded its rating for Tesla to "Buy" with a target price increase from $265 to $350.

Bank of America points to Trump's proposed relaxation of environmental regulations as a significant factor. This strategy could potentially prompt other automakers to decelerate their electric vehicle development, an outcome beneficial for Tesla as it seeks to sustain its leading position in the U.S. electric vehicle market. This is especially important as Tesla plans to launch more affordable entry-level models.

Additionally, the bank anticipates that the scrutiny on autonomous driving under a Trump administration might be less stringent. Analyst John Murphy highlights that Elon Musk's proposal for a national standard governing autonomous vehicles has found an open ear in Trump's administration. This openness could ease the path for Tesla's Robotaxi business, set to roll out in 2025, which currently requires approval from individual states.

Following Trump’s electoral victory, Tesla’s stock witnessed a substantial surge, closing up 14.75% at $288.53 per share. This reflects the investor sentiment that anticipates a favorable business climate for Elon Musk's ventures under Trump’s administration, a factor that propelled Musk to maintain his position as the world's richest individual.

Tesla's market value has experienced a significant recovery, adding $300 billion since its April low. The outlook for Tesla remains positive, with analysts predicting further benefits stemming from Musk’s support of Trump, which could potentially bolster Tesla’s market advantages in the foreseeable future.

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