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Trump Victory Could Propel Tesla to $1 Trillion Market Cap Sooner, Wedbush Says

AInvestWednesday, Nov 6, 2024 7:11 am ET
1min read

As Donald Trump's overwhelming support for a second term as U.S. president grows, related stocks have skyrocketed, especially those of Tesla, which is backed by Musk. Wedbush analysts predict that Trump's victory could help Tesla break the $1 trillion market cap sooner.

Dan Ives, a prominent analyst at Wedbush, forecasts a "very robust bullish market reaction" following Trump's win, which could add $40 to $50 per share to Tesla's stock price almost immediately.

Shares of Tesla jumped over 11% in premarket trading after Trump secured 279 votes in the Electoral College, positioning him to become the 47th U.S. president.

Ives believes that deregulation under Trump's presidency will be a key driver for Tesla. He argues that the elimination of tax credits for electric vehicles could ultimately benefit Tesla by enhancing its scalability and market reach. This dynamic could give Tesla a clear competitive advantage in a non-EV subsidy environment, especially with likely higher tariffs on Chinese imports that would deter cheaper Chinese electric vehicles.

Additionally, the expedited development of autonomous vehicles, particularly Tesla's recently unveiled Cybercab, is projected to be a significant growth driver, with its launch potentially moved up by a year to 2027.

"Ultimately, I think Tesla is the most undervalued AI name in the market," Ives stated. He believes that a Trump presidency would unlock further opportunities for Tesla and Musk.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.